So my neighbor bought at the peak like a clown. My other neighbor recently sold. They have the same style of house.
Here's the rub, the comps indicate the neighbor that bought at the peak is down about $200k.
But how much are they really down?
To really figure this out, you need to take that $200k loss and calculate out how much interest they're going to pay on it over a 30yr period.
This comes out to closer to $600k.
That's why it's so important for them to brainwash everyone to expect inflation. People aren't ready to wrap their minds around where shit is headed, when what were unimaginable loses begin to compound.
If you're using the house as your primary residence you have to figure out what you'd be paying comparably in rent. Real estate isn't a speculative, innately worthless asset like Bitcoin, you are receiving value simply by using it
@BagholderQuotes 😂
You (generally speaking) need to have a house. If you'd be paying $1000/month in rent, that's money that needs to be factored into the equation. Notwithstanding the fact that houses may very well depreciate, if you did not have that asset you would still be expending capital
Yes and no. I'll agree that you can live in your car and save a lot of money that way. It's how I saved up have a 25% down payment on a new house when I was 25. If you're young and don't have a family, I highly advise living as cheap as possible and working more than one job to build up the bank account or investment account. But once you have a family and want a little stability, buying a house may not be a bad move because the payment typically becomes a smaller percentage of your income over time. If you can still afford the payment, it really doesn't matter what the value is to others as long as it's meeting your needs. It can actually become beneficial for tax purposes for the value to go down providing you buy and hold. I am totally against property tax for ones primary residence, and lean towards being against property tax all together