Mark Cuban riffs on the difference between investing in stocks and investing in real estate (interesting comments, too). Cuban endorses a “buy and hold” mantra when it comes to real estate, but not when it comes to stocks. Real estate provides utility (you can live in it) that you don’t get from stocks.
Buy and hold works when it comes to the HOME you LIVE IN. Turning in the keys because you have negative equity is a fool’s game. If you do, YOU WILL NEVER OWN A HOUSE.You will be a renter FOREVER.
Your home has far more value than its mark to market price because you can live in it . Do whatever you can to stick it out. It will pay off for you in the long run.
You might know Cuban as the “maverick” owner of NBA franchise Dallas Mavericks. You might also know him as the guy with a net worth of $3 Billion.
Bullhead City real estate has appreciated 214% since the turn of the century, based on annual median home sale price. I’m talking about today’s values, not the peek of the market in 2006. That’s equal to about 10% annual appreciation for 8 years. Not a bad investment. While flipping houses may have made you a lot more or a lot less, depending on your timing, buy and hold would have given you a nice gain. Not to mention the utility of real estate.
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