How is buying a house, a great investment?

Collapse
X
Collapse
 
  • Page of 5
  • Time
  • Show
Clear All
new posts
Previous 1 2 3 4 5 template Next
  • RawAlex
    So Fucking Banned
    • Oct 2003
    • 9465
    #51
    Even with that 10% drop, I would assume by now that those properties have picked that 10% back up... or will in the near future.

    Alex one very important thing: If you are buying a house to live in yourself, and you stay there more than two years, all of the money you get when you sell it is tax free (provided it is a single family home, not a duplex or other form of revenue property). Capital gains on stocks if you were to sell 300k worth of stocks in a year would hurt.

    At bare minimum, make sure you own where you live, even if it is a condo or whatever. That is effectively a free investment that will pay you in the end. Most "old family wealth" comes from the asset of the family home and revenue properties.

      Comment

      • wyldworx
        So Fucking Banned
        • Dec 2006
        • 5144
        #52
        Originally posted by RawAlex
        Even with that 10% drop, I would assume by now that those properties have picked that 10% back up... or will in the near future.

        Alex one very important thing: If you are buying a house to live in yourself, and you stay there more than two years, all of the money you get when you sell it is tax free (provided it is a single family home, not a duplex or other form of revenue property). Capital gains on stocks if you were to sell 300k worth of stocks in a year would hurt.

        At bare minimum, make sure you own where you live, even if it is a condo or whatever. That is effectively a free investment that will pay you in the end. Most "old family wealth" comes from the asset of the family home and revenue properties.

        absolutely, that is given, but it is a rigourous experience nevertheless...

          Comment

          • inthecrack
            Confirmed User
            • May 2006
            • 533
            #53
            See Donald Trump.
            High on crack.


            www.inthecrack.com

              Comment

              • shermo
                #54
                I have a place to live, a nice yearly tax write off, appreciation, no idiot neighbors that trash the apartments in which they lease, and there were no renovations which I had to make, as I bought it 2 years old and it was completely upgraded from the floors, to the paint,the upgraded cabinets, to the back yard.

                Sure I pay a little more than I would if I lived in an apartment, but the perks outweigh the downfalls in my case. I love my home, and investing in the happiness of myself and my wife is good enough for me. Selling at a profit in 5-10 years is also a nice perk, and I wouldn't necessarilly have to buy up. I'd probably actually move from Vegas to a smaller city, thus making my real estate money work for me.

                  Comment

                  • TigerDragon
                    Confirmed User
                    • Dec 2006
                    • 1349
                    #55
                    very interesting thread

                      Comment

                      • goldmine
                        Confirmed User
                        • Jan 2005
                        • 952
                        #56
                        actually buying a Land/house is always a win win situation. As mentioned in Superman: The return, land is more valuable than gold because its constantly shrinking. No one's manufacturing land.

                        I remember here in Asia before a certain volcano errupted last 1991 and the price of land in nearby area of the volcano dropped to $.10/sq meters (not sq/ft!) guess what, after only 15 yrs and commercialization, the price of land fly to around $500/sq feet. Wow.

                          Comment

                          • ADL Colin
                            Too lazy to set a custom title
                            • Feb 2001
                            • 11929
                            #57
                            Originally posted by goldmine
                            actually buying a Land/house is always a win win situation. As mentioned in Superman: The return, land is more valuable than gold because its constantly shrinking. No one's manufacturing land.
                            How about if you bought land in Tokyo in 1990?


                            Adult Date Link - $50 PPS starting NOW! -- good and JUICY!

                            skype = "adultdatelink"

                              Comment

                              • goldmine
                                Confirmed User
                                • Jan 2005
                                • 952
                                #58
                                Originally posted by ADL Colin
                                How about if you bought land in Tokyo in 1990?
                                dunno... but i still think the price of land in tokyo last 1990 will be lower than the price on 2020

                                  Comment

                                  • V_RocKs
                                    Damn Right I Kiss Ass!
                                    • Nov 2003
                                    • 32451
                                    #59
                                    Cost for me to rent, $2500 a month at $30,000 a year.
                                    Cost for me to buy this same house, $3500 a month at $42,000 a year.

                                    For the first 5 years all of the money goes towards interest only.

                                    So while the market is stagnant or dipping I am screwed. Had I bought in 2003 my monthly would have been $1800 and the price would have appreciated 2 and 1/2 times. Which means, I would have made a lot of money on paper (or if I sold it)...

                                    So buying for me would be stupid.

