If you’re in the wealth accumulation phase of your life, I think buying a home is a terrible decision (in most cases). Prove me wrong. Seriously. I’m not being rhetorical. I want to see if there’s math that says otherwise.
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Buying these for emotional reasons is great. Be happy. But so many justify it financially. And I don’t get that.
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Also: I’m not close to an expert. Just doing lots of high level math.
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Humans justify everything they do on purpose as a win. Homes to live in are terrible investments. I know because I live in one.
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They’re not maximum return/producing. But they are well on the efficient frontier during wealth accumulation phase. John D Rockefeller was always a homeowner.
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LBO on stable asset with 80% LTV with no track record and high likelihood of equity appreciation from debt pay down and rising prices. You buy the right to that wealth creation for minimal equity down and low interest rates
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I agree in theory and I wish the math agreed with that analysis but fed manipulation of rates and govt policies incentivize people to borrow. This also inflates house values.
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They make it easy for individuals to over-leverage to buy a house. But if you want to start a business and take real risk that is productive and good for society, good luck finding cheap, easy bank financing
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I'm in Singapore for context, where land is scarce and property historically considered a sure-win. We bought our apartment in 2007 for $371,000, and sold it in 2016 for $700,000.
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I mean ppl in sf aren’t saying that if they bought 15 years ago
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