Only retards buy houses
Only retards buy houses
A $1M home in 1981 only worth $2.5M in 2024.
That grandfather's name? Albert Einstein.
If he invested what he would have paid in rent, he would probably come out more or less with the same return.
/thread
He could have got a mortgage instead of paying cash and had almost both
I’ve been a retard 17 times so far, very profitable. Thanks!
Back in the 80s mortgage rates were well over 10%. He would've been paying very high interest rates for decades even if he refinanced. Therefore, would've been better off renting and investing the rest. With high interest rates and high prices, it makes zero sense to buy into such an illiquid asset. The Japanese have it right not treating homes as investment vehicles. If your real estate is not yield generating, it's draining you.
Only retards think of houses as some great investment.
FTFY.
And yes, retards buy houses as some "great path to wealth" or bullshit like that. For the room-temperature retard portion of the population, buying a house does help because they're too stupid to save money unless they're threatened with being cast out onto the streets.
I'm buying a house right now, but I'm already rich, and the house is less than 5% of my net worth. It's obviously a stupid money pit, especially to a poorfag.
We skipped title insurance and can set the deductible as high as possible on the house insurance because we're paying cash, but it's easy to see how retards could have to pay many thousands trying to appease various mortgage jews. Even so, we still get hit with taxes, transfer fees, closing costs, and other jewish trickery. Next since it's YOUR HOME there's a huge incentive to go blow a load of money on furniture for each and every room. Pretty easy to see that even if the whole house itself was FREE it'd take 6 months-a year to even break even on just these jewish shenanigans.
There probably, eventually, will be some money made, but that's nothing versus just renting a place and investing everything else into stocks or crypto.
NOBODY can predict the future. He made a $1.5m profit (well ok really $1m when you consider all the renovations,repairs,etc.), so why is this guy whining again?
$1m in 1981
$2.5m 43 years later
Liar makes up bad numbers but because he's stupid he goes absurdly low and everyone can see he's lying
Right? They must have trashed that fucking place if it was $1M in the 1980s and only 2.5M at the height of the current inflation-fueled real estate mania
that's retarded he would have still made a fuckton of money. do the math
It could've happened in some markets. You now have a 45 year old house and if the upkeep hasn't been great that brings down the value, some areas might not be as desirable as they were 45 years ago.
Though a $1m house in the 80s would be an absolute castle mansion pretty much anywhere in the US. It's pretty unlikely.
Any $1m house in 1981 would be $4-5m now. Most homes have basically doubled in cost since 2020 alone.
Plus if he were renting he'd be paying more so less to invest. Alongside living in a stranger's home you can't make your own.
Consider if he bought the house and rented it out, that's maybe a ROI of 5% annually.
Assuming he would live in a similar house, he would spend 5% annually on rent.. It's not that dissimilar to your return on stocks.
WEF shill
Let me guess I need to rent my house from Mr. Shekelberg
Only retards outright buy houses and don't take on debt for them
fify
NOBODY can predict the future
I can. ETH will hit $14000
My dad sold his he built house and acre of property next door in 2015 for 400k and was able to turn it into 4 million in stocks by 2024. Not bad for a carpenter
50 years of rent equates to $1billion
Is that why all landlords are billionaires?
Yeah rent forever goy
Berkshire Hathaway outperformed almost every stock over Warren Buffett's lifetime. However, the assumption is that the guy's grandfather would have been smart enough to pick that one, which is not likely. The stock market as a whole returned 10% on average over its lifetime. That's more than the 6% real estate increases by every year.
A $1m in 1981, adjusted for inflation, should be worth $3,600,000 in 2024, meaning he lost 1.1M on his house even after the massive run-up in home prices in the late decade. Sad. Many such cases.
in the same spirit
only retards buy fiat for their crypto (cash out)
Why are you adjusting for inflation? 1.06^44=13 (or 13 million).