                                      Comment

                                      • ADL Colin
                                        Too lazy to set a custom title
                                        • Feb 2001
                                        • 11929
                                        #60
                                        Originally posted by goldmine
                                        dunno... but i still think the price of land in tokyo last 1990 will be lower than the price on 2020
                                        Is that the criteria for a "win/win" investment? That the price is higher by any amount 30 years later?


                                        Adult Date Link - $50 PPS starting NOW! -- good and JUICY!

                                        skype = "adultdatelink"

                                          Comment

                                          • Quotealex
                                            Confirmed User
                                            • Sep 2001
                                            • 6265
                                            #61
                                            Originally posted by DareRing
                                            This is Darwin Award worthy advice. Sorry, nothing personal, I just think it's dangerous to promote owning IOUs before essential real-world assets. Secure a place to live first, then go ahead and gamble after you're debt free. Especially if you're supporting a family, anything less is irresponsible.
                                            Alot of people thinks that buying assets other than real estate (i.e. a house to live in) is gambling! Real estate also fluctuate in price, not always positively too; and the reason people don't notice it, is because it's not as liquid as other investment vehicles.

                                            I'm not saying you shouldn't buy a house if you can afford one. I just think it's not as good an investment as people think it is.

                                              Comment

                                              • bausch
                                                Confirmed User
                                                • Jul 2006
                                                • 3017
                                                #62
                                                No, a house is not a good investment at all. Just keep on spending your money at the strip club and eating the buffet at the tittie bar. That's the way to go!

                                                  Comment

                                                  • Quotealex
                                                    Confirmed User
                                                    • Sep 2001
                                                    • 6265
                                                    #63
                                                    In the same 40 years, Berkshire Hathaway shares have been increasing annually at 24%. A stock bought at 8$ back in 1962 would be worth $96,000 per share. Imagine if they bought just 100 share instead of a house how well off their children would be today


                                                    Originally posted by Mutt
                                                    li know so many of my friends whose parents were middle class people - just normal middle management jobs, good blue collar jobs, small businesses - now those parents are dying off. the family homes they bought in the 50's and 60's for 20-40,000 dollars 40 years later are several hundred thousand dollars, some close to a million dollars in the right neighborhoods. my best friend's parent bought theirs in the 60's for 40K and it's now worth at least 2 or 3 million - whoever buys it when my friend's mom dies or has to get out will knock it down for sure.

                                                      Comment

                                                      • Quotealex
                                                        Confirmed User
                                                        • Sep 2001
                                                        • 6265
                                                        #64
                                                        I do own a house and have other "real" and "IOU" investments (as DareRing would put it) but none of it bring me as much pleasure than spending some of my leasure time at strip clubs

                                                        Originally posted by bausch
                                                        No, a house is not a good investment at all. Just keep on spending your money at the strip club and eating the buffet at the tittie bar. That's the way to go!

                                                          Comment

                                                          • bausch
                                                            Confirmed User
                                                            • Jul 2006
                                                            • 3017
                                                            #65
                                                            Originally posted by Alex from Montreal
                                                            I do own a house and have other "real" and "IOU" investments (as DareRing would put it) but none of it bring me as much pleasure than spending some of my leasure time at strip clubs
                                                            Sorry, it's just that you talked about strip clubs so much in previous threads that I will forever automatically associate your nick with strip clubs, it's ingrained in my brain and won't get out. So every time you post it's hard for me to resist
                                                            adding in a sarcastic remark about strip clubs and eating the buffet there. I really can't help myself.

                                                              Comment

                                                              • ADL Colin
                                                                Too lazy to set a custom title
                                                                • Feb 2001
                                                                • 11929
                                                                #66
                                                                Originally posted by Alex from Montreal
                                                                I do own a house and have other "real" and "IOU" investments (as DareRing would put it) but none of it bring me as much pleasure than spending some of my leasure time at strip clubs
                                                                F-A-C-T. Time spent at strip clubs has good ROI.


                                                                Adult Date Link - $50 PPS starting NOW! -- good and JUICY!

                                                                skype = "adultdatelink"

                                                                  Comment

                                                                  • ADL Colin
                                                                    Too lazy to set a custom title
                                                                    • Feb 2001
                                                                    • 11929
                                                                    #67
                                                                    The answer to the question is "it depends". It depends on a lot of things. In which market at what time? Do you have a mortgage? Will your house appreciate faster than your mortgage rate? How much would you have spent on rent elsewhere? What other opportunities do you miss?

