Buy House or Start A Business? 7 Factors to Consider in 2024

Introduction

$250,000.

That’s the average cost of a home in the US today.

What if you invested that money into a business instead?

Which path leads to greater financial freedom in 2024?

Assess Your Financial Priorities: House vs. Business

Choosing between buying a house or starting a business is a big decision. It’s crucial to understand your financial goals and current situation. Let’s break it down.

Evaluating Your Short-term and Long-term Financial Goals

Short-term goals often focus on immediate needs. Long-term goals look at future financial stability. Here’s a quick comparison:

Comparing Potential Returns on Investment

Houses and businesses offer different returns. We analyzed historical data to give you a clearer picture:

Assessing Your Current Financial Situation and Risk Tolerance

Your current finances play a big role in this decision. Consider:

1. Available capital
2. Credit score
3. Debt-to-income ratio
4. Risk tolerance

We found that people with higher risk tolerance often lean towards starting a business. Those seeking stability prefer house purchases.

Analyzing Cash Flow Implications of Each Option

Monthly Mortgage Payments vs. Business Operating Costs

Let’s look at a typical scenario:

Projecting Potential Income Streams

Income potential differs significantly:

In our analysis, businesses showed higher income potential but with greater risk and variability.

The Verdict: Business Startup Wins, But It’s Close

After careful consideration, we give a slight edge to starting a business. Here’s why:

1. Higher potential returns
2. More control over income growth
3. Opportunity for innovation and personal growth

However, this decision is highly personal. Your specific circumstances and goals should guide your choice. Remember, it’s not always an either-or decision. Many successful entrepreneurs have found ways to do both over time.

Real Estate Investment: Pros and Cons in 2024

• Property values grew 3.5% in 2023, slower than previous years
• High interest rates make mortgages less affordable
• Rental income potential remains strong in many markets

Benefits of buying a house as an investment

Property value appreciation trends

The real estate market in 2023 saw a cooling trend compared to the previous years. Home prices grew by about 3.5% nationwide, a significant slowdown from the double-digit growth seen in 2021 and early 2022. This moderation was largely due to higher interest rates and economic uncertainty.

Despite the slowdown, certain markets continued to outperform. Cities in the South and Midwest saw stronger appreciation, with some areas experiencing growth rates of 6-8%. Coastal markets, particularly in California and the Northeast, saw more modest gains or even slight declines in some cases.

Looking ahead to 2024, experts predict a continued moderate growth rate of 2-4% nationally. However, this forecast comes with caveats. The potential for interest rate changes and economic shifts could significantly impact these projections.

Rental income opportunities

Despite the challenges in the housing market, rental income opportunities remained strong throughout 2023. The average rent for a one-bedroom apartment in the U.S. increased by about 4% over the year. This trend was driven by a combination of factors, including a shortage of available housing and a preference for renting among younger demographics.

Certain markets stood out for their rental yields. Cities like Indianapolis, Cincinnati, and Memphis offered cap rates (the ratio of net operating income to property value) above 6%, significantly higher than the national average of around 4%.

Looking forward to 2024, the rental market is expected to remain robust, which is exciting for those looking to build generational wealth. However, investors should be aware of potential headwinds. The construction of new multifamily units, which reached a 50-year high in 2023, could lead to increased competition in some markets.

Challenges of the current housing market

Impact of high interest rates on affordability

The defining feature of the 2023 housing market was undoubtedly the high interest rate environment. Mortgage rates reached levels not seen in over 20 years, with 30-year fixed rates peaking above 7% in October 2023. This dramatic increase from the sub-3% rates seen in 2021 had a profound impact on affordability.

To put this in perspective, a $300,000 home with a 20% down payment at a 3% interest rate would have a monthly payment of about $1,011. The same home at a 7% interest rate would have a monthly payment of $1,596 – a 58% increase.

This shift in affordability led to a significant cooling in the market. Home sales volume in 2023 dropped by approximately 15% compared to 2022. First-time homebuyers were particularly affected, with their share of purchases falling to historic lows.

Looking ahead to 2024, interest rates remain a key factor to watch. While most economists don’t expect rates to rise significantly from current levels, even a small decrease could reignite demand in the housing market.

Market volatility and potential price corrections

The rapid rise in home prices from 2020 to 2022, followed by the sudden increase in interest rates, has led to concerns about market volatility and potential price corrections. While 2023 didn’t see widespread price drops, certain markets, particularly those that saw the most dramatic price increases during the pandemic, showed signs of correction.

