Anyone else win the housing game?

Intel iSpyPi
May 22 43 Comments

My house increased in value by 70% in the last 6 years since I bought it. That’s more than I’ve spent on mortgage/hoa/utility/tax payments. I’ve been living effectively for free.

Anyone else win the housing lottery?
TC240k LCOL geo

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TOP 43 Comments
  • Walmart.com wowiknow
    There is no winning until you sell !
    May 22 8
    • Amazon gudguygabo
      I am amused when you say you won. Winning is when you can sell for 2019 proceed and still buy your next place for 2015 prices. That is unfortunately not the case. Buying cheap and selling high works if it is NOT your primary home. Otherwise renting or buying high negates your returns
      May 22
    • Intel iSpyPi
      OP
      Strangely they haven’t as much. More demand for lower cost starter homes than bigger more expensive houses, I guess (and maybe my current location is more desirable for some reason I can’t fathom). My house is up 70% and the bigger houses are up 20-30% in the same timeframe. In this way it effectively works as a win. Lower cost house also means you’ve wasted less on interest and other expenses.
      May 22
    • Yahoo / Design getAway
      You do know that 50% of that delta, you will need to pay uncle Sam?
      May 23
    • Intel iSpyPi
      OP
      No, housing gains are tax free if you’ve lived in that house for 2 years and held for 5. It’s also only 15%.
      May 23
    • Amazon gudguygabo
      Tax free upto 500k if you are married and 250k if you are single.
      May 23
  • The house that you LIVE is not an asset, it is a liability. Wake uppp
    May 22 7
    • Zillow Group jacksanz
      It is an asset that has maintenance cost. That's all it is. Real liability is your debt to the bank.
      May 22
    • I argue it is not an asset unless it generates me dividends. Playing the equity game is risky tbh. Although banks love it
      May 22
    • Microsoft pJcW86
      Depends on your locale and housing market, from 2010 to 2018 it was an asset for everyone who had a house.
      May 22
    • Thermo Fisher / Sales zeussical
      Historically home prices on average have gone up around 3% a year over the last 70 years even with recessions. While it’s not an “asset” in the classic sense I wouldn’t consider it a liability when comparing it to rent.
      May 22
    • Facebook Pascality
      That 3% is nominal (not inflation adjusted) doesn't include maintainence, property taxes, homeowners insurance, the cost of carry (interest on your mortgage), the opportunity cost of not investing your down payment in S&P500, or the illiquidity (reduction in geographic flexibility).
      It's not a liability. But it's pretty damn close.
      Just my $0.02
      May 22
  • Google 1234-/:;(
    700->2.8m held for 20 years
    May 22 2
    • Amazon Northman
      This guy hodls.
      May 22
    • Facebook Pascality
      That's 7.5% annual return. Before leverage.
      Good move, sir!
      May 22
  • Amazon / Eng KHCr70
    Apartment: 420 -> 750, 4 years
    May 22 0
  • New / Other
    DuQvV7y

    New Other

    BIO
    Did stuff. Hustled hard. Retired
    DuQvV7ymore
    Some of us purchased several units post 2008 meltdown.

    The returns have been so good they can’t be shared in polite company.
    May 22 8
    • New / Other
      DuQvV7y

      New Other

      BIO
      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      You should probably attempt it and tell us what happened.

      #imrl
      May 24
    • Facebook Paillier
      I think your point is that stocks have higher volatility than houses. That just translates to lower leverage, not zero leverage.

      Eg: buy NASDAQ in 2009 with 50% leverage. Enjoy 14x returns.
      May 24
    • New / Other
      DuQvV7y

      New Other

      BIO
      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      Max margin account is 2x, not 5x.

      So, yes you could have purchased QQQ with 50% down and made 14x ( not 20% down)

      BTW, you could also have bought bitcoin and made 3000x.

      I’m pro equities. I have some. I’ll occasionally buy more. But to believe that a margined QQQ purchase in 2008 beats every RE play is very incorrect.

      You can leverage over leverage in RE. Albeit super risky, but replete with rewards when it works. It failed drastically in 204-2008, worked insanely well since.

      There are several people here who do this. One (awesome) cat even managed to FiRE at 43 on a measly Midwest TC.
      May 24
    • Google uzaname
      Max margin account is 2x but you can buy leveraged instruments and borrow money elsewhere. That's not the point. The point is, I can make similar (slightly better) returns with stock as with real estate at similar risk ratios as described in Rate of Return on Everything analysis from few years back
      May 25
    • New / Other
      DuQvV7y

      New Other

      BIO
      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      🤣🤣😆😆 Folks likes to pretend they cashed out every penny to buy TQQQ calls in 2008 and are now sitting on 200x returns.

      Monday morning quarterbacks suddenly calling plays better than Tom Brady.
      May 25
  • Google uzaname
    It's actually a worse return than if you would invest in vanguard growth etf during the same time. But for primary residence as opposed to renting that's still nice.
    May 22 5
    • Groupon STCO30
      Depends on how you look at it since housing is a heavily leveraged investment. I definitely could not have made near as much in an etf as I did in real estate in the last few years.
      May 22
    • Microsoft pJcW86
      Leveraging in stocks = buying on margin and high risk
      Leveraging in real estate = normal

      The biggest thing in real estate is using someone else's money to make money for you.
      May 22
    • Google uzaname
      It makes sense though. Leverage on more volatile (stocks) has higher risk.
      May 22
    • Facebook Pascality
      Leverage isn't free - you're paying interest. Every year that your house appreciates less than your interest rate - you're losing money.
      May 22
    • Groupon STCO30
      Yep, that’s true. Looking back at the last few years plenty of homes on the west coast have appreciated far faster than the interest rates though. This obviously can’t be expected, but looking back has worked well recently for a lot of people.
      May 23
  • Groupon STCO30
    Condo Seattle 76% increase in 3.5 years before selling last year.
    May 22 0
  • Zillow Group jacksanz
    Townhome: 400 -> 600, 3 years
    May 22 0
  • Google bayarea6
    will be interesting to see which one of these 300 cities in the sf bay area see the greatest appreciation in the next 5 years https://agentsunlocked.com/allcities
    May 23 0
  • Cisco chckde
    Townhouse, 800->1.25M, 5 years
    May 22 0
  • HBO / Design
    Boul61

    HBO Design

    PRE
    Amazon, Microsoft
    Boul61more
    Mine doubled. I had low mortgage in first place so We refinanced and bought an investment property.
    May 22 0
  • Microsoft pJcW86
    One house turned into multiple houses in a high COL area (via appreciation) that originally started with a 10k investment and is now multiple millions.
    May 22 0
  • Google printasap
    Condo. 450k increase in 3 yrs
    May 22 0

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