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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Key answer is it depends: https://youtu.be/F3PIObPVRPk This is the best financial breakdown I’ve seen. I bought and I would do it again (how I measure success). There’s nothing like not needing to ask permission to do whatever you want in your home.
I think buying so you can do what you want is an amazing reason. But still don’t see how the average beats the average of other investments that are equal or less work if you’re comparing it based on accumulating money.
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Sam please give example of other investments that are better can be put to test by independently finding out those that invested in other thing. Thanks for sharing this notion please list 4he investments category
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S&p500, your own business, multi family
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The key difference from other investments is leverage. You can’t put down 10% in an index fund but keep 100% of the upside (often 15%+ returns) The other is renovations that give you 2:1 returns on top of traditional appreciation. These alone can help outperform other investments
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And that’s just for primary residences. If it’s a rental you can add cash flow, depreciatiation, expense deductions, and creative financing (BRRR method, cash out refi, etc.) to the levers you can pull to outperform other asset classes.
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Prob missing this somewhere, but where’s the calculus that doesn’t rely on rent vs mortgage payment. Bc true equation is Net(investment capital, appreciation/depreciation, -rent) vs net(downpayment, - interest, +/- tax, +/- change in home equity value)
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I.e., most are missing the fact that rent is a serious $ sunk. Burning money as one said.
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