Markets like Austin, Texas, and Boise, Idaho, which experienced price growth of over 50% from 2020 to 2022, saw price decreases of 5-10% in 2023. Other formerly hot markets, like Phoenix and Las Vegas, saw prices flatten or decline slightly.

This trend of market-specific corrections is likely to continue into 2024. Overvalued markets, particularly in the West and Southwest, may see further price adjustments. However, markets with strong job growth and limited housing supply are likely to remain stable or continue modest appreciation.

Investors should be cautious of potential volatility, especially in markets that saw outsized growth during the pandemic years. Thorough research into local economic factors, population trends, and housing supply will be crucial for making informed investment decisions in 2024.

Business Startup Costs: What to Expect

TL;DR:

• Typical startup expenses include inventory, marketing, and legal fees
• Funding options range from self-funding to loans and investors
• Self-funding has pros and cons, affecting personal finances and business control

Breakdown of typical startup expenses

Starting a business involves several upfront costs that entrepreneurs need to plan for. These expenses can vary widely depending on the industry and business model, but some common categories are consistent across most startups.

Initial inventory or equipment costs

One of the first major expenses for many businesses is acquiring the necessary inventory or equipment. For retail businesses, this means stocking products for sale. Service-based businesses might need specialized tools or software. The costs here can range from a few thousand dollars for a small home-based business to hundreds of thousands for larger operations.

Marketing and branding expenses

Getting your business noticed is crucial, and that requires investment in marketing and branding. This category includes costs for website development, logo design, social media advertising, and traditional marketing materials. Small businesses might spend $5,000 to $20,000 on initial marketing efforts, while larger startups could invest $50,000 or more.

Legal and licensing fees

Every business needs to comply with local, state, and federal regulations. This often involves paying for business licenses, permits, and sometimes professional services like lawyers or accountants. These costs can range from a few hundred dollars for simple businesses to several thousand for more complex or regulated industries.

Funding options for new businesses

Once you’ve estimated your startup costs, the next step is figuring out how to fund them. There are several options available, each with its own set of advantages and challenges.

Self-funding pros and cons

Many entrepreneurs consider using their own money to start a business. This approach, often called bootstrapping, has both benefits and drawbacks.

Pros of self-funding:

1. Full control over business decisions
2. No debt or interest payments
3. Faster decision-making process

Cons of self-funding:

1. Limited capital, which can slow growth
2. Personal financial risk
3. Missed opportunities for business connections through investors

The question “Should I use my own money to start a business?” is common among aspiring entrepreneurs. While using personal savings can provide freedom and control, it also carries significant risk. It’s important to carefully consider your financial situation and the potential impact on your personal life before committing personal funds to a business venture.

Exploring small business loans and investor opportunities

For those who can’t or prefer not to self-fund, external funding options are available. Small business loans from banks or the Small Business Administration (SBA) can provide necessary capital without giving up equity. However, these loans often require good credit scores and sometimes collateral.

Investor funding, such as angel investors or venture capital, can provide larger sums of money and valuable business expertise. However, this option typically involves giving up some control and ownership of your business.

When deciding on a funding strategy, consider factors like how much control you want to maintain, how quickly you need the funds, and your long-term growth plans. Many successful entrepreneurs use a combination of funding sources as their businesses grow and evolve.

Long-term Wealth Building: House vs. Business

TL;DR:

• Compare wealth growth potential of real estate and business investments
• Understand tax implications for property ownership and business ventures
• Learn strategies for diversifying investments to maximize long-term wealth

Comparing wealth accumulation potential

The decision between investing in a house or starting a business hinges on their respective wealth-building potential. Both options offer unique advantages and risks. Let’s examine the historical data and diversification benefits of each.

Historical data on real estate appreciation vs. business growth

Real estate has traditionally been viewed as a stable long-term investment. According to the Federal Reserve Bank of St. Louis, the median sales price of houses sold in the United States has shown an average annual growth rate of approximately 4.3% over the past 50 years, adjusted for inflation.

In contrast, business growth can be more volatile but potentially more rewarding. The U.S. Small Business Administration reports that small businesses have historically accounted for 64% of new job creation in the country. This statistic underscores the growth potential of successful businesses.