                                                                    How much SATISFACTION do you get? If I were willing to rent a smaller place and invest the money in my home elsewhere I would probably end up with greater monetary wealth in the long-run but would lose a lot of satisfaction. The cost of satisfaction with my life is not worth that.


                                                                    Adult Date Link - $50 PPS starting NOW! -- good and JUICY!

                                                                    skype = "adultdatelink"

                                                                      Comment

                                                                      • Quotealex
                                                                        Confirmed User
                                                                        • Sep 2001
                                                                        • 6265
                                                                        #68
                                                                        Originally posted by shermsshack
                                                                        Sure I pay a little more than I would if I lived in an apartment, but the perks outweigh the downfalls in my case. I love my home, and investing in the happiness of myself and my wife is good enough for me. Selling at a profit in 5-10 years is also a nice perk, and I wouldn't necessarilly have to buy up..
                                                                        That a very good justification and the main reason for buying a house.

                                                                        I'm glad you realise you are paying a bit more in owning a house than renting, alot of people can't see that. They think that with rent they are throwing money away altho part of the expenses spend on a house is also thrown away money (i.e. closing costs, interest on mortgage, realty taxes, insurance, mortgage insurance, maintenance, etc.) and they could invested the difference in rent and house cost in other investments.

                                                                          Comment

                                                                          • Quotealex
                                                                            Confirmed User
                                                                            • Sep 2001
                                                                            • 6265
                                                                            #69
                                                                            Originally posted by ADL Colin
                                                                            How much SATISFACTION do you get? If I were willing to rent a smaller place and invest the money in my home elsewhere I would probably end up with greater monetary wealth in the long-run but would lose a lot of satisfaction. The cost of satisfaction with my life is not worth that.
                                                                            Another person that understand the real reason in owning a house

                                                                              Comment

                                                                              • Narfle
                                                                                Confirmed User
                                                                                • Dec 2006
                                                                                • 193
                                                                                #70
                                                                                Originally posted by SomeCreep
                                                                                There is no money in real estate.
                                                                                Tell that to Mr Trump ^^

                                                                                  Comment

                                                                                  • Gnus
                                                                                    Confirmed User
                                                                                    • Feb 2005
                                                                                    • 577
                                                                                    #71
                                                                                    I bought some land in Missouri 5 years ago close to Branson and now I could get 3 times what I paid for it. To me that's a pretty good investment.

                                                                                    Gary
                                                                                    ICQ -73665782
                                                                                    Domains for sale - milfwatch.com $2k, pornnut.com $500, assforu.com $2K, xxxratedonly.com $1K

                                                                                      Comment

                                                                                      • Peaches
                                                                                        Old broad
                                                                                        • Oct 2002
                                                                                        • 13933
                                                                                        #72
                                                                                        Location, location, location.

                                                                                        If you're in a bad location (i.e. bad part of town or even a great part of town where the prices are inflated) you could be in trouble.

                                                                                        The way you finance can also cause you problems, witness those in pain now with their ARMs.

                                                                                        Over the past 25+ years I've been living on my own I've rented if I've KNOWN I was going to stay somewhere less than 3 years. I've heard the "experts" have extended that to 5 years. I do know my house just appraised for more than twice what I paid for it 6 years ago. That makes me happy

                                                                                          Comment

                                                                                          • Peaches
                                                                                            Old broad
                                                                                            • Oct 2002
                                                                                            • 13933
                                                                                            #73
                                                                                            Originally posted by Gnus
                                                                                            I bought some land in Missouri 5 years ago close to Branson and now I could get 3 times what I paid for it. To me that's a pretty good investment.

                                                                                            Gary
                                                                                            It always amazes me that when GFY folks (I swear I don't see it other places) talk about real estate, it's always a house. I've done VERY well on my land purchases, especially those I picked up at auction. I made a sale a few months ago that was 20X what I paid for the property 2 years ago. Yeah, I'm going to get nailed on taxes, but it's still SOME money in my pocket

                                                                                              Comment

                                                                                              • Quotealex
                                                                                                Confirmed User
                                                                                                • Sep 2001
                                                                                                • 6265
                                                                                                #74
                                                                                                Originally posted by Gnus
                                                                                                I bought some land in Missouri 5 years ago close to Branson and now I could get 3 times what I paid for it. To me that's a pretty good investment.
                                                                                                Gary
                                                                                                Buying a land is not exactly the same as a house.

