The calculation did not factor in rent inflation. With real estate tax up 2% a year, maintenance up 4%, and rent up 4%, the stock income is 5.75M, versus 7.2M in the house.
The housing price is exaggerated though. But the end result is probably a wash around 5M.But one thing is sure -- at the end of 30 years, the 5M pretax money can't buy the 5M house (because of capital gains tax), and vice versa. The rent is 112k a year at that time for this house. Would you rather own the stocks in your 60's or the house?
The housing price is exaggerated though. But the end result is probably a wash around 5M.But one thing is sure -- at the end of 30 years, the 5M pretax money can't buy the 5M house (because of capital gains tax), and vice versa. The rent is 112k a year at that time for this house. Would you rather own the stocks in your 60's or the house?