With mortgage rates exceeding 7%, investors increasingly compare real estate against stock market opportunities. Over the last decade, the S&P 500 has significantly outperformed residential property investments in terms of returns. However, real estate and equities serve fundamentally different purposes: homeownership addresses both lifestyle needs and financial growth, while stock investments provide pure capital appreciation. Understanding these distinct roles is crucial when deciding between purchasing property or diversifying into equity markets during periods of elevated borrowing costs.

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