by tovarichpeter ➕follow (7) 💰tip ignore
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Home must be where the heart is, because my Feb. 19 column on homeownership being a lousy investment annoyed readers mightily. I may as well have spit on motherhood, apple pie and the girl next door.
But my basic point remains true.
Readers’ biggest gripe: What about rent? Overwhelmingly, folks believe owning is cheaper than renting. And they believe that buying, via mortgage payments, transfers “wasted” rent into an investment. Wrong and mostly wrong.
in addition to providing a 300% return, my house has provided comfortable shelter for me and my family over 7 years... and in another 3 I'll never need to pay rent again.
I would have made more investing in bitcoin, I guess. But my home has been the best investment I ever made, especially because it was so leveraged (3.5% down)
and in another 3 I'll never need to pay rent again..
in addition to providing a 300% return, my house has provided comfortable shelter for me and my family over 7 years... and in another 3 I'll never need to pay rent again.
I would have made more investing in bitcoin, I guess. But my home has been the best investment I ever made, especially because it was so leveraged (3.5% down)
42c8 saysin addition to providing a 300% return, my house has provided comfortable shelter for me and my family over 7 years... and in another 3 I'll never need to pay rent again.
I would have made more investing in bitcoin, I guess. But my home has been the best investment I ever made, especially because it was so leveraged (3.5% down)
Soooo, if the plan was to pay off the mortgage in 10 years what was the point of putting only 3.5% and incurring additional costs in form of PMI?
Your home is still not an investment
Never saw it as investment. Just a roof over my head.
Never saw it as investment. Just a roof over my headI don't think anyone did until after the hyperinflation of the 1970's. People forget what a traumatic event that was and how it changed thinking forever. I know inflation receded in subsequent years, but house prices were the most obvious recipients of those times and policies. The 1931 house where I lived in the garage apartment from 1967 to 1974 at 8122 Santa Clara Dr. in Dallas sold for $34K in 1973 ($197K in today's money), still needing $10K in roof and foundation repairs the elderly couple who had owned it since 1940 could not afford. The most expensive house in the neighborhood had sold for $45K a year earlier. By 1980 it had risen to $100K and in 1992 sold for $192K. Today it is valued at $829K in a neighborhood of like-priced beautiful homes. That house had probably not increased in value more than about 1% between 1963 and 1973, but with all the economic upheavals of the next 40 years, the sky was the limit. Taxes on it today are probably more than $10,000 a year. I rented for five more years, then bought my condo in 1981, sold it in 2005. The brand new small one bedroom apartment I moved in to in 1975 was $150 a month and $210 when I moved out at the end of 1980. Today it is $650 which is about what $210 was worth in 1980.
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