Stocks vs Real Estate (when rent is dirt cheap)

[Pranav Bhatia]

Hello BP investors,

I have a brain scratcher for everyone.

My spouse and I are confused if you should buy our first property (duplex) and become owners instead of renters OR continue renting and increase our stock portfolio.

Key points to consider:

• We live in a small city and our rent is super cheap ($400 per person)
• Hence, we are able to save or invest 60% of our monthly income into RRSP and TFSA (Canadian tax-free accounts). We buy etf's/index funds in them (6-12% average return every year)
• We are not savvy real estate investors. I have read some books and listened to 100s of podcasts and know the concepts.
• BUT, calculating the better way to grow our wealth is unclear. WHY? If we buy a property, we won't be able to save or invest 60% of our incomes. It would reduce to 20-30%.

Hence, is it still a vice decision to buy a duplex and house hack?

What do you think?