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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Our house will appraise for $50K more than we paid for it 5 years ago(not including our interior updates). Our rental market would be $1400+ a month for the same size house. That is our house payment.
But you could get that same thing with s&p500, no? It averages 8% annually for past 60 years.pic.twitter.com/vmfRPlpf5z
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So as they assess every 3 years on fudged market comps, your home value increases thereby increasing your equity just so they can get more property taxes. That's a guarantee. I bought my house in 2017 and have gained $20k in equity by paying my mortgage...
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an additional $38k from property tax appraisal adjustments and another $25k because they built a house on the next plot over (same exact sq. ft. and style) and sold it for $100k more than what I paid for my house. If I put it on the market now, I'm positive I could make...
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I didn’t invest $50,000 in my home. We put like $12,000 down. In retrospect, we just bought because renting was literally the same price. We figured we would just get our money back. Turns out we will spend net some money to put into our dream home.
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8% is on the low side for me. I invest my cash in businesses that I know will net me at least 15% every year. I also own a marketing agency, so I can leverage that in businesses I invest in.
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$100k more than what I paid for it. That increase over 3 years is quite profound compared to the S&P where my money is at risk with zero insurance.
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It’s all about the right market. Housing in Texas is pretty cheap compared to a lot of states. Also having a booming economy with big businesses moving to Texas helps drive demand. Making housing appreciate at a faster rate.
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Because companies enter and leave S&P regularly. One company A get out of business, investor lose money and in S&P get replaced by another growing company B. Doesn’t affect S&P. What if you have put money and company A ? It works like this the S&P metrics ?
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There is the rent where you live and own what you rent mentality. That usually makes more sense for people that own businesses.
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Yes, but what you are missing is that you would spend that money on rent instead, not stocks. Not saying buying is always better. Too many factors to generalize.
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