i have invested in some stocks – should i sell them to pay for the down payment for a home ?

this is one of the most common questions out there . the answer is NO…

the reason : Stocks can give a much better return than a home over time .. stocks and real estate are two separate asset classes – they should not be compared.

when you are living in a home that you purchased , it actually consumes money – the mortgage / loan , utility bills ( heating , cooling , water ) , repairs ( plumbing etc ) . So it is not really an asset .

it is an emotional decision to own a home . it means that you want to settle down in the neighbourhood , like it , have a job and your children’s education is close by and all the other things are close by – groceries , salons , medical , shopping , etc

you might have heard this line before : Real estate is all about three things : location , location and location .

you cannot just sell a home tomorrow , if you wish it – it takes some time to find a buyer.it is not a liquid investment

stocks – no problem , just a few clicks on your computer or on the broker’s app or a call to your broker and the sale of the share is done. the money comes into your account in two or three days , after settlement , and you can transfer it to your bank account. most large volume stocks are very liquid .

You should be looking at stocks from a longer term perspective – invest in them regularly and keep at it . At the end of 30 or 40 years , you will have a nice big amount waiting for you.

real estate , also a long term perspective is good – buy a home from a reputed builder , so the quality is good and you don’t have to go for repairs in 5 years .