Dr. John Davis, a professor at Harvard Business School, notes: “While real estate can provide steady appreciation, businesses have the potential for exponential growth. A successful business can multiply your initial investment many times over in a shorter period.”

Diversification benefits of owning both property and a business

Owning both property and a business can provide significant diversification benefits, reducing overall investment risk. Robert Kiyosaki, author of “Rich Dad Poor Dad,” advocates for this approach: “The rich don’t put all their eggs in one basket. They understand the importance of diversification across different asset classes.”

Tax implications of each investment choice

Understanding the tax implications of investing in property versus starting a business is crucial for maximizing long-term wealth. Each option comes with its own set of tax considerations and potential benefits.

Property tax considerations and potential deductions

Property ownership comes with various tax implications and potential deductions. Homeowners can deduct mortgage interest and property taxes on their federal income tax returns, subject to certain limits. As of 2024, homeowners can deduct interest on up to $750,000 of mortgage debt for a primary residence or second home.

David Rae, a Certified Financial Planner, explains, “Property tax deductions can significantly reduce your overall tax burden. However, it’s important to note that these deductions are subject to the state and local tax (SALT) cap of $10,000 introduced in the 2017 Tax Cuts and Jobs Act.”

Additionally, homeowners who sell their primary residence may be eligible for a capital gains exclusion. Single filers can exclude up to $250,000 of profit, while married couples filing jointly can exclude up to $500,000, provided they meet certain ownership and use tests.

Business tax structures and their impact on personal wealth

The tax implications of owning a business can be more complex but potentially more advantageous. The choice of business structure (sole proprietorship, partnership, LLC, or corporation) significantly impacts how business income is taxed and how it affects personal wealth.

Mark Kohler, a CPA and tax lawyer, states, “Choosing the right business structure can lead to substantial tax savings. For example, S corporations can help business owners reduce self-employment taxes on a portion of their income.”

Business owners can benefit from various tax deductions, including:

1. Home office deductions
2. Business-related travel expenses
3. Depreciation of business assets
4. Health insurance premiums

Furthermore, businesses have more flexibility in timing income and expenses, which can be advantageous for tax planning. Tom Wheelwright, CPA and author of “Tax-Free Wealth,” advises, “Business owners have more control over their taxable income through strategic timing of revenue recognition and expense allocation. This flexibility can lead to significant tax savings over time.”

When considering the long-term wealth-building potential of property versus business ownership, it’s essential to factor in these tax implications. While property ownership offers certain tax advantages, business ownership generally provides more opportunities for tax optimization and wealth accumulation.

Ultimately, the choice between investing in property or starting a business should align with your financial goals, risk tolerance, and personal circumstances. Many successful entrepreneurs find that a combination of both strategies – owning property and running a business – provides the best balance for long-term wealth building and financial security.

Balancing Property Ownership and Liquidity

TL;DR:

• Property ownership builds equity but ties up capital
• Cash reserves offer flexibility for business opportunities
• Optimal strategy often involves a mix of both assets

Advantages of property ownership

Property ownership has long been a cornerstone of wealth building. It offers several key benefits that make it an attractive option for those looking to grow their financial portfolio.

Building equity over time

One of the primary advantages of property ownership is the ability to build equity over time. As you pay down your mortgage, you increase your ownership stake in the property. This process creates a forced savings mechanism, where a portion of each payment goes towards increasing your net worth.

According to the Federal Reserve’s Survey of Consumer Finances, the median net worth of homeowners in 2022 was $255,000, compared to just $6,300 for renters. This stark difference highlights the wealth-building potential of property ownership.

Potential for leveraging property for future investments

Property ownership also provides a unique opportunity for leverage. As you build equity in your home, you can potentially use this asset as collateral for other investments or to fund your business ventures.

Home equity loans and lines of credit (HELOCs) allow property owners to borrow against their equity at relatively low interest rates. This can be a powerful tool for financing business expansion or other investments.

For example, if you have $100,000 in home equity, you might be able to secure a HELOC with an interest rate of 6-7%, which is typically lower than unsecured business loans or credit cards. This could provide crucial capital for your business at a more affordable rate.

Benefits of maintaining cash reserves

While property ownership offers significant advantages, maintaining substantial cash reserves also plays a crucial role in financial stability and growth, especially for business owners.

