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GWAE
GWAE
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May 24th, 2019 at 5:39:40 PM permalink
Quote: billryan

You are funny. Imagine you put $400,000 in a box in 2006. Now it is 2019 and the box is worth $380,00. Did you build wealth?
Last time I looked, half the houses in the Valley were worth less in 2018 than they were in 2007. The Dow has gone from mid teens to mid twenties. Gold has jumped from $400 an ounce to well over $1,000. Meanwhile, a person with a paid off house in 2007 has not seen a dollar of appreciation in their biggest asset in over a decade.
Diversification is a way you build wealth. Multiple income streams without being dependent on any one. Home ownership is a honey trap for many people.



depends on the area I suppose. My parents bought their house in 1997 for $62k. It is a 3 bedroom ranch on a decent sized cul de sac lot. they were assessed at 219k a few years ago for taxes but a similar house up the street sold for 285k last month.

We bought our house for 85k 6 years ago in the number 5 school district in the state. The average house in this school district sells for over 500k. Our house is a 2 bedroom smallish house with an acre of land but it sits on a hill with a really crappy driveway which is what kept the price down. We could probably sell our house today for 110k without a problem since we did some land improvements. in 10 years I bet the house will be near 150.
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AxelWolf
AxelWolf
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May 24th, 2019 at 5:41:30 PM permalink
Quote: billryan

You are funny. Imagine you put $400,000 in a box in 2006. Now it is 2019 and the box is worth $380,00. Did you build wealth?
Last time I looked, half the houses in the Valley were worth less in 2018 than they were in 2007. The Dow has gone from mid teens to mid twenties. Gold has jumped from $400 an ounce to well over $1,000. Meanwhile, a person with a paid off house in 2007 has not seen a dollar of appreciation in their biggest asset in over a decade.
Diversification is a way you build wealth. Multiple income streams without being dependent on any one. Home ownership is a honey trap for many people.

If you want to cherry-pick the year of purchase then I don't know what to say. I could come back with...what if you bought in 2012 or let's go back to 1940. Prices may go up and down, however, over the long run, the value of real estate seems to go up. There are many other benefits as well.

I am open to hearing why owning your own house and investing in real estate is a bad idea, under normal circumstances.
♪♪Now you swear and kick and beg us That you're not a gamblin' man Then you find you're back in Vegas With a handle in your hand♪♪ Your black cards can make you money So you hide them when you're able In the land of casinos and money You must put them on the table♪♪ You go back Jack do it again roulette wheels turinin' 'round and 'round♪♪ You go back Jack do it again♪♪
Rigondeaux
Rigondeaux
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MaxPen
May 24th, 2019 at 6:14:24 PM permalink
It could go down by half. But the value of all your rent receipts will still be zero. Whatever the kids inherit will be more than that

And if you are there for the long haul, it doesn't matter that much what the market price is at a given moment. You got a place you like and you'll hopefully wind up owning it.
terapined
terapined
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May 24th, 2019 at 6:30:10 PM permalink
I think I am doing ok
Bought at 150k 2003
Went down to 100k during the housing crisis
Currently Zillow has me at 242k
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billryan
billryan
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May 24th, 2019 at 7:07:10 PM permalink
Quote: terapined

I think I am doing ok
Bought at 150k 2003
Went down to 100k during the housing crisis
Currently Zillow has me at 242k



So in 16 years, it's gone up 65%. Stocks have gone up 400% since then. 150K in 2003 would have grown to about 600K. Even if you had been paying $1,000 a month for rent, you'd have about $400,000 in cash with no debt. You have something worth 242K if you can get that price. Expect a bit less, minus whatever you still owe. How many years are left on your mortgage?
As you said, you did ok. But you could have done better. Had you rented until now under the circumstances described, you could buy your house today for cash and have $150,000 in the bank, or hopefully invested in things that will grow.
Real estate can be a great way to build wealth. Just not a single family home, bought to live in.
The difference between fiction and reality is that fiction is supposed to make sense.
AxelWolf
AxelWolf
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May 24th, 2019 at 7:49:42 PM permalink
Quote: billryan

