I believe it. If it wasn't required by my mortgage lender, I'd be tempted to go uninsured. After paying premiums for years and years, the ONE time we made a claim after a burst, it was denied and they dropped my policy immediately. We got stuck making the repairs out of our own pocket anyway, and I could've saved more than that over the years not paying those premiums. We are in a lawsuit to recover our damages against the insurance company, and they have been antagonistic pains in the ass the entire way. I freaking hate what the property insurance industry has become.
Growing up it always felt like reaching landlord/rent-seeker status was the endgame. But now that I'm at a point in life where I can actually own investment properties, I have zero desire to. So much work, risk, and overhead. Seems like a total hassle compared to just buying and owning a digital asset that appreciates so fast I can just travel/rent whatever I want whenever I want instead of buying a vacation property and being stuck in one spot and having to babysit it. As far as rent vs. own, even if you know you can come out ahead renting, the moment you have a family that calculus flips on its head because you want your kids to have a stable upbringing and you get very attached to your neighborhood/community. If I never got married I'd probably rent forever.
I get that. I own crypto, too. But don't put all of your eggs in one basket. The inherent stability and the tax breaks for real estate can't be understated. The 'hassle' of being a landlord can be mostly mitigated by planning and budget. It's 99% math in this case. But until you can pay people to do the work of acquiring and setting the properties in motion, there is indeed a time overhead. You could say the same if you are trading crypto, though, as that takes a full time commitment, IMO. Renting for your own long-term home in most places is just stupid.
For me, its about how much capital I must allocate to the acquisition of the property. 0-5% is not terrible. 20-40% is a lot of capital to get locked up for several years. Ultimately the money isn't made in rents, but the eventual equity. If I could bond my bitcoin, it would be towards real estate, not to other bonds or equities.
****ing around with altcoins and trying to time markets, it's 100% guaranteed you're going to eat ****, it's just a matter of time. You're much better off spinning your wheels with real estate and all the headaches that come with it than playing in that garden of landmines. I'm completely content and satisfied with my 100% allocation into BTC for my long term savings. Diversifying for diversity's sake made sense in the analog-only investing world where risk was extremely variable and hard to track. It does not make sense in a Bitcoin world where an asset exists with effectively zero risk.
Gun to my head, real estate is absolutely the only other long term savings vehicle I would venture into, but like I said, in a world with Bitcoin, it doesn't make much sense unless I just want to flex my wealth and impress people. Maybe one day it'll make practical sense for me to own more than one home (retirement), but for now it just seems like an outdated idea.
Hypothetically: -Bitcoin is $100,000 per and you have the keys for 7.5 BTC valued at $750,000 (for simple easy math) -You want to buy a piece of property for $500,000 (house, raw, commercial ... doesn't matter) -Hypothetically - Fed Fund Rate is 4% -Bank is willing to give you $500,000 for 1.5x BTC collateral (7.5 BTC). Agreement is 2.5% interest with 3 of 3 key custody (you get 2 keys, they get 1). You own the property(Title in your name) with a $500,000 lean on the property. (versus mortgage and bank owns property). If you transfer the BTC, it will make an immediate call on the lean. Why would you do this? If you got a mortgage (500k fixed 30yr @ 5.5%), you would be paying ~$2,850 a month (~$550 principle/~$2,300 interest). You also have closing costs and down payments associated that is not baked into this scenario. At 2.5% interest, you would be paying ~$1,050.00 a month. Principle is optional. That is $1,800 a month that you could reallocate else where (including paying down the principle) Why would a bank do this? They have a liability that is backed by two assets; the BTC and property. This would strengthen the asset side of their balance sheet. Realistically, BTC would need to be a $250k-$500k asset, not $100k
A house in only worth what someone is willing to pay for it. Just because your home has appreciated by 30-50% doesn't necessarily mean there is always a buyer at that price.
Absolutely, owning a house can indeed boost your financial standing. I had a similar experience with my first home. Bought it at a low market point and sold it after five years for a 30% increase in value. It felt like a significant win at the time! Timing really is everything. For example, I sold my home with the help of Property Buying Company when the local market was booming, and there was high demand for homes in my neighborhood.
Yes. Also, best to buy before big real estate gobbles up all the homes and everyone else is left in the cold, forced to rent for the rest of their lives.
Or, don’t, and spend that extra 50k on upgrades, force appreciation, and refinance that ho and get PMI removed. Then rent a limo, pick up some 40s, go to the strip club and make it rain.
You, too, can learn the secrets to Mr. Thugg's success in his new book "Financial Advice for Pros, Ho's, and Average Joes"!
And then they force you to work the land or be homeless…they grant you a tiny portion where realistically you can only grow potatoes. Your entire diet is measured in the pounds of potatoes you consume each day and, maybe, if you’re lucky, some milk you dip it in. Then a fungus rots the potatoes year after year and your kids are starving. Meanwhile big real estate forces you to sell grow and sell crops and livestock to be consumed by them. Someone should write a song or a poem about it.
Eventually, they'll get sick of you existing and send soldiers to steal what crops you have for export, while boasting about how soon your kind will be as rare in your homeland as a Red Man in Manhattan.
