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So you are saying that in general real estate with leverage is worse than index funds without leverage?



Yes, in general, for the average person.

However, the flaw in this is that most people don't have the discipline to put excess cash they would have spent on a home into index funds and forego touching that money until retirement.

So a mortgage is a very compelling enforcement mechanism to get average people to save for retirement.

If we're being honest that's a much more powerful reason to buy a home than "leverage."




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