Are any of you MF’s investing in anacostia?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No. I buy real estate to enjoy NOW. I buy stocks for long-term wealth. Stocks don't need maintenance, repairs, and property managers. I will never invest in real estate. Too much trouble (my MIL and BILs all did this for many years).

This is truly the best answer.

95% of the times, homes are horrible investments. People only think they are good because they live in them for so long.

If I bought my home for $200k in 1985 and it's now worth 1.5M that sounds great but its only 5.44% BEFORE taxes, insurance, interest.

1/2 of the S&P 500.

Yeah but did you have $200k in cash in 1985 when you bought your house or did you put $40k down and finance the rest? If the latter, then it’s not a fair comparison to putting $200k in the S&P in 1985 since you didn’t actually have that money to invest.

And that's the beauty of the stock market. Instead of putting a large amount of money that most young people do not have, into one house basket, you can place a small amount of money in several different stock baskets.

There is a much lower barrier to entry and the returns are on average higher. Win-win.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No. I buy real estate to enjoy NOW. I buy stocks for long-term wealth. Stocks don't need maintenance, repairs, and property managers. I will never invest in real estate. Too much trouble (my MIL and BILs all did this for many years).

Me again. The house I live in close to downtown Bethesda has increased 75% in value since we bought it 10 years ago. But we bought it for the short commute and good schools.

My house EOTR increased by 80% in the 6 years I owned it, and I sold it and bought a house in falls church.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No. I buy real estate to enjoy NOW. I buy stocks for long-term wealth. Stocks don't need maintenance, repairs, and property managers. I will never invest in real estate. Too much trouble (my MIL and BILs all did this for many years).

This is truly the best answer.

95% of the times, homes are horrible investments. People only think they are good because they live in them for so long.

If I bought my home for $200k in 1985 and it's now worth 1.5M that sounds great but its only 5.44% BEFORE taxes, insurance, interest.

1/2 of the S&P 500.

But you bought it with money you did not have. You got a loan. You used leverage. You don’t get a loan to invest in the stock market. That is the difference and makes real estate a sweet deal.

A 30 year fixed rate mortgage was 12% in 1985, so that means you would have paid $650K in interest on a $200k mortgage during the life of that mortgage. That is the difference and makes the stock market a sweet deal.

[Anonymous]

I bought my home in Anacostia 18 years ago. I was already living in the neighborhood 3 years prior to that.

[Anonymous]

Anonymous wrote:I bought my home in Anacostia 18 years ago. I was already living in the neighborhood 3 years prior to that.

^This man is an Anacostia OG 💯.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No. I buy real estate to enjoy NOW. I buy stocks for long-term wealth. Stocks don't need maintenance, repairs, and property managers. I will never invest in real estate. Too much trouble (my MIL and BILs all did this for many years).

This is truly the best answer.

95% of the times, homes are horrible investments. People only think they are good because they live in them for so long.

If I bought my home for $200k in 1985 and it's now worth 1.5M that sounds great but its only 5.44% BEFORE taxes, insurance, interest.

1/2 of the S&P 500.

Yeah, but here’s the thing 96% of the statistics you see on message boards are total bullshit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No. I buy real estate to enjoy NOW. I buy stocks for long-term wealth. Stocks don't need maintenance, repairs, and property managers. I will never invest in real estate. Too much trouble (my MIL and BILs all did this for many years).

This is truly the best answer.

95% of the times, homes are horrible investments. People only think they are good because they live in them for so long.

If I bought my home for $200k in 1985 and it's now worth 1.5M that sounds great but its only 5.44% BEFORE taxes, insurance, interest.

1/2 of the S&P 500.

But you bought it with money you did not have. You got a loan. You used leverage. You don’t get a loan to invest in the stock market. That is the difference and makes real estate a sweet deal.

A 30 year fixed rate mortgage was 12% in 1985, so that means you would have paid $650K in interest on a $200k mortgage during the life of that mortgage. That is the difference and makes the stock market a sweet deal.

There’s literally no person alive who took their 30 year mortgage from 1985 @ 12% through to maturity. So no one paid that much in interest.

Unless you’re living for free somewhere, a home securing a mortgage is the best investment you can find. First, it’s a hedge against inflation, second, it allows you to leverage , which multiplies your gains over what you would make if you invested your down payment.

Sure, you may be thinking “yeah, but if I invested the same amount as my mortgage payment I’d be ahead” well that’s where the living for free and inflation hedge come in.

Truly, the people who say buying a house is nearly always a bad idea, bad investment, etc are some of the most foolish out there. Our entire system is geared toward making home ownership a very attractive financial decision and very easy to do.

[Anonymous]

Home ownership is a way to become solidly middle class.

Stock, either via the public markets or through ownership in your company, is the is the easiest way to get wealthy.

There are clearly anomalies but the vast majority of residential real estate is a sub par investment. The carrying costs are absurd - maintenance, upgrades, taxes, insurance, etc.

Even factoring in leverage, they are far worse than the public markets.

[Anonymous]

Anonymous wrote:Home ownership is a way to become solidly middle class.

Stock, either via the public markets or through ownership in your company, is the is the easiest way to get wealthy.