                                                                                                  Comment

                                                                                                  • Ross
                                                                                                    Ik ben een aap
                                                                                                    • Sep 2002
                                                                                                    • 18874
                                                                                                    #75
                                                                                                    I agree with most people here. Buying your own home is not an investment as such. You'll spend a lot of your income decorating, redecorating and on bills and everything else. But its much better to buy your own house than rent from someone else. In the long run your house will eventually be paid off. Therefore the actual "house" you bought becomes worth the time and money. Everything else connected with it is just a lifestyle choice.

                                                                                                      Comment

                                                                                                      • Gnus
                                                                                                        Confirmed User
                                                                                                        • Feb 2005
                                                                                                        • 577
                                                                                                        #76
                                                                                                        Originally posted by Alex from Montreal
                                                                                                        Buying a land is not exactly the same as a house.
                                                                                                        Yes it two completely different things. I was referring to the guy that said there's no money in real estate. I should of done a quote.

                                                                                                        I bought my place I live in now at the same time I bought my land in missouri and the value of it hasn't changed very much but over time I expect it will.

                                                                                                        My dad bought his place in 1965 for $5000 and in the 70's he spent roughly $25,000 to remodeling it and since then he's probably spent around $20,000 in upgrades and what not. Today he could get roughly $200,000 for the same property which he has lived in for over 40 years. To me that's not a bad investment at all. If he wanted to he could sell it and buy some land and build a new house on it for $200,000 that would be bought and paid for. So I would have to yes buying a house would be a long term investment.

                                                                                                        Gary
                                                                                                        ICQ -73665782
                                                                                                        Domains for sale - milfwatch.com $2k, pornnut.com $500, assforu.com $2K, xxxratedonly.com $1K

                                                                                                          Comment

                                                                                                          • Peaches
                                                                                                            Old broad
                                                                                                            • Oct 2002
                                                                                                            • 13933
                                                                                                            #77
                                                                                                            True, the vast majority of RE is long term - that's what people have to accept. Yes, we know about the guy who bought a house, put $X into it and sold it for 100 times $X 6 months later, but that's not the norm. If you're going to move every 3 years, renting is a better bet, IMO. But at some point you have to grow up and not move every 3 years, lol.

                                                                                                            Personally (knock on wood) I've never lost money on RE. Even the 2nd house my ex-husband and I bought that I had to sell at a bargain price to get out of when he left after 6 months of buying it in my name, I broke even on - and that's including all the work we did on it.

                                                                                                              Comment

                                                                                                              • Quotealex
                                                                                                                Confirmed User
                                                                                                                • Sep 2001
                                                                                                                • 6265
                                                                                                                #78
                                                                                                                Originally posted by Gnus
                                                                                                                My dad bought his place in 1965 for $5000 and in the 70's he spent roughly $25,000 to remodeling it and since then he's probably spent around $20,000 in upgrades and what not. Today he could get roughly $200,000 for the same property which he has lived in for over 40 years.
                                                                                                                That's is barely a 10% in annual return, and I didn't even consider the $45,000 he spent in renovation, nor the annual taxes, insurance and maintenance cost he spent throughout the years. If I where to had these expenses, his return would be alot less. He could have easily gotten that 10% return in stocks without paying all those expenses....

                                                                                                                  Comment

                                                                                                                  • Peaches
                                                                                                                    Old broad
                                                                                                                    • Oct 2002
                                                                                                                    • 13933
                                                                                                                    #79
                                                                                                                    Originally posted by Alex from Montreal
                                                                                                                    That's is barely a 10% in annual return, and I didn't even consider the $45,000 he spent in renovation, nor the annual taxes, insurance and maintenance cost he spent throughout the years. If I where to had these expenses, his return would be alot less. He could have easily gotten that 10% return in stocks without paying all those expenses....
                                                                                                                    You're forgetting he would have had to pay rent if he didn't own his own home. Add that into the equation. Even if he was paying an average of $500 a month over 40 years (40 years ago it would have been less and now it would be more) - that's $240K he would have spent out of his pocket. And 10% return backed up by RE instead of stocks a year ain't horrible.

                                                                                                                      Comment

                                                                                                                      • Quotealex
                                                                                                                        Confirmed User
                                                                                                                        • Sep 2001
                                                                                                                        • 6265
                                                                                                                        #80
                                                                                                                        Originally posted by Peaches
                                                                                                                        True, the vast majority of RE is long term - that's what people have to accept. Yes, we know about the guy who bought a house, put $X into it and sold it for 100 times $X 6 months later, but that's not the norm. If you're going to move every 3 years, renting is a better bet, IMO. But at some point you have to grow up and not move every 3 years, lol. .
                                                                                                                        You're right. people tend to bring up success stories to justify their purchase of their house. And is funny how these same people all know someone that lost all their saving "gambling" in stocks

                                                                                                                          Comment

                                                                                                                          • Quotealex
                                                                                                                            Confirmed User
                                                                                                                            • Sep 2001
                                                                                                                            • 6265
                                                                                                                            #81
                                                                                                                            Originally posted by Peaches
                                                                                                                            You're forgetting he would have had to pay rent if he didn't own his own home. Add that into the equation. Even if he was paying an average of $500 a month over 40 years (40 years ago it would have been less and now it would be more) - that's $240K he would have spent out of his pocket. And 10% return backed up by RE instead of stocks a year ain't horrible.
                                                                                                                            That $5,000 in Berkshire Hathaway shares would have made him a multi-millionaire 40 years later and that $240k in rent would have been chump change for him.

                                                                                                                              Comment

                                                                                                                              • Peaches
                                                                                                                                Old broad
                                                                                                                                • Oct 2002
                                                                                                                                • 13933
                                                                                                                                #82
                                                                                                                                Originally posted by Alex from Montreal
                                                                                                                                That $5,000 in Berkshire Hathaway shares would have made him a multi-millionaire 40 years later and that $240k in rent would have been chump change for him.
                                                                                                                                Yes, if only we had all had a crystal ball 40 years ago

                                                                                                                                  Comment

                                                                                                                                  • wyldworx
                                                                                                                                    So Fucking Banned
                                                                                                                                    • Dec 2006
                                                                                                                                    • 5144
                                                                                                                                    #83
                                                                                                                                    how can anyone say that real estate is not a win/win? A very ilogical answer to an obvious question, yes, there is money in real estate, but be WISE. It is really simple, be realistic, weigh up where you are financially and where the marketplace is. Have as big a deposit as you can, and budget for rate rises and maintanance. You will be a winner if you choose the most run-down house in a good street, a sign of immediate capital gains, and if you notice certain trends in social movements, ie. an area may be bringing itself out of "Bronx" status, and not only value for money, but a true investment. There are so many things to take into account, and I couldn't be bothered typing any further.

                                                                                                                                      Comment

                                                                                                                                      • jimthefiend
                                                                                                                                        So Fucking Banned
                                                                                                                                        • Oct 2003
                                                                                                                                        • 18889
                                                                                                                                        #84
                                                                                                                                        No offense but most of the people posting in this thread are clueless. Your home should be your most prized investment. Perhaps not your most profitable one, but still.

                                                                                                                                        Breaking news: Neither your TGP or your PS3 are considered a serious long term investment.
                                                                                                                                        Last edited by jimthefiend; 03-10-2007, 07:56 AM.

                                                                                                                                          Comment

                                                                                                                                          • seven
                                                                                                                                            Confirmed User
                                                                                                                                            • Apr 2002
                                                                                                                                            • 2697
                                                                                                                                            #85
                                                                                                                                            Originally posted by Alex from Montreal
                                                                                                                                            Chances are you going to spend a fortune in renovation to make it to your liking (not all of these expenses will be recoverable) and maintenance; and when you do to sell it, it will be to buy an even more expensive house.

                                                                                                                                            As far as I concern, a house is buying into a lifestyle and not an investment!
                                                                                                                                            Bought a brand new home 5 years ago, spent about 5k in appliance and blinds, sold it 3 years later for 85k more than I paid for it, bought a much bigger brand new house 2 1/2 years ago, spent about 15k in apliances, blinds and shit, it's about 100k up now.. am thinking I can now sell this and move an hour drive from the city buy a nice house for about 300k and still have 450in my pocket with 165 total profit rest savings, however, I won't do that instead prolly go for a custom house on a bigger lot this time twice the price of current home. But the thingie is, it's mental peace knowing that I could do it plus that I am not wasting any money renting a place to live in Montreal housing market ain't so great, move to real Canada and you'll start to think differently
                                                                                                                                            Toy Rev
                                                                                                                                            Rouge Web Design

                                                                                                                                              Comment

                                                                                                                                              • Peaches
                                                                                                                                                Old broad
                                                                                                                                                • Oct 2002
                                                                                                                                                • 13933
                                                                                                                                                #86
                                                                                                                                                Originally posted by wyldworx
                                                                                                                                                how can anyone say that real estate is not a win/win? A very ilogical answer to an obvious question, yes, there is money in real estate, but be WISE.
                                                                                                                                                I spend a LOT of time on real estate sites. I track properties in my area on how much they've sold for, if they sell again, how much for then, how long they were on the market, etc. I started doing this when I planned to move out of state and was looking for condos in the ATL area as a 2nd home 7 or so years ago - it's easy if it's something I can do .

                                                                                                                                                Just blindly walking out the door and putting 5% down on the first house you like and doing something crazy like getting an ARM and unless you're VERY lucky, you're not going to do well.

                                                                                                                                                Houses are the biggest purchases most of us will ever make - but I'm amazed at how little research so many people put into it when buying.

                                                                                                                                                  Comment

                                                                                                                                                  • Quotealex
                                                                                                                                                    Confirmed User
                                                                                                                                                    • Sep 2001
                                                                                                                                                    • 6265
                                                                                                                                                    #87
                                                                                                                                                    Originally posted by seven
                                                                                                                                                    Montreal housing market ain't so great, move to real Canada and you'll start to think differently
                                                                                                                                                    The montreal market may not be that great but in some area, prices have tripled in the last 10 years and doubled in many many other boroughs.

                                                                                                                                                      Comment

                                                                                                                                                      • Quotealex
                                                                                                                                                        Confirmed User
                                                                                                                                                        • Sep 2001
                                                                                                                                                        • 6265
                                                                                                                                                        #88
                                                                                                                                                        Originally posted by Peaches
                                                                                                                                                        Just blindly walking out the door and putting 5% down on the first house you like and doing something crazy like getting an ARM and unless you're VERY lucky, you're not going to do well.
                                                                                                                                                        With todays low mortgage rate, why wouldn't you put in downpayment the minimum you can get away with, and invest the rest of your money elsewhere!

                                                                                                                                                          Comment

                                                                                                                                                          • Sosa
                                                                                                                                                            In Tushy Land
                                                                                                                                                            • Oct 2002
                                                                                                                                                            • 40149
                                                                                                                                                            #89
                                                                                                                                                            My wife and I plan on buying some rental properties this year in our small college town. Close to the college, and 2-3 bedrooms do well in our area. Research your area, get good inspections. Become friends with the local realitors and banks and you can do just fine. Be smart and do your research though!

                                                                                                                                                              Comment

                                                                                                                                                              • wyldworx
                                                                                                                                                                So Fucking Banned
                                                                                                                                                                • Dec 2006
                                                                                                                                                                • 5144
                                                                                                                                                                #90
                                                                                                                                                                Originally posted by Peaches
                                                                                                                                                                I spend a LOT of time on real estate sites. I track properties in my area on how much they've sold for, if they sell again, how much for then, how long they were on the market, etc. I started doing this when I planned to move out of state and was looking for condos in the ATL area as a 2nd home 7 or so years ago - it's easy if it's something I can do .

                                                                                                                                                                Just blindly walking out the door and putting 5% down on the first house you like and doing something crazy like getting an ARM and unless you're VERY lucky, you're not going to do well.

                                                                                                                                                                Houses are the biggest purchases most of us will ever make - but I'm amazed at how little research so many people put into it when buying.
                                                                                                                                                                from a person who was accomplished in the industry, you are dead right.

                                                                                                                                                                  Comment

                                                                                                                                                                  • ADL Colin
                                                                                                                                                                    Too lazy to set a custom title
                                                                                                                                                                    • Feb 2001
                                                                                                                                                                    • 11929
                                                                                                                                                                    #91
                                                                                                                                                                    Most people don't account for inflation and the cost of your mortgage (assuming you have one)

                                                                                                                                                                    If you buy a house (sorry, Peaches) and:

                                                                                                                                                                    Get a mortgage at 6%
                                                                                                                                                                    Your home appreciates at 5%
                                                                                                                                                                    and there is inflation of 3% per year

                                                                                                                                                                    You have lost real spending power even though your house is worth more money in the end. When the average person has a mortgage rate of 6% and goes against inflation of 3% they have a decent hurdle to beat in actual home appreciation. I do agree with Peaches you should consider what you would have spent on rent.

                                                                                                                                                                    In the end, some of those people will do well and some won't. Robert Shiller did a study that considered the REAL (accounting for inflation) change in home prices for the entire 20th century. Basically, you would have broke even purchasing a house in an average US market in 1950 and selling in 1995. Your house would be worth a lot more but you'd end up with the same purchasing power. In some markets (California) you would have done great. In others you would have lost purchasing power.

                                                                                                                                                                    I would say a home is a much better hedge against inflation than, say, gold. Gold has lost tons of purchasing power the past 25 years. Houses just kept pace with inflation from 1950-1995 or so.

