Housing collapse?

[Bears54]

@BMWMTBer

I may just give my kid the house or a significant down payment, if I feel they deserve it.

A few of my buddies have done that, their kids are going to get the money someday anyway, they figure might as well use it to give them a good start building equity in a home.

[BMWMTBer]

@Bears54

@BMWMTBer

I may just give my kid the house or a significant down payment, if I feel they deserve it.

A few of my buddies have done that, their kids are going to get the money someday anyway, they figure might as well use it to give them a good start building equity in a home.

I’d rather watch them enjoy the help when I’m alive. But no handouts, they only get help if I feel they’ve earned it.

[kcflyer]

I’m not telling her that either. But if her salary can’t get her into someplace other than one of the drive by shooting slums that you are so adept at finding in any city in the US, she won’t have the option of buying. When I die, she’ll get my house that she can either keep or sell and use the money from my investment to get her into a home.

[butler]

@BMWMTBer

Real estate is like any other unrealized asset class. I bought 25k of Nvidia in October and it’s worth $55,000 today, up 220%. I count that as real money though I can’t spend it. I could sell it and bank the gains but I have confidence it’ll go up. My house is a little different in that if I decided to sell to spend the gains I have to find a place to live. But as with my Nvidia, I feel my house is increasing in value.

Real Estate is the greatest asset class because it has utility, can be leveraged, and has tremendous tax benefits. I have created more wealth in my 20 years investing in real estate than I ever could have in the equities market. Of course there are always the GME exception cases…

[Henrius]

@BMWMTBer

That has nothing to do with the topic. Say KC is paying $1000 a month on his mortgage for 20 years vs paying $1000 a month rent for 20 years. Sure, he could bought a lot of gas for his $1000 10 years ago but he’d be evicted from his house or apartment.

KC didn’t buy his house as an investment but presumably it’s one of the smartest things he’s ever done financially. I have over 300k equity in my own house and I absolutely count it as part of my net worth even though the house isn’t for sale. I may sell in the next year and I have high confidence that I’ll walk away with between 300-400k. Much better deal for me than if I had rented over the last 11 years.

I am not disputing the fact that owning is a good financial decision for MOST- but not all- people.

I am disputing that you really gain much with an increase in house price. You don’t get that fiat money creates illusions of wealth when the currency is debased.

[Henrius]

@butler

Real Estate is the greatest asset class because it has utility, can be leveraged, and has tremendous tax benefits. I have created more wealth in my 20 years investing in real estate than I ever could have in the equities market. Of course there are always the GME exception cases…

But it is labor intensive. It requires management. One must interview tenantsOne must occasionally evict tenants. One must get quotes on repairs. One must dispute property tax increases. It is not like owning stocks.

[butler]

@Henrius

But it is labor intensive. It requires management. One must interview tenantsOne must occasionally evict tenants. One must get quotes on repairs. One must dispute property tax increases. It is not like owning stocks.

No argument…its not for everybody. There is no such thing as a free lunch. But thats why the rewards are greater…

[Bears54]

@butler

There is no such thing as a free lunch. But thats why the rewards are greater…

That’s true in life in general, hard work and sacrifices pay off in the long rung.

[BMWMTBer]

@Henrius

@BMWMTBer

That has nothing to do with the topic. Say KC is paying $1000 a month on his mortgage for 20 years vs paying $1000 a month rent for 20 years. Sure, he could bought a lot of gas for his $1000 10 years ago but he’d be evicted from his house or apartment.

KC didn’t buy his house as an investment but presumably it’s one of the smartest things he’s ever done financially. I have over 300k equity in my own house and I absolutely count it as part of my net worth even though the house isn’t for sale. I may sell in the next year and I have high confidence that I’ll walk away with between 300-400k. Much better deal for me than if I had rented over the last 11 years.

I am not disputing the fact that owning is a good financial decision for MOST- but not all- people.

I am disputing that you really gain much with an increase in house price. You don’t get that fiat money creates illusions of wealth when the currency is debased.

Its your axe to grind, we all get it. Nobody cares though because theres nothing we can do about it. Inflation is a thing, so all we can do is attempt to make as much money as possible to offset it. Im up about 500k in my 401k and stocks YTD. Now is your chance to say im not really up that much because blahblahblah.

[Henrius]

@BMWMTBer

Now is your chance to say im not really up that much because blahblahblah.

As you did not disclose your net investment (nor should you) we cannot calculate what percentage gain your have.

This should be obvious to all: the real return on any investment is the nominal return % MINUS the % of inflation. Assuming the rate of inflation is honestly calculated, which is debatable.