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.
Show this thread
-
I did compare the alternative. That’s the point. I’m saying it’s a bad financial decision because there are so many better ones.
Also, that 20% doesn’t include taxes and fees. It also won’t happen each year. Stocks outperformed over 100 years by like 2x. And you can’t click a button and liquidate it for, say, starting a business that can grow faster than 20% a year in value.
-
-
You have to live somewhere. My total payment is less than when I paid rent (more cash to invest today vs then) and my my payment each month is owned vs not owned. The only difference is down payment which can be viewed a low risk “investment”. How’s that not better?
-
Opportunity cost
- 6 more replies
New conversation -
-
-
For most people homes are the only asset they’ll own that (hopefully) appreciates and hedges against inflation. But, for those with more knowledge, I agree that you’re better off elsewhere. Below is a brief summary:https://www.youtube.com/watch?v=0BIozLE1kLg&t=567s …
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Not to mention repairs. Roof, siding, carpet, HVAC, water heater, landscaping, etc
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
In many countries, capital gains are tax free on a primary residence. Other benefits too - banks love property as collateral and for retail investors, they can gear more than any other asset class allowing them to do other things with excess capital like equities, small biz
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
What you mean stocks out performed 2x? Your house is leveraged, right? You put down 10-20% but appreciation is on entire value of the home. You don’t do that with stock. $50k down on a $500k house. House appreciates 10%. You 100% your money. Put 500k in stocks. You made 10%
-
Not to mention equity from those same years vs. rent which is money gone
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.