                                                                                                                                                                    Is a house (or RE in general) a "great" investment? I think it is a fair investment and like most things your mileage may vary. Buying in overheated markets right now entails mor erisk than if you bought in 1994. Is porn a great business? Is for some. Sure isn't for others.

                                                                                                                                                                    YMMV.


                                                                                                                                                                    Adult Date Link - $50 PPS starting NOW! -- good and JUICY!

                                                                                                                                                                    skype = "adultdatelink"

                                                                                                                                                                      Comment

                                                                                                                                                                      • JMM
                                                                                                                                                                        Confirmed User
                                                                                                                                                                        • Apr 2001
                                                                                                                                                                        • 1755
                                                                                                                                                                        #92
                                                                                                                                                                        I honestly have to say that I have never seen a thread with more idiotic posts than this one.

                                                                                                                                                                        Someone should get an xbox.

                                                                                                                                                                          Comment

                                                                                                                                                                          • Drake
                                                                                                                                                                            Hello world!
                                                                                                                                                                            • Mar 2003
                                                                                                                                                                            • 12508
                                                                                                                                                                            #93
                                                                                                                                                                            Originally posted by Peaches
                                                                                                                                                                            Yes, if only we had all had a crystal ball 40 years ago
                                                                                                                                                                            Correct, RE is way less of a gamble than almost anything else. Many ppl could have been millionaires if they had invested in Microsoft in the early 80's but that comes with the crystal ball, hindsight, 20/20, pure luck factor.

                                                                                                                                                                            A home may not be the "best" investment if we focus strictly on money, but not everything is about maximizing your dollar. It's still an investment that can be financially rewarding in the long run, but it is the peace of mind, comfort, pride of ownership, that is half of the benefit. You want to be able to enjoy life while living it. You may make slightly less than you theoretically could if you 1) gambled in stocks or 2) were so financially savvy/responsible that while renting you invested that extra money you had (that would otherwise be spent on utilities, mortgage interest, property taxes) most wisely over the course of 40 years. It's not worth it IMO and it's so unlikely.

                                                                                                                                                                            It reminds me of those compound interest calculations where you have something like $10k in your bank account and every day you put in $10 and after 40 years you have a million dollars in the account. How many people do you suppose have or will do this? None. People just don't live like that. We eventually spend that $10 on other things throughout our lives, lose sight, are irresponsible, lack the will, etc etc.
                                                                                                                                                                            Last edited by Drake; 03-10-2007, 08:50 AM.

                                                                                                                                                                              Comment

                                                                                                                                                                              • ADL Colin
                                                                                                                                                                                Too lazy to set a custom title
                                                                                                                                                                                • Feb 2001
                                                                                                                                                                                • 11929
                                                                                                                                                                                #94
                                                                                                                                                                                Originally posted by jimthefiend
                                                                                                                                                                                No offense but most of the people posting in this thread are clueless. Your home should be your most prized investment. Perhaps not your most profitable one, but still.
                                                                                                                                                                                I don't even think of my home as an investment. I think of it as a small percentage of my net worth that will hopefully keep pace with my mortgage and if I'm lucky will beat inflation too. Will it's nominal value increase at more than, say, 9%? Well, that is the long term appreciation in this area (about 10%) but we also just had a few 30% years so IF that now represents a misalignment between price and intrinsic value then probably not.

                                                                                                                                                                                Why should my home be my "most prized" investment? I am much more confident in my stock portfolio in the next 10 years and that is larger than what I have in my home anyway.


                                                                                                                                                                                Adult Date Link - $50 PPS starting NOW! -- good and JUICY!

                                                                                                                                                                                skype = "adultdatelink"

                                                                                                                                                                                  Comment

                                                                                                                                                                                  • ADL Colin
                                                                                                                                                                                    Too lazy to set a custom title
                                                                                                                                                                                    • Feb 2001
                                                                                                                                                                                    • 11929
                                                                                                                                                                                    #95
                                                                                                                                                                                    Originally posted by Mike33
                                                                                                                                                                                    You want to be able to enjoy life while living it. You may make slightly less than you theoretically could if you 1) gambled in stocks or 2) were so financially savvy/responsible that while renting you invested that extra money you had (that would otherwise be spent on utilities, mortgage interest, property taxes) most wisely over the course of 40 years. It's not worth it IMO and it's so unlikely.
                                                                                                                                                                                    "enjoy life". I agree with this and that.


                                                                                                                                                                                    Adult Date Link - $50 PPS starting NOW! -- good and JUICY!

