Reply to Are any of you MF’s investing in anacostia?

Forum Index » Real Estate

Reply to "Are any of you MF’s investing in anacostia?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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). [/quote]

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.[/quote]

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. [/quote]

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. [/quote]

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. [/quote]

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.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics