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Old 08-30-2022, 01:39 PM
 
66 posts, read 48,268 times
Reputation: 149

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Quote:
Originally Posted by asufan View Post
Homeownership is the easiest path to wealth for most people. The examples you make about actors and doctors with their own practice don't need real estate to build wealth, because they earn 10 to 100X the national median household income. The fact that they're worth millions does not mean they wouldn't be worth MORE if they had owned real estate.

Now, in some markets it is more cost effective to rent than to own, that doesn't change the fact that homeownership over a long period of time almost always leads to higher wealth than renting.
How so? If you're not borrowing against it or flipping it then you're pouring money into it to keep it upright. How's that building wealth?
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Old 08-30-2022, 02:34 PM
 
9,775 posts, read 11,184,206 times
Reputation: 8501
Quote:
Originally Posted by asufan View Post
Homeownership is the easiest path to wealth for most people. The examples you make about actors and doctors with their own practice don't need real estate to build wealth, because they earn 10 to 100X the national median household income. The fact that they're worth millions does not mean they wouldn't be worth MORE if they had owned real estate.

Now, in some markets it is more cost effective to rent than to own, that doesn't change the fact that homeownership over a long period of time almost always leads to higher wealth than renting.
We agree ^^. And along with it, there are some trade-offs.
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Old 08-30-2022, 02:48 PM
 
4,624 posts, read 9,285,716 times
Reputation: 4983
Quote:
Originally Posted by Lazarus_2 View Post
How so? If you're not borrowing against it or flipping it then you're pouring money into it to keep it upright. How's that building wealth?
Because the value of real estate has increased over time.
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Old 08-30-2022, 05:05 PM
 
784 posts, read 923,979 times
Reputation: 1326
Quote:
Originally Posted by asufan View Post
Because the value of real estate has increased over time.
I made a boatload of money investing in Phoenix real estate since 2012.

And you could have too by just attending a couple of MN's class on
"Don't believe in the Shadow Inventory" and you too could have achieved all your financial goals....

I liquidated my stock holdings last year and several properties this year and am happy where I
am right now..........as the stock market and housing continue to drop I will sleep like a baby....lol
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Old 08-30-2022, 05:09 PM
 
784 posts, read 923,979 times
Reputation: 1326
Quote:
Originally Posted by WanderingRebel View Post
Sounds more like the World Economic Forum slogan of “You'll own nothing. And you'll be happy. What you want you'll rent, and it'll be delivered by drone." Next you'll be eating insects.

To me, land is the most "American" thing you can own. This whole idea of renting everything is just making the gap between the haves and have-nots wider. That's why my plan involves me owning as much land and property as possible. But to each their own.
That was a joke......maybe my delivery was a little off...lol
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Old 08-30-2022, 05:31 PM
 
4,624 posts, read 9,285,716 times
Reputation: 4983
Quote:
Originally Posted by jdahunt View Post
I made a boatload of money investing in Phoenix real estate since 2012.

And you could have too by just attending a couple of MN's class on
"Don't believe in the Shadow Inventory" and you too could have achieved all your financial goals....

I liquidated my stock holdings last year and several properties this year and am happy where I
am right now..........as the stock market and housing continue to drop I will sleep like a baby....lol
Oh I did do OK too. But I still have substantial holdings in the stock market and will continue to invest in both as well as a small amount in crypto. I'm only 47 and don't feel like pulling money out and trying to time things, I have time on my side.
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Old 08-30-2022, 08:48 PM
 
Location: East Central Phoenix
8,045 posts, read 12,281,236 times
Reputation: 9844
Quote:
Originally Posted by Lazarus_2 View Post
How so? If you're not borrowing against it or flipping it then you're pouring money into it to keep it upright. How's that building wealth?
It's called equity, and long term homeowners benefit the most. Case in point: I bought my house in the early 1990s and paid just over $100K. Flash forward 30 years later, its value is nearly 7 digits and fully paid for. Should I decide to sell when I retire and move to an age restricted community like Sun City, or stay in Phoenix & buy a smaller condo, I'd pay about half of my home value & bank the rest (after moving expenses, etc.) ... all from equity.
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Old 08-31-2022, 01:45 PM
 
784 posts, read 923,979 times
Reputation: 1326
Well you are going to.lose $100-$200+ of equity on paper in the near future while I will be taking that money and buying other properties.

It is going to get ugly in 2023.....the drop we've seen so far is nothing compared to what is coming.....get your popcorn ready.

I would interested in what your high was back in 2007-08 and how low did it go in 2011?
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Old 08-31-2022, 03:07 PM
 
4,624 posts, read 9,285,716 times
Reputation: 4983
Quote:
Originally Posted by jdahunt View Post
Well you are going to.lose $100-$200+ of equity on paper in the near future while I will be taking that money and buying other properties.

It is going to get ugly in 2023.....the drop we've seen so far is nothing compared to what is coming.....get your popcorn ready.

I would interested in what your high was back in 2007-08 and how low did it go in 2011?
Who are you talking to?
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Old 08-31-2022, 03:11 PM
 
9,775 posts, read 11,184,206 times
Reputation: 8501
Quote:
Originally Posted by asufan View Post
Who are you talking to?
I am pretty sure he is talking about V-N. V-N said is up 7X on his condo. I will say, condos/twin homes really rallied like never before. In the past, they didn't appreciate as much. IMO, that segment might take a bigger hit (percentage-wise) than SFH's. What is your opinion on that last sentence?
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