A primary residence is not an investment

[LinuxJon]

Can you afford the payment?

Do you enjoy living there?

I don't understand the endless debate about housing prices here. If the answer to both of those things is "yes", all is well.

edit: clarification

I'm not bashing homeownership. I own multiple properties.

My point is that you don't just buy a primary residence for an investment gain. You buy it because you need a place to live. Even if the place triples in value, that's still second to the utility of having it as a home.

Assuming you don't have a payment you struggle to afford, the only harm in declining value is the "Man I could have bought an even nicer place if I timed it right" argument.

[Godfrd824]

Everything is an investment. A primary residence is most definitely an investment, it's called equity.

[LinuxJon]

Everything is an investment. A primary residence is most definitely an investment, it's called equity.

Except the only way to cash out that equity is to buy another residence at the current market price.

The vast majority of this board is in their 30s. What percentage of people retire in the home they own at 35? It's gotta be low single digits. Most people incrementally upgrade as they get further into their lives. Meaning for most people, the amount they are gaining/losing in equity will be mostly offset by the flux in price on the home they swap it for.

[r32gojirra]

Except the only way to cash out that equity is to buy another residence at the current market price.

The vast majority of this board is in their 30s. What percentage of people retire in the home they own at 35? It's gotta be low single digits. Most people incrementally upgrade as they get further into their lives. Meaning for most people, the amount they are gaining/losing in equity will be mostly offset by the flux in price on the home they swap it for.

Yes but you save money on rent

So in addition to providing a roof over your head, it’s providing an additional return in terms of avoided rental payments

I’d say that qualifies as an investment












I mean renting is an investment too, just in someone else’s asset

[Godfrd824]

Except the only way to cash out that equity is to buy another residence at the current market price.

The vast majority of this board is in their 30s. What percentage of people retire in the home they own at 35? It's gotta be low single digits. Most people incrementally upgrade as they get further into their lives. Meaning for most people, the amount they are gaining/losing in equity will be mostly offset by the flux in price on the home they swap it for.

And they can't just cash out and rent a condo in Florida? Or cash out and move to a low COL area? Or even to a much cheaper country. Maybe you cash out and start a business, the only limit is your imagination. And please explain how selling your house in order to access the equity is any different than selling stocks in order to cash in on their value?

[BigDeeps01]

Except the only way to cash out that equity is to buy another residence at the current market price.

The vast majority of this board is in their 30s. What percentage of people retire in the home they own at 35? It's gotta be low single digits. Most people incrementally upgrade as they get further into their lives. Meaning for most people, the amount they are gaining/losing in equity will be mostly offset by the flux in price on the home they swap it for.

a

This makes no sense. You are borrowing to buy the new house. Your out of pocket is all that matters

So if you put down 50k when you buy your house, get $250k when you sell it, you're sitting with 200k net profit. If you put down 100k on the new purchase, you're still ahead

Not considering write offs ofc

[Jasonw1178]

Rentcell cope threads sure to seem to increase as we get closer to the 1st of the month.

We can argue a primary residence or any property being an investment but when you pay rent, you are paying into someone else's investment for them with no return on your side so there is that.

[Kewbrah]

Except the only way to cash out that equity is to buy another residence at the current market price.

The vast majority of this board is in their 30s. What percentage of people retire in the home they own at 35? It's gotta be low single digits. Most people incrementally upgrade as they get further into their lives. Meaning for most people, the amount they are gaining/losing in equity will be mostly offset by the flux in price on the home they swap it for.

But after some time has passed you find yourself the owner of a thing worth millions of dollars, whereas the rentcel version of yourself in an alternate reality doesn't own a thing worth millions of dollars.

[BigDeeps01]

But after some time has passed you find yourself the owner of a thing worth millions of dollars, whereas the rentcel version of yourself in an alternate reality doesn't own a thing worth millions of dollars.

All these rentcels think they're gonna rent a studio for 20+ years and invest the difference

lmao

[rectifryer]

Yes let's throw posterity out the window and load up with 50yr mortgage loans while we're at it.

[AgRyan]

But what was refinancing and HELOCs and buying more property? Harder to do those things if you don't treat your home as an investment and are just happy overpaying and spending a ton on interest and being house poor because you love where you live.

[CatBrahsDoge]

A primary residence is not an investment

not when im through with it.

[FrankCostanza]

You moved to Texas. My relative lost money on every house he owned in Texas. Had you stayed in sac for 5 more years you could move to Texas and have 500k left over.

[PrisonWallet]

Plenty of people rent out the basement of their primary residence... To rentcels. Jimmies rustled?

[Paul Kreul]

You moved to Texas. My relative lost money on every house he owned in Texas. Had you stayed in sac for 5 more years you could move to Texas and have 500k left over.

