gjm comments on Rational Home Buying - Less Wrong

99 Post author: Yvain 27 August 2011 12:15AM

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Comment author: Vaniver 27 August 2011 03:19:55PM *  7 points [-]

Though, from an investment perspective, unless you believe the neighborhood you're going to live in will change for the better (more than the rest of the area), you're probably better putting that 35k into stocks. So, it's not 35k going down a black hole- but it might be $700 a year (presuming 4% returns on stocks and 2% returns on houses).

Comment author: gjm 27 August 2011 06:32:57PM 3 points [-]

Sure. (Though past performance is no guarantee of what happens in the future, etc.) And "would I pay $700/year for an extra bedroom?" might have a different answer from "would I trade a Lexus for an extra bedroom?".