Agreed. See my post about IRC Section 1031. I hope the gist of my post was either to keep your home or keep rolling the equity into other, sound investments. Not boats @BigM although I guess if you bought a sailboat you could hobknob with some real goobersmoochers and once you're in with that crowd, if you can stomach the bullshit that comes with it, the money deals come easy. If the math works, it doesn't matter what each line item is. It's all just numbers. Stop trying to scare people into buying -just- digital gold. You're also forgetting homestead exemption which caps taxable property value increases at 10% per year for primary residence. If you're paying rent you're paying the landlord's increasing costs, which are impacted by non-protected property taxes. Do you mean inflation eats equity? Sorta....but you still have cash you can roll out via a refi or HELOC to invest more. Or just sit on it (dead equity). My mortgages + insurance and taxes on my properties are still better than what people are paying now for new houses. Being a landlord is a little bit of work. Credit check and background check plus reviewing the applicants personally for red flags cuts down on about 80% of the 'work' (shitty tenants). Rehabbing your properties then selling before **** starts breaking covers about 95% of the remaining 20%. Then **** breaks, you have people to fix it. I guess being a homeowner is work too, but I pay people to fix most of the issues that arise in my home now. My days of Clark Griswolding repairs on a ladder are pretty much over. I am toying with the idea of painting my new investment property myself as I have a professional paint sprayer in storage and am good at cutting in, but I know at the end of the day I'll just pay someone to do that, too. I should sell that sprayer.... Find a good insurance broker and shop that **** around. There's no reason to stick with the same insurance company. It's like electricity contracts. Play the market. I just kick my broker an email when I see stuff is going up and they take care of the rest. They get paid to do it, I save money.
You can find financing at 5% down plus closing/ancillary costs. Again, lower DTI, good credit, sufficient income. It's even better if you're a veteran.
If I wanted to cherry pick I would have picked $115.19 in March 2020 and said stocks more than double every 4 years. If I am doing long term investing I don't care about volatility. I care about cost and return. Being able to sell as little as I want is pretty nice as well. If you have 5 houses it's hard to dump just $20,000 of that to move in a new opportunity
Check out AAA. I've had the same insurance company since we bought our house 22yrs ago. They informed me they were going to drop our policy because the roof was too old. So I made a claim and they pretty much denied it. Got a new roof and moved insurance to AAA. Our insurance dropped like a rock. It's less than half of what we were paying for the same coverage. Also moved our auto over to them and our car insurance is also lower. Because of the insurance change, our mortgage payment is dropping by $300 a month. I should've changed years ago
I bought my current home for 250K in 2016, it is now worth 430K, If I invested the money in mutual funds, i think the return would be comparable, so I don't know it is a much better option than other investment, but it is not a bad investment option.
Owning a property is a wise and great investment, not exactly a wealth builder unless you are buying properties to rehab and sell or rent.... Yeah, property values go up but whatever your property rose up to is what its likely going to cost to buy the next property you move in to.
Sounds almost exactly like my situation. My house will be paid off by time I'm 45-48. Wondering if it makes sense for me to buy a second home to winter in, at that point. (Will hopefully be full time WFH and my kids will be out of the house by time I'm 52ish). I hate winters in my part of the country.
after paying off 2 of these size of mortgages, I will let you know if I'm rich, I think it's possible but in unflattering way. I won't by anymeans finance stupid car even at 0%, but real estate is worth it (market dependable)
Yeah, sure, I'll drop 5 figures on a sweaty door-to-door salesman in a logo polo who knocks on my door at 7PM. GTFO.
I thought about getting rental properties, but people around me have told me about bad experiences with bad renters, so I am sticking with mutual funds, i do have a couple real estate funds.
You could always sell the house and rent in your old age if you really needs the money I suppose, I don't have such plans. The only way for me would be when I am too old to live in my home and have to move to retirement home.
Bought our house at the bottom in early 2010 the day before it went to the bank. with a 20-year mortgage and paying extra, we'll have it paid off in mid-2025. Zillow tells me it has increased in value by $347,000. With the kids gone, it's too much house for just Mrs. rimrocker and me. We'd love to downsize, but even selling our house at a good price, we couldn't afford the same quality of home and neighborhood in our town. Plus, given our age, the last thing we want is for things to crash again and be trapped in an upside down house. Plus, plus, the houses in our neighborhood and town seem to be selling mostly to investors who then charge 2-3 times a house payment for rent. I don't want to sell to those types, but undoubtedly they will make the best offer over some young family. Neither do I want to sell and have to bid against those people for a new house. Yuck. So, we two aging boomers will stay in a 5/3 unless we decide to leave the area. Still, in 18 months, we'll no longer have a house payment. Maybe at that point, I'll give in and pay for a yard service. (What they don't tell you about owning a house is how much of your paycheck will go straight to Home Depot and Lowes.)
Like with compounding interest on investments, the actual exponential growth starts to kick in the longer you own it. It increases in value, but "quickly" might be overselling it.
