Anonymous wrote:

Anonymous wrote:U want to have some diversification, especially in the future as tax rules change. I’d put a significant amount in a real estate focused investment vehicle like an apartment REIT, and the rest in a standard equity fund, although you’ll never come anywhere close to the return on equity from a down payment on a mortgaged property.

Truth is return on downpayment depends on mortgage rate. At current rates it’s way under 7% of S&P historical return

I was glad I didn’t buy in 2020 even at low interest rate . My market returns afford me now buy a house all cash.

I’m a bit curious. What is your market return from 2020 to now?

Anonymous wrote:

Anonymous wrote:I just want someone to explain to me why do will we expect home prices to keep going up.

If people are having less children and from 2030 , boomers will start listing their home en masse significantly increasing supply, how are home prices going to continue going up like they have been in the past?

Do we really think 1 and 2 person households will prefer owning over renting??

People like owning their homes. It’s a core tenet of the American Dream.

Yeah we need to review what constitute the "American Dream" then. So many homeowners are so broke that they keep postponing the most basic maintenance.

Anonymous wrote:

Anonymous wrote:Owning a home is not a financial investment anymore. Definitely take the 3.3 if you dont want a home. Start slowly investing in other areas, do your research and diversify.

Good for you for knowing this. Home ownership is only valuable if you wish to stay put and have security. Its no longer a way to create wealth. So so so many costs outside of the actual house value. Most break even but we aren't making money.

I support this approach! As a landlord that started slow and steady I love me some dedicated renters. i’m at the point now where every 3 years the cash flow from my rentals builds up enough cash for a very large down payment on another rental.

Most landlords lose money, but sadly they don't know it. Good for you for doing well. The truth is most barely break even.

Anonymous wrote:I just want someone to explain to me why do will we expect home prices to keep going up.

If people are having less children and from 2030 , boomers will start listing their home en masse significantly increasing supply, how are home prices going to continue going up like they have been in the past?

Do we really think 1 and 2 person households will prefer owning over renting??

People like owning their homes. It’s a core tenet of the American Dream.

I just want someone to explain to me why do will we expect home prices to keep going up.

If people are having less children and from 2030 , boomers will start listing their home en masse significantly increasing supply, how are home prices going to continue going up like they have been in the past?

Do we really think 1 and 2 person households will prefer owning over renting??

Anonymous wrote:Owning a home is not a financial investment anymore. Definitely take the 3.3 if you dont want a home. Start slowly investing in other areas, do your research and diversify.

Good for you for knowing this. Home ownership is only valuable if you wish to stay put and have security. Its no longer a way to create wealth. So so so many costs outside of the actual house value. Most break even but we aren't making money.

I support this approach! As a landlord that started slow and steady I love me some dedicated renters. i’m at the point now where every 3 years the cash flow from my rentals builds up enough cash for a very large down payment on another rental.

Owning a home is not a financial investment anymore. Definitely take the 3.3 if you dont want a home. Start slowly investing in other areas, do your research and diversify.

Good for you for knowing this. Home ownership is only valuable if you wish to stay put and have security. Its no longer a way to create wealth. So so so many costs outside of the actual house value. Most break even but we aren't making money.

VOO or VTI and chill. This is a tried and true path to wealth. Don’t panic when the market drops and you’ll be rewarded.

Anonymous wrote:U want to have some diversification, especially in the future as tax rules change. I’d put a significant amount in a real estate focused investment vehicle like an apartment REIT, and the rest in a standard equity fund, although you’ll never come anywhere close to the return on equity from a down payment on a mortgaged property.

Truth is return on downpayment depends on mortgage rate. At current rates it’s way under 7% of S&P historical return

I was glad I didn’t buy in 2020 even at low interest rate . My market returns afford me now buy a house all cash.

OP - you are not going to be behind single family RE home prices if you learn how to invest and do it well.

Only multi unit residential and commercial projects return well.

Your return on downpayment for a single family at current mortgage rates is 5% max. You leave all profits with developers and agents unless you develop it yourself from bare bones

You haven't invested at all? Everything is in the savings? So, you don't even know how you'd feel if the $150k was $140k the next day?
I guess start learning about investing.
There are dividend stocks and ETF's that would pay you over 4%, but they can also go down in value on the paper. It's not a big deal though if you invested for long term.
I'm also happy renting. About to get my rent lowered as owners struggle to sell and rent their homes around me. Plenty of homes in the family in my retirement location.
Not everything in the market is expensive. Find the value stocks.

U want to have some diversification, especially in the future as tax rules change. I’d put a significant amount in a real estate focused investment vehicle like an apartment REIT, and the rest in a standard equity fund, although you’ll never come anywhere close to the return on equity from a down payment on a mortgaged property.

You are wanting a simple equation to answer this question. There isn't one. You can't predict the stock market (especially now) and you can't predict what appreciation (or the opposite) in real estate. I think there is benefit to real estate in that 1) you actually have a physical thing -- the markets all tank and the world goes to hell, then you can at least live on it, it didn't disappear into the either, and 2) it's good to be diversified, to have some real estate in addition to other investments.

That said, you say you don't want to own a home. That is probably what should guide you right now. It is a colossal pita at times; maintenance is no joke and expensive.

Why don’t you want to own a home?

We have $150,000 available for a down payment for a home, separate from regular savings and emergency savings. We really don't want to own a home, and would like to instead invest this money. I understand the market to be very expensive at this point.

Our HYSA is getting us 3.3%. Any thoughts on how we should invest this money, to beat our 3.3% and come out ahead of purchasing a home?