Part 3/9:
Conversely, real estate investing often involves higher leverage - sometimes up to 20:1 - yet this form of borrowing is considered more acceptable due to the stability and appreciation trends observed in the housing market. The key reason behind this lies in the societal agreement that homeownership is a fundamental right, thereby keeping lending policies favorable for potential homeowners.
Two Investment Scenarios
For this analysis, we explore two hypothetical scenarios: one where a renter invests in stocks and another where a homeowner purchases property.