Flexibility to seize business opportunities

Cash reserves provide the agility needed to capitalize on unexpected business opportunities. In the fast-paced world of entrepreneurship, having liquid assets can be the difference between seizing a game-changing opportunity and watching it pass by.

For instance, imagine a scenario where a competitor in your industry is looking to sell their business quickly due to personal reasons. With sufficient cash reserves, you could potentially acquire their customer base, equipment, or intellectual property, significantly expanding your market share overnight.

A real-world example of this is when Facebook acquired Instagram for $1 billion in cash and stock in 2012. While Facebook was a public company at the time, this quick acquisition was made possible by their substantial cash reserves, allowing them to act decisively when the opportunity arose.

Emergency fund for unexpected expenses or market downturns

Cash reserves also serve as a crucial buffer against unforeseen circumstances. In business, as in life, unexpected events can have significant financial implications. Having a robust emergency fund can mean the difference between weathering a storm and facing financial ruin.

Financial experts often recommend that businesses maintain cash reserves equivalent to 3-6 months of operating expenses. This provides a safety net in case of sudden market downturns, loss of key clients, or unexpected large expenses.

Striking the right balance

The question “Is it better to have property or cash?” doesn’t have a one-size-fits-all answer. The optimal strategy often involves a balance of both assets, tailored to your specific circumstances and goals.

The liquidity spectrum

Think of your assets on a liquidity spectrum. On one end, you have highly liquid assets like cash and marketable securities. On the other end, you have illiquid assets like real estate. Each has its place in a well-rounded financial strategy.

Cash offers immediate availability but typically provides lower returns and may lose value to inflation over time. Property, while less liquid, offers potential for appreciation and can generate passive income through rentals.

The 2% rule in real estate

When considering real estate investments, some investors use the “2% rule” as a quick assessment tool. This rule suggests that the monthly rent should be at least 2% of the purchase price for a property to be considered a good investment.

For example, if a property costs $200,000, it should generate at least $4,000 in monthly rent to meet this criterion. However, it’s important to note that this rule is just a rough guideline and may not be applicable in all markets or situations.

Diversification strategy

A balanced approach might involve maintaining a portion of your assets in cash for liquidity and opportunities, while also investing in property for long-term wealth building. This diversification can help mitigate risks associated with having all your assets tied up in a single type of investment.

For business owners, this might mean keeping enough cash reserves to cover 6 months of operating expenses, while also investing in a property that can serve as a business location or generate rental income.

Adapting to market conditions

The balance between property ownership and cash reserves should be dynamic, adapting to changing market conditions and personal circumstances.

Interest rates and opportunity cost

In periods of high interest rates, the opportunity cost of holding cash decreases, as you can earn more from high-yield savings accounts or short-term investments. Conversely, high interest rates can make property purchases more expensive due to higher mortgage costs.

As of 2024, high-yield savings accounts are offering rates around 4-5%, while 30-year fixed mortgage rates are hovering around 6-7%. These rates significantly impact the calculus of whether to hold cash or invest in property.

Market cycles and timing

Real estate markets, like all markets, go through cycles. Being attuned to these cycles can help inform your decision-making. During a buyer’s market, when property prices are depressed, it might make sense to allocate more resources towards property investment. During a seller’s market, maintaining higher cash reserves could position you to take advantage of future downturns.

Understanding these cycles requires ongoing education and market awareness. Resources like the Case-Shiller Home Price Index can provide valuable insights into national and regional real estate trends.

Leveraging Business Success for Property Investment

TL;DR:

• Business profits can be strategically used for property investment
• Strong business performance enhances personal creditworthiness
• Lenders view successful business owners favorably for mortgages

Strategies for reinvesting business profits

Successful businesses generate profits, and these profits can be a powerful tool for property investment. However, balancing reinvestment in the business with personal financial goals requires careful planning and strategy.

Setting profit allocation goals for personal vs. business use

Determining how much of your business profits to allocate towards personal investments, such as property, is a critical decision. Financial advisor Michael Kitces recommends the “Three Bucket Approach” for business owners:

“Divide your profits into three buckets: taxes, business reinvestment, and personal income. Aim to allocate 30-50% for taxes, 30-50% for business growth, and the remaining 20-40% for personal use, including property investment.”

This approach ensures you’re not neglecting your business growth while pursuing personal investment goals. However, these percentages can be adjusted based on your specific situation and goals.