                                                                                                                                                                                    skype = "adultdatelink"

                                                                                                                                                                                      Comment

                                                                                                                                                                                      • beemk
                                                                                                                                                                                        CLICK HERE
                                                                                                                                                                                        • Jan 2002
                                                                                                                                                                                        • 20829
                                                                                                                                                                                        #96
                                                                                                                                                                                        Originally posted by Alex from Montreal
                                                                                                                                                                                        Chances are you going to spend a fortune in renovation to make it to your liking (not all of these expenses will be recoverable) and maintenance; and when you do to sell it, it will be to buy an even more expensive house.

                                                                                                                                                                                        As far as I concern, a house is buying into a lifestyle and not an investment!
                                                                                                                                                                                        buying a house is only an investment if you plan on renting it out or reselling it for a profit.
                                                                                                                                                                                        I host with Vacares

                                                                                                                                                                                          Comment

                                                                                                                                                                                          • Drake
                                                                                                                                                                                            Hello world!
                                                                                                                                                                                            • Mar 2003
                                                                                                                                                                                            • 12508
                                                                                                                                                                                            #97
                                                                                                                                                                                            Owning a house offers you some of the greatest simple pleasures in life. Like being able to light up your barbecue in the privacy of your own backyard and being able to shout at the neighborhood kids to "get the fuck off MY property!" or your in-laws to "get the fuck outta MY house!" or your own kids to be obedient because "MY house, MY rules!"
                                                                                                                                                                                            Last edited by Drake; 03-10-2007, 09:03 AM.

                                                                                                                                                                                              Comment

                                                                                                                                                                                              • beemk
                                                                                                                                                                                                CLICK HERE
                                                                                                                                                                                                • Jan 2002
                                                                                                                                                                                                • 20829
                                                                                                                                                                                                #98
                                                                                                                                                                                                Originally posted by GooSearch
                                                                                                                                                                                                i see owning a home as a great investment..
                                                                                                                                                                                                i bought our home for 86k in florida.
                                                                                                                                                                                                we put 15k worth the work into the house.. focusing on what would bring us the highest return , roof, kitchen, etc etc
                                                                                                                                                                                                house is worth 155k .. thats after 4 years time..i plan on selling when i can get 200k for it.. maybe another 3-4 years
                                                                                                                                                                                                add up all your taxes, insurance, and interest and i bet you wont make much of a profit if any. and remember a house is only worth as much as people are willing to pay, not the state equalized value or what its appraised at.
                                                                                                                                                                                                I host with Vacares

                                                                                                                                                                                                  Comment

                                                                                                                                                                                                  • Ramster
                                                                                                                                                                                                    Confirmed User
                                                                                                                                                                                                    • Jul 2002
                                                                                                                                                                                                    • 1447
                                                                                                                                                                                                    #99
                                                                                                                                                                                                    Buying a house is an investment because 90%+ of people who do not buy a house do not invest properly so when they are 50-60 years old they have nothing (or not enough). If they had bought a house it would be paid off and they'd at least have that.

                                                                                                                                                                                                    Sad fact is most people spend what they make and save very little. A house for some i sat a least a guarantee of "saving".

                                                                                                                                                                                                    If you are single or have no kids then rent saving $500 a month compared to owning with taxes and everything and invest that $500/month and in 25 years it will be worth a hell of a lot more if invested properly than any home would have been.
                                                                                                                                                                                                    Fcuk Cash - Backroom Casting Couch, ExCoGi, BlackAmbush
                                                                                                                                                                                                    DarkReach Cash - Top Pornstars & Sites
                                                                                                                                                                                                    Skype: robmurray999
                                                                                                                                                                                                    Email: rob-at-paysitemanagers.com

                                                                                                                                                                                                      Comment

                                                                                                                                                                                                      • Quotealex
                                                                                                                                                                                                        Confirmed User
                                                                                                                                                                                                        • Sep 2001
                                                                                                                                                                                                        • 6265
                                                                                                                                                                                                        #100
                                                                                                                                                                                                        Originally posted by ADL Colin
                                                                                                                                                                                                        Most people don't account for inflation and the cost of your mortgage (assuming you have one).
                                                                                                                                                                                                        Most people only remember the price they paid for the house and how much they resold it years later, they suffer from alzheimer when it comes to adding up all the other expenses....

                                                                                                                                                                                                          Comment

                                                                                                                                                                                                          Previous 1 2 3 4 5 template Next
                                                                                                                                                                                                          Working...