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Why Cars Are Better Than Houses Featured

Yesterday I was reading yet another piece about auto finance and the writer explained how much more damaging the mortgage crisis was than any auto crisis could be. In the comments, it was said. "Homes have traditionally appreciated making them a good investment. Cars depreciate making a steady source of income a necessity to service the debt. " I'm thankful somebody else responded with, "Home ownership is not an investment. It is an expensive lifestyle choice."

As I've said before, cars are a great investment in the world where illiquid assets are great investments. The main way to get money out of your house is to take on more debt. Cars, on the other hand, usually don't appreciate in value, but you can monetize them in ways other than borrowing against them. You can drive for Uber, for example. Of course, you could rent out a room in your house, or even your entire house on Airbnb, but then you need to find an alternate accommodation for yourself.

Speaking of which, the other way I always say cars are better than houses in that you can sleep in your car, but you can't drive your house to work. Well, maybe if you have an RV, but you get my point.

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Ted Craig

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