So in 16 years, it's gone up 65%. Stocks have gone up 400% since then. 150K in 2003 would have grown to about 600K. Even if you had been paying $1,000 a month for rent, you'd have about $400,000 in cash with no debt. You have something worth 242K if you can get that price. Expect a bit less, minus whatever you still owe. How many years are left on your mortgage?
As you said, you did ok. But you could have done better. Had you rented until now under the circumstances described, you could buy your house today for cash and have $150,000 in the bank, or hopefully invested in things that will grow.
Real estate can be a great way to build wealth. Just not a single family home, bought to live in.

And in only 10 years BTC has gone up about 7,000 percent. And You didn't even have to buy it, you could have just used a PC and mined a bunch.

I would guess that real estate is much safer than the market. People probably understand real estate better than the market and they have something that they can touch, feel and use.

Don't forget, Trump will eventually destroy the economy, so it's probably better to own some land and a house than some worthless stocks.
♪♪Now you swear and kick and beg us That you're not a gamblin' man Then you find you're back in Vegas With a handle in your hand♪♪ Your black cards can make you money So you hide them when you're able In the land of casinos and money You must put them on the table♪♪ You go back Jack do it again roulette wheels turinin' 'round and 'round♪♪ You go back Jack do it again♪♪
RS
RS
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May 24th, 2019 at 11:56:40 PM permalink
March 2010, BTC was worth $0.003 (3/10'ths of a penny). Had you invested $300 in it and sold on Dec. 17, 2017, you'd have seen a 659,433,333% increase and you'd have had $1.97 billion.

Sell your homes, sell your stocks, sell everything you have and buy bitcoin!


For real though, buy bitcoin.
djatc
djatc
Joined: Jan 15, 2013
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May 25th, 2019 at 2:32:51 AM permalink
jAnUaRy 2017, BiTcOnNeCt WaS wOrTh $0.156 (15/100th Of A dOlLaR). hAd YoU iNvEsTeD $300 iN It AnD sOlD oN dEc. 28, 2017, YoU'd HaVe SeEn A 2686.92% iNcReAsE aNd YoU'd HaVe HaD $806,078.

SeLl YoUr HoMeS, sElL yOuR sToCks, SeLl EvErYtHiNg YoU hAvE aNd BuY bItCoNnEcT!


FoR rEaL tHoUgH, bUy BiTcOnNeCt.



millenial edition edit
Last edited by: djatc on May 25, 2019
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RS
RS
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May 25th, 2019 at 2:44:40 AM permalink
Quote: djatc

January 2017, Bitconnect was worth $0.156 (15/100th of a dollar). Had you invested $300 in it and sold on Dec. 28, 2017, you'd have seen a 2686.92% increase and you'd have had $806,078.

Sell your homes, sell your stocks, sell everything you have and buy bitconnect!


For real though, buy bitconnect.



odiousgambit
odiousgambit
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May 25th, 2019 at 5:12:16 AM permalink
It's hard to evaluate owning your own home in terms of its investment value [as opposed to investing in real estate generally]

*if your mortgage payment isn't more or much more than paying rent, that's a nice starting position for the argument for buying. If you haven't been a renter for a while, think back to those days when they kept raising the rent too. A mortgage payment stays the same excepting things added to it like real estate tax. Yet experts say at times renting is better , at times buying is better.

*you have many expenses with owning your home, making it hard to compare to other investments

*you have enormous leverage when you have a mortgage. You can't buy $400k worth of stocks and say "here's my 10% or less down" for it like you can with a mortgage. And a mortgage is immune to margin calls unlike buying stocks on margin - nor is the interest ever low like a mortgage can be. This is what leads the guy who owned his home for 40 years to say "best investment I ever had" even when the return maybe only matched inflation - the leverage was the key to the whopping profit.
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder

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