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][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]

[b]No one needed 200K to buy a home in DC in 1985.[/b][/quote]

Pick whatever number you want to start with. That doesn't change the very basic math that real estate involves a loan with significant interest, annual tax payments, annual insurance payments, and upkeep. Stocks, ETFs, and mutual funds are far more efficient and cheap. [/quote]

I just plugged the actual numbers from my parents' 1985 AU Park house into the NYT buy vs. rent calculator.  $125,000 house, 12.85% mortgage, 20% down payment, using the actual DC real estate and rent growth numbers.

The numbers don't lie, in order to come out ahead not buying in 1985 you would have had to find a 3br SFH in AU Park for rent in 1985 for less than $478 per month. Considering that was about half what a mortgage cost back then...good luck.  But in case you want to try to prove me wrong, the DC public library lets you search through all the old issues of the Washington Post. Find me a 3br SFH in AU Park for $478 a month and I'll eat my words. Otherwise, for the love of god stop talking nonsense.

[/quote]

First, you come off as unreasonably angry and aggressive. Second, you keep changing your arguments. From the standpoint of renting or buying for the purpose of housing, the numbers are usually a wash (your analysis avoids taking into account all the costs associated with owning a house). However, that has not been your argument. You have been arguing that real estate, specifically funded by a mortgage, is a better investment than the stock market. That argument doesn't hold water. Rather than make any concession, you get angry and set up a strawman argument. Any who, my 5 year does a better job making a persuasive argument than you do. [/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