I own a property myself and understand the arguments, but I see things a little more differently... According to his statement, you should buy a property before you start investing in the capital market. The first argument is that the leverage is very high with an investment of only 10% or up to 40% and that the property pays for itself through the rental payments. I agree with him so far, but I have SIGNIFICANTLY less stress running an equity savings plan on $VWCE and not having to deal with anything. If that's what I want, I can also hope for the next low-interest phase, get a non-earmarked loan (with quarterly annuity) from Check24, top up the $VWRL with it and repay the quarterly payments with dividends and equity. (I wouldn't, but it's no different to leveraging 😇) I would basically agree with his second argument that you don't have the discipline to keep the savings plans running like this and would rather take money away than from a property. You are simply condemned to "forced saving" because the loan installment comes at the end of the month. Many (like me) in the getquin community would NEVER touch their securities account to treat themselves to things like a car or something else. Some invest their Christmas money in a special repayment, some use it to buy shares or ETF units. 🎅 In the end, I think he's right somewhere and somewhere, of course, he's a bit biased towards his asset class. If I could make all the financial decisions of my life again, I wouldn't buy the apartment (even though I got a good deal here). I would start investing in the broadly diversified capital market with my first salary. Just let the savings plans run, if a little money comes in unexpectedly (Christmas bonus, tax refund etc.), bring that in too... With around 100k in the share portfolio, you can then think about buying a property - although I don't demonize open-ended real estate funds either, as I have zero effort and also a "relatively secure" return. But that's just my opinion - I also have friends who are ONLY invested in the housing market 🙂
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@GreenWash I see it similarly to you. All the people I know who are invested in real estate. Have several properties and are not alone. Almost every property has had to be renovated/modernized and has often doubled the cost of the property. In my experience, real estate has a higher entry cost than stocks/ETF's. In the end, everyone has to decide for themselves where to invest their money.
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