Anyone FIRE without owning a house? Is it doable? Reason why I want to ask this is because I think house is a terrible investment, it won’t appreciate already compared to 2008 time due to property oversupply. Plus, have to pay mortgage interest which is 2x the house price, no rental yield due to own stay. 1 mil house need to pay almost 2mil after 35 years.

If let’s say we have 1million capital, instead of buying a house. Can’t we just put it to the equity market? US index fund, ASM, EPF etc and let it work?  Assuming a conservative 6% average annual return from S&P500, 1 million capital will yield 60k a year or 5k per month. Then use part of the passive income to pay rent at whatever place we like. The remaining use for daily expenses or reinvest it.

Can this method work?? Why I never hear people talk about this before? Rent in Malaysia isn’t too expensive anyway. 2-3k can get a decent place.

But factoring in the interest it’s really a different story isn’t it? I see many people talk about property without without talking the total interest payment. For 35 years mortage , the interest is actually higher than the house price you purchase. Interest is More than the cost of house.

Also can the house consider as asset if you stay inside it? It sounds like a liability to me. No cashflow generation and might stay stagnant for very long time. If the capital is invested in equity, at least in the long term got positive 6-7% per year. vs mortgage interest rate which is negative 3-4%.

If this is 2008 we talking about, it’s a no brainer to buy property. But I realize after 2013-2015 property macam stay stagnant and not much appreciation at all, very slow. But at the same time S&P500 growth is doubled… so is current situation still same as last time?

For 3k mortgage home, rental is about 2k in most locations. And maintenance is mostly by landlord.

In reality, most residential rental remain stagnant or even drop over the years in most locations.

Anyone FIRE without owning a house? Is it doable? Reason why I want to ask this is because I think house is a terrible investment, it won’t appreciate already compared to 2008 time due to property oversupply. Plus, have to pay mortgage interest which is 2x the house price, no rental yield due to own stay. 1 mil house need to pay almost 2mil after 35 years.

If let’s say we have 1million capital, instead of buying a house. Can’t we just put it to the equity market? US index fund, ASM, EPF etc and let it work?  Assuming a conservative 6% average annual return from S&P500, 1 million capital will yield 60k a year or 5k per month. Then use part of the passive income to pay rent at whatever place we like. The remaining use for daily expenses or reinvest it.

Can this method work?? Why I never hear people talk about this before? Rent in Malaysia isn’t too expensive anyway. 2-3k can get a decent place.

Which post are you replying? A bit confused