Actually thought about moving to Texas (Frisco), live in San Diego, home has about 100k left on the loan, valued at 850k, also own a cabin up in Big Bear valued at about 500k with 210k left to pay off, my mortgage on both properties is still far cheaper than what rent is going for anywhere in CA for a 2br apartment, it's crazy out here.

[r32gojirra]

You moved to Texas. My relative lost money on every house he owned in Texas. Had you stayed in sac for 5 more years you could move to Texas and have 500k left over.

I think he kept the house in California

Interesting that this didn’t occur to you

[Kewbrah]

not when im through with it.

Quality contribution

[FrankCostanza]

I think he kept the house in California

Interesting that this didn’t occur to you

he’s working class. Sac homes were probably 500k when he bought. Idk how successful he is. I assume at least moderately so because when he floods his house it’s not the end of the world. Cali is trying to tax homes up the ass over 500k so I assume he sold.

[r32gojirra]

he’s working class. Sac homes were probably 500k when he bought. Idk how successful he is. I assume at least moderately so because when he floods his house it’s not the end of the world. Cali is trying to tax homes up the ass over 500k so I assume he sold.

So much unaweir in one post it’s hard to know where to begin

You’ve outed yourself as a one-house pleb though that’s for sure

[Polaris]

I'm assuming he made this thread in response to all of the rentcels constantly harping about losing value (which still hasn't happened), how a big crash is coming and we're all going to lose our asses due to it, etc. and pointing out what a retarded argument that is.

Even if it dips in value there's still equit there and you still need a place to live. Even if you move and take a loss you will still get significantly more than the rentcels who get 0 when they move (maybe if they're lucky the landchad will give them part of their deposit back).

[northernlights7]

I'm assuming he made this thread in response to all of the rentcels constantly harping about losing value (which still hasn't happened), how a big crash is coming and we're all going to lose our asses due to it, etc. and pointing out what a retarded argument that is.

Even if it dips in value there's still equit there and you still need a place to live. Even if you move and take a loss you will still get significantly more than the rentcels who get 0 when they move (maybe if they're lucky the landchad will give them part of their deposit back).

This.

Rentcels always moaning about supposed massive home value loss incoming. They've been doing it for years now.

If someone is one of those fools who ends up being upside down on a mortgage (owing more money on it than it is worth) or being house poor because they took on a bigger mortgage loan than rhey could reasonably handle, then that's on them. That being said, that's often exactly how that happens to people. So baring being a complete idiot or very unlucky, you should owe less on a mortgage than what the house could reasonably sell for.

That means that most people are going to end up walking away with some money after selling a house. How much money it can very a lot, but the point here is that they seldom sell at an actual actual loss compared to the current status of their old mortgage loan, let alone at a significant loss. When was the last time anyone got any of the money hack after spending any length of time renting somehwere, other than maybe part of their security deposit if they are lucky? Exactly lol.

[ClivesTriceps]

Yes let's throw posterity out the window and load up with 50yr mortgage loans while we're at it.

Even with a loan, there is still equity. If I buy a house at 300k, and I sell it for 450k, that's money going in my pocket after paying the loan off.

[Evolutionary1]

derp

[Ikeman83]

Absolutely retarded take.

After you pay down your mortgage you can use your home as collateral for access to the lowest cost money in our economy.

[Destor]

Yeah OP ain't saying it can't lead to good things financially, he's saying you buy a primary residence to reside in and this focus on price fluctuations is misguided. Changes in market price don't affect the number of bedrooms or square footage -- if you need a place to live and can afford the price + rate, then you buy it. Sometimes you get lucky, everyone is a genius until they're suddenly not.


The emphasis on home equity + value here is also missing the forest for the trees, this is exactly the type of environment in which you don't want to be pulling equity out of your home so any loss in unrealized equity is really just a wash. Pulling out equity makes sense when rates are low, and home prices themselves will increase again when central banks start cutting rates thus people who have been servicing mortgages during that time will be set up for success.

[IlChosenOne]

This is true, however an investment is also not a primary residence


Think about that and get back to me tomorrow

[cavillac]

I consider it a use asset.

[Redfish225]

Can you afford the payment?

Do you enjoy living there?

I don't understand the endless debate about housing prices here. If the answer to both of those things is "yes", all is well.

edit: clarification

I'm not bashing homeownership. I own multiple properties.

My point is that you don't just buy a primary residence for an investment gain. You buy it because you need a place to live. Even if the place triples in value, that's still second to the utility of having it as a home.

Assuming you don't have a payment you struggle to afford, the only harm in declining value is the "Man I could have bought an even nicer place if I timed it right" argument.

It’s an investment for your future. When you retire, free place to live.