First the margin loan rate of 6% lets say for 30 years. Second is the cost of insurance,taxes,fees,etc. another 3% Maintenance/upkeep (ie: repairs) 1% Total carrying cost over 30 years = 10% annually. And I am not including the wide bid/ask spreads and fees etc.. when taking on a long position in housing. Someone putting down 10% towards a 200,000K long position in housing will have taken a 10:1 leveraged position without the upside potential you get with a 10:1 leverage. So you take the risk of 10:1 and you have to return 20% annually on your long position to at least break 10% a year. And at the end if you want to unlock value on your equity you have to borrow on it and pay who knows what. So you get screwed anyhow. You cant sell a position and cash in or hedge with calls or collect dividends etc.., its either sell the whole house or borrow against it. Buy a home because you like it. ie: beachfront,nice place etc... and take a 15 year loan or less.