Keep your money in fast growing tech stocks and just rent an apartment or a house. It’s that simple, no? With the fast growing stocks, you can even send kids to private schools. #housing
Buying a house to use as primary residence is not an investment, therefore it does not matter what the returns are.
That’s because you are not in Bay area!
Most probably true OP. But then with this thinking, why buy anything? Just lease or rent. Keep money in stock and watch it grow. And then what? Watch it grow more.. and more.. and then what? Never gonna sell? Not sure if watching it grow until you drop dead makes sense? Yeah?
How is that different than a house
Pass it on to your kids so they and your grandkids have a place to live
Do you buy your stocks with 5:1 leverage and live in them?
TQQQ is 3:1. I buy it when there’s a strange bad news that I know will blow over. And then sell when qqq is all time high.
Housing being thought as an investment is already a sad state of things
I don’t own any tech stocks, since I spent everything to buy a house where I’m at. I prefer the stability of being a homeowner and having protections than being a perpetual renter and having to always be on edge due to my landlord. TC: 105K
You. Sounds good. Someday when you retire.. can’t rely on rent prices staying stable or anyone even giving you a place to rent. You need a house
That was my thinking. I can scrimp and save some money to put into tech stocks soon, but housing is a priority for me.
For investment, you have to think as any other investments. Diversification. If you want to park 25% of you NW on almost stable, inflation hedge assets buy RE. Becoming house poor is a bad idea.
This is a good way of thinking.
The answer has and always will be price stability. Rent prices are subject to change while your mortgage payment is the same for 20-30 years. It's easier to budget when you're not in fear of a 20-50% price increase because your landlord knows he can find another tenant instantly.
Not a thing in blue states where the law strongly prefer the tenants.
When you rent, you pay $3k per month for shelter and after 20 years, somebody else owns it. When you buy, you pay $3k per month for shelter and after 20 years, YOU own it.
And rent goes up every year
In blue states, it’s more like $10k/mo when buying.
Leverage
Higher interest is a recent phenomenon. Most bought it when interest rates were at rock bottom. And rates may not stay this high for a long time. Who knows really.
Op is talking about current situation