Although the government has once again been pushing for home ownership as the best way for individuals to build wealth, financial experts are quick to caution against it.
“It would perhaps be smarter, if wealth accumulation is your goal, to rent and put money in the stock market, which has historically shown much higher returns than the housing market,” Nobel Prize-winning economist Robert Shiller revealed at a Standard and Poor’s conference last week.
For one thing, home ownerships comes with a whole hosts of additional costs – like property taxes, insurance, maintenance, etc. – that doesn’t exist in the stock market.
Image via flickr/Chris Potter
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