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.

Anonymous wrote:

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 bought in 2020. 10% down, 2.7% mortgage rates.

My PITI is half what it would cost to rent my house today. I'm laughing all the way to the bank. And the rest of my investments have done extremely well, FYI. Putting 10% down in 2020 was a very wise thing to do.

As I pointed out on the other thread, people trying to claim renting is better are using apples vs oranges to prove their point. Sure, maybe it's cheaper to rent a cheap 1-bedroom versus owning a SFH, but they're also not the same.

Anonymous wrote:We owned two homes and now have decided to rent. I was getting claustrophobic and wanted to move. We also wanted to be able to get up and move to a new location if we wanted. We are committed to five years here for the last one to finish high school.

We pay about 5% of our income to rent. When we were just starting out we used to pay 50% of our income to mortgage, taxes, everything that comes with buying a house. In NYC there are residents who have only ever rented, low income and high income families.

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.

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??

Home prices vary from place to place.
We believe that in areas where there is no land left for new homes, prices will continue to rise.
The tax code and property laws favor homeowners. As long as it stays that way, people will prefer owning and prices will go up even if the population growth slows down.

Anonymous wrote:

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:

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??

Home prices vary from place to place.
We believe that in areas where there is no land left for new homes, prices will continue to rise.
The tax code and property laws favor homeowners. As long as it stays that way, people will prefer owning and prices will go up even if the population growth slows down.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

If that was the case, they would be out of business and there would be fewer homes available for rent because it’s not a lucrative business.

Most landlords are moms and pops. They barely break even.

Anonymous wrote:

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:Why don’t you want to own a home?

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??

Anonymous wrote:

Anonymous wrote:

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.

If that was the case, they would be out of business and there would be fewer homes available for rent because it’s not a lucrative business.

Anonymous wrote:

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.