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Re:The U.S. Housing Market vs. the Canadian Housing Market by epistasis on Saturday September 09, 2023 @03:29PM (#37449389)
These calculations ignore that most homes are eligible for extreme amounts of highly protected leverage. Sure, you can trade on margin on the stock market, but you are subject to margin calls, which is not the case with a home.

So multiple that 16x by the typical 4x-5x leveraging, and homes turn out to be really great. And since the transaction fees and the non-existence of index funds in the 1970s made it harder to invest in the stock market at a small scale, and homes were a much better investment.

Add on to that that everybody needs a place to live, and your home acting as an investment vehicle with equivalent performance to the US stock market, and people from the 1970s have had had an amazing deal that younger people have not had access to.

Re:The U.S. Housing Market vs. the Canadian Housing Market by fallingknife on Saturday September 09, 2023 @04:08PM (#37449750)
But you have to put that capital in anyway because house leverage is amortizing. Margin debt is not.
Re:The U.S. Housing Market vs. the Canadian Housing Market by compiler-guy on Saturday September 09, 2023 @05:11PM (#37450325)
All that leverage absolutely crushed investors in the 2008 housing crash, and is again now ruining people who had poor or nonexistent interest rate hedges.

The idea that it’s easy or natural to make money via leveraged housing had ruined many people.

Re:The U.S. Housing Market vs. the Canadian Housing Market by ozr on Saturday September 09, 2023 @06:36PM (#37450996)
This isn't really a thing in the US right now. Less than 10% of mortgages are adjustable. The share of ARMs in 08 was much, much higher.
Re:The U.S. Housing Market vs. the Canadian Housing Market by ethbr1 on Saturday September 09, 2023 @10:47PM (#37452443)
*/1 ARMs are insane and shouldn't be allowed in the market.

*/5s or even */3s offer an interesting option, depending on terms.

Re:The U.S. Housing Market vs. the Canadian Housing Market by refurb on Saturday September 09, 2023 @09:57PM (#37452207)
Yup, people don't realize that leverage works both way. It's not a freebie.