There are clearly anomalies but the vast majority of residential real estate is a sub par investment. The carrying costs are absurd - maintenance, upgrades, taxes, insurance, etc.

Even factoring in leverage, they are far worse than the public markets.

This is truly the dumbest take in a long line of dumb takes. When you rent, you’re still paying property taxes, maintenance, hazard insurance - they’re just built into the rent. Rent goes up, 30 year mortgage payments don’t.

Stock picking is gambling - it is not “easy”. And you won’t get wealthy putting a down payment into index funds and then rent for 30 years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No. I buy real estate to enjoy NOW. I buy stocks for long-term wealth. Stocks don't need maintenance, repairs, and property managers. I will never invest in real estate. Too much trouble (my MIL and BILs all did this for many years).

This is truly the best answer.

95% of the times, homes are horrible investments. People only think they are good because they live in them for so long.

If I bought my home for $200k in 1985 and it's now worth 1.5M that sounds great but its only 5.44% BEFORE taxes, insurance, interest.

1/2 of the S&P 500.

But you bought it with money you did not have. You got a loan. You used leverage. You don’t get a loan to invest in the stock market. That is the difference and makes real estate a sweet deal.

A 30 year fixed rate mortgage was 12% in 1985, so that means you would have paid $650K in interest on a $200k mortgage during the life of that mortgage. That is the difference and makes the stock market a sweet deal.

There’s literally no person alive who took their 30 year mortgage from 1985 @ 12% through to maturity. So no one paid that much in interest.

Unless you’re living for free somewhere, a home securing a mortgage is the best investment you can find. First, it’s a hedge against inflation, second, it allows you to leverage , which multiplies your gains over what you would make if you invested your down payment.

Sure, you may be thinking “yeah, but if I invested the same amount as my mortgage payment I’d be ahead” well that’s where the living for free and inflation hedge come in.

Truly, the people who say buying a house is nearly always a bad idea, bad investment, etc are some of the most foolish out there. Our entire system is geared toward making home ownership a very attractive financial decision and very easy to do.

Most of your arguments are weak. The best argument is that when monthly rent and monthly PITI are approximately equal, home ownership is probably better. Look, I own a home, but I don't fool myself into believing that its a better investment than the stock market.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No. I buy real estate to enjoy NOW. I buy stocks for long-term wealth. Stocks don't need maintenance, repairs, and property managers. I will never invest in real estate. Too much trouble (my MIL and BILs all did this for many years).

This is truly the best answer.

95% of the times, homes are horrible investments. People only think they are good because they live in them for so long.

If I bought my home for $200k in 1985 and it's now worth 1.5M that sounds great but its only 5.44% BEFORE taxes, insurance, interest.

1/2 of the S&P 500.

The next decade is expected to have less than historical stock market growth while housing supply is at an all time low. Demand is increasing. RE is a better place for your cash right now than stocks due to inflation. And then when the Republicans finally push us off the fiscal cliff by defaulting on our debt then I still own a tangible asset that people will have to pay me to rent. Try doing that with the screenshot of your trading account balance.

[Anonymous]

What does “MF” mean? The OP is asking if anyone invested in RE in a small area in DC. She is not asking for a lesson on investment returns from stock or RE.

[Anonymous]

Anonymous wrote:What does “MF” mean? The OP is asking if anyone invested in RE in a small area in DC. She is not asking for a lesson on investment returns from stock or RE.

Mother F’er.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No. I buy real estate to enjoy NOW. I buy stocks for long-term wealth. Stocks don't need maintenance, repairs, and property managers. I will never invest in real estate. Too much trouble (my MIL and BILs all did this for many years).

This is truly the best answer.

95% of the times, homes are horrible investments. People only think they are good because they live in them for so long.

If I bought my home for $200k in 1985 and it's now worth 1.5M that sounds great but its only 5.44% BEFORE taxes, insurance, interest.

1/2 of the S&P 500.

The next decade is expected to have less than historical stock market growth while housing supply is at an all time low. Demand is increasing. RE is a better place for your cash right now than stocks due to inflation. And then when the Republicans finally push us off the fiscal cliff by defaulting on our debt then I still own a tangible asset that people will have to pay me to rent. Try doing that with the screenshot of your trading account balance.

No it's not.

Equity markets are up 10% + over the last six months. Inflation is a fraction of that.

The numbers will never be on your side. Keep thinking your illiquid asset that costs 15k + a year in property taxes, insurance, upkeep, blah blah will make you rich.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No. I buy real estate to enjoy NOW. I buy stocks for long-term wealth. Stocks don't need maintenance, repairs, and property managers. I will never invest in real estate. Too much trouble (my MIL and BILs all did this for many years).

This is truly the best answer.

95% of the times, homes are horrible investments. People only think they are good because they live in them for so long.

If I bought my home for $200k in 1985 and it's now worth 1.5M that sounds great but its only 5.44% BEFORE taxes, insurance, interest.

1/2 of the S&P 500.

Yeah, but here’s the thing 96% of the statistics you see on message boards are total bullshit.

Ah, it's bullshit guy again. It's sad when all you can retort is a swear word. We know you're salty you didn't invest in the stock market and now feel the need to dump on all posters who do. Too bad for you.