I may as well calculate Berkshire Hathaway. It made 20% on average. 1.2^44=3047 (or 3 billion). Definitely a better investment but almost no one can pick stocks
First of all, you're cherry picking an insane moonshot of a stock. Valid comparison would be to the S&P500 or something.
But more importantly, this is an argument against buying in cash or buying too much house. An apples to apples comparison would be if the grandfather rented the same house vs buying normally with a mortgage. Because everything is basically the same, the landlord is paying the mortgage, maintenance, etc. but the grandfather would be paying for all of that in rent, plus a profit margin on top that the landlord expects to exceed the opportunity cost of their investment (the down payment's investment yield the owner loses). Renting just mathematically can't come out ahead without unrelated assumptions like underpriced rent, which could just as easily be the reverse and go in favor of owning.
The only advantages to renting is flexibility, and that you can buy smaller apartments in buildings that benefit from economies of scale. But if you know you want to settling down, and you want a detached, single family home, buying is nearly always better.
Considering that granddad's investment underperformed inflation, it's more an argument about not being an idiot. Average real house prices doubled over that period, so in nominal terms the expected value of one million put into real estate in 1980 is like seven million today.
this
real estate investing is only supposed to be done with other people's money
he didn't pay rent for those 33 years
Again though, that's anecdotal. You can bet on black and lose, that doesn't mean betting on red is a good divestment. (even so, grandfather could have put 100k down, and then refinanced as rates dropped, and ended up beating inflation by 10x with that house.)
But main point even if the house was a bad investment, renting would always be worse on a long enough time frame.
Its not that "owning" is bad, its just overspending on a big house is a big expense whether you rent or own. Comparing apples to apples owning is nearly always better. Renting is only better in cases where you are talking about small apartments when you're just cutting down your living expenses. If you want a real detached house tho, buying is better.
where in the US did a house cost 1 million in 1981? the only place i could think would be malibu and that'd be worth 60 mil+ today. the story seems like horseshit.
Many such cases.
lolno
unless your house burns down without insurance, anyone that bought a house in the last 75 years made shitloads of money.
Mine has gone up 600% in just the last 23 years
if I had bought my house in the 80's I'd be up almost 1000%
Fake as shit. I bought real estate in 2011-2013 and it tripled in value.
yep. From 2012 on my house actually made more money than my job did. It's gone down a bit the last couple years, but it's still way up.
you could probably count the number of $1m homes in 1981 on both hands. It would have to be a well-known architect designed estate on extremely good land
because you bought at the bottom of a housing crash
people who bought in 2005-07 had to wait 15 years to break even if they didn't walk away from their homes
people who bought 2021-22 in certain markets (TX/FL) are still underwater
i haven't earned any equity since 2021, shit dipped in 2022 (nothing was selling), since then things have been relatively flat, no more multiple offers, no more buyers waiving inspection/appraisal like we had in the 2010s
XRP$2k
Was the place burnt to the fucking ground and the soil salted? Basically only the most luxurious properties were at a million in the 80's.
Unless it was maybe the most expensive house in Cleveland or Detroit no way in fuck is it 2.5 million now.
But main point even if the house was a bad investment, renting would always be worse on a long enough time frame.
Don't necessarily believe it, especially in the post 2010 world. Stocks/crypto just rip way harder, so gotta factor in the opportunity cost.
Buffet is right. Just buy one when you need one but you'll be richer just going equities.
made up story
pretty sure the grandfather was doing extremely well to be buying anything for a million cash in 1981. extremely fucking well. also i call bullshit on that appreciation over that time
redfin.com
Here, a home that sold for 1,025,000 in 1987.
Maybe in the rust belt.
I know that housing has more than 10x’d in California, since 81.
he would probably come out more or less with the same return.
Renting a mansion for 50 years costs on average about $18,000,000.
$1,000,000,000 - $18,000,000 = $82,000,000
more or less with the same return
???