Codie Sanchez argues stocks beat houses for wealth building. A $100k investment in the stock market 20 years ago would have generated $350k to $450k more than home equity. Stocks return roughly 3 times what real estate does over two decades.
Questions this video answers
An extra $350,000 to $450,000.
About 3× (three times).
Around $400,000.
About $200 per month.
$2,400 per year, implying roughly a 6% return.
Chapters
What if they lied to you about the American dream in homeownership first stocks versus house standoff. If you put 100k into the stock market instead of home equity 20 years ago, you'd likely have an extra 350,000 to 450,000. Stocks beat owning a house by 3x over 20 years. But Cody, I want to own a rental property. Okay, let's break this down. The average price in the US is around $400,000. And after the mortgage, maintenance, taxes, you're bringing in 200 bucks a month and net income. That's 2,400 bucks a year. For 400,000 in capital risk, that's a 6% return. You'd make more money in a savings account. But Cody, my house price went up. Okay, let's play this out. You bought a house, good investment, your value increases 300k. So how do you get that money? Sell and move to another house. Oh, wait, they're all more expensive. Move to a new city. But your job, business, friends, family are all here. Maybe buying a house is not the actual American dream. You tell me what you think about buying a house.