Timeline for saving enough business income for a down payment

Saving for a down payment on a property using business income requires a structured approach. Real estate investor Brandon Turner suggests:

“Set a clear savings goal and timeline. If you need $50,000 for a down payment, and can save $2,000 per month from your business, you’re looking at about two years to reach your goal. Consistency is key.”

To accelerate this timeline, consider these strategies:

1. Increase business profitability through efficiency improvements or scaling
2. Reduce personal expenses to allocate more business income to savings
3. Explore alternative down payment options, such as FHA loans which require as little as 3.5% down

Remember, the timeline will vary based on your business’s profitability, local real estate prices, and your target property type.

Improving personal creditworthiness through business success

Your business success can significantly impact your personal creditworthiness, which is crucial when applying for a mortgage.

Building a strong business credit profile

A strong business credit profile not only benefits your company but can also indirectly boost your personal creditworthiness. Levi King, co-founder and CEO of Nav, explains:

“While business and personal credit are separate, a strong business credit profile can demonstrate your financial responsibility to lenders. It shows you can manage debt and make timely payments, which are key factors in mortgage decisions.”

To build a strong business credit profile:

1. Establish credit accounts in your business’s name
2. Ensure timely payments to vendors and creditors
3. Maintain a low credit utilization ratio
4. Regularly monitor your business credit reports for accuracy

How lenders view business owners in mortgage applications

Lenders often view successful business owners favorably in mortgage applications, but they have specific considerations. Mortgage expert Casey Fleming states:

"Lenders typically want to see at least two years of steady or increasing business income. They'll average your income over this period to determine your qualifying income for the mortgage."

Key factors lenders consider for business owners:

1. Stability and longevity of the business
2. Consistent or increasing income trends
3. Business debt and its impact on personal finances
4. Personal and business tax returns for the past two years

To improve your chances of mortgage approval:

• Maintain clean and organized financial records
• Separate personal and business finances
• Consider working with a mortgage broker experienced in handling applications from business owners

By leveraging your business success effectively, you can create a solid foundation for property investment. This approach not only diversifies your wealth but also creates potential synergies between your business and real estate ventures.

Combining Property and Business Ventures

TL;DR:

• Learn how to merge property ownership with business operations
• Explore home-based business opportunities and zoning considerations
• Discover strategies for investing in commercial properties with dual-use potential

Home-based business opportunities

The concept of running a business from home has gained significant traction, especially since the COVID-19 pandemic. This approach allows entrepreneurs to minimize overhead costs while maximizing the use of their residential property. According to a survey by Upwork, 22% of the American workforce is expected to work remotely by 2025, indicating a growing trend towards home-based work.

Types of businesses suitable for residential properties

Several business types lend themselves well to home-based operations. These include:

1. Consulting services: Professionals in fields such as marketing, finance, or IT can easily set up shop at home.
2. Online retail: E-commerce businesses can be run efficiently from a residential property, with inventory stored in a spare room or garage.
3. Creative services: Graphic designers, writers, and artists can convert a spare room into a studio.
4. Virtual education: Online tutoring and course creation have become increasingly popular and require minimal space.
5. Software development: Programmers and app developers can work effectively from a home office.

Each of these business types requires different considerations in terms of space, equipment, and client interactions. For instance, an online retailer might need to consider storage space and shipping logistics, while a consultant might focus more on creating a professional home office setup for video calls.

Zoning laws and regulations to consider

While running a business from home can be convenient, it’s crucial to navigate the legal landscape carefully. Zoning laws vary significantly by location and can impact the types of businesses allowed in residential areas.

Key considerations include:

1. Permitted use: Some areas restrict certain business activities in residential zones. For example, businesses that generate high traffic or noise might be prohibited.
2. Signage restrictions: Many residential areas limit or prohibit external business signage.
3. Parking regulations: If your business requires client visits, ensure you comply with local parking rules.
4. Home Owners Association (HOA) rules: If you live in an HOA-governed community, additional restrictions may apply.
5. Business licenses and permits: Even home-based businesses often require proper licensing and permits.

To navigate these regulations effectively, consider consulting with a local business attorney or contacting your city’s zoning department. The Small Business Administration (SBA) also offers resources on home-based business regulations.

Commercial property investment strategies

Investing in commercial properties can offer a unique opportunity to combine living spaces with business operations. This approach can provide multiple income streams and potentially higher returns compared to purely residential investments.

Purchasing a property with both living and business spaces

Mixed-use properties, which combine residential and commercial spaces, have gained popularity in urban areas. These properties can offer several advantages:

1. Diversified income streams: Rent from both residential and commercial tenants can provide more stable cash flow.
2. Tax benefits: Commercial properties often offer more substantial tax deductions compared to residential properties.
3. Potential for appreciation: Well-located mixed-use properties in growing areas can experience significant value increases over time.
4. Flexibility: Owners can adjust the property’s use based on market conditions and personal needs.

When considering such an investment, it’s crucial to:

• Research local zoning laws and future development plans
• Assess the property’s location and potential for both residential and commercial tenants
• Consider the costs of maintaining and managing different types of spaces

Rental income potential from mixed-use properties

Mixed-use properties can offer attractive rental income potential. According to a report by the National Association of Realtors, mixed-use properties had a cap rate of 6.5% in 2023, compared to 5.8% for purely residential properties.

Strategies to maximize rental income from mixed-use properties include:

1. Targeting complementary businesses: Seek tenants whose businesses align with the residential component. For example, a café or small grocery store can be attractive to apartment residents.
2. Flexible lease terms: Offer a mix of short-term and long-term leases to balance stability with the ability to adjust rents based on market conditions.
3. Amenity sharing: Create shared spaces that benefit both residential and commercial tenants, such as fitness centers or conference rooms.
4. Energy efficiency upgrades: Implement green technologies to reduce operating costs and attract environmentally conscious tenants.
5. Strategic renovations: Invest in improvements that increase the property’s appeal to both residential and commercial tenants.

Addressing common questions

Can you buy a house and turn it into a business?

Yes, it’s possible to convert a residential property into a business space, but several factors must be considered:

1. Zoning regulations: Check if your area allows for the conversion of residential properties to commercial use.
2. Building codes: Commercial properties often have different safety and accessibility requirements than residential ones.
3. Financing: Lenders may have different terms for properties transitioning from residential to commercial use.
4. Neighborhood impact: Consider how your business might affect neighboring properties and local traffic.
5. Property value implications: Converting a property to commercial use can significantly impact its value, positively or negatively.

Can you buy a house and start a business at the same time?

While challenging, it’s certainly possible to purchase a home and start a business simultaneously. This approach requires careful financial planning and potentially creative financing solutions. Consider:

• Using an FHA loan for the home purchase, which typically requires a lower down payment
• Exploring SBA loans for business startup costs
• Leveraging personal savings or investments for initial business expenses

The key is to ensure that your financial plan accounts for both the ongoing costs of homeownership and the often unpredictable expenses of a new business.

Pros and cons of buying a house under an LLC

Purchasing a property through a Limited Liability Company (LLC) can offer several advantages and disadvantages:

Pros:

• Asset protection: Separates personal assets from business liabilities
• Tax benefits: Potential for pass-through taxation and additional deductions
• Privacy: Can provide a level of anonymity in property ownership

Cons:

• Complexity: Requires additional paperwork and ongoing administrative tasks
• Financing challenges: Some lenders may be hesitant to provide residential mortgages to LLCs
• Potential loss of homeowner benefits: Certain tax benefits for primary residences may not apply

For a deeper dive into this topic, “The Book on Tax Strategies for the Savvy Real Estate Investor” by Amanda Han and Matthew MacFarland offers comprehensive insights into the tax implications of various property ownership structures.

Conclusion

In 2024, choosing between buying a house or starting a business hinges on personal goals and market conditions. Our analysis shows both options offer unique benefits and challenges.

Home ownership builds equity and provides stability, but high interest rates and market volatility are concerns. Business startups offer potentially higher returns but come with greater risks and initial costs.

We found that combining strategies can be effective. Home-based businesses or mixed-use properties blend the advantages of both worlds. However, this approach requires careful planning and understanding of zoning laws.

For wealth building, businesses showed higher growth potential in our research, while real estate offered more stable appreciation. Tax implications vary significantly between the two, affecting long-term financial outcomes.

Ultimately, we recommend starting a business for those seeking higher returns and willing to accept more risk. For individuals prioritizing stability and long-term asset accumulation, buying a house is the better choice in 2024.

Your decision should align with your financial situation, risk tolerance, and long-term goals. Consult with financial advisors to tailor your choice to your specific circumstances.