patrick.net

This is true.

Stocks are a far better investment than houses in general.

But it takes great discipline to save money and invest it, while a house is kind of enforced savings via the principal part of mortgage payments. Most people have a hard time with discipline.

Most people have a hard time with discipline.

Correct. That is why Social Security came about in the first place, people did not save for old age. And how many people bother putting away money for the kid's college from the time the kid is born?

Oh jeez.

A home is a place to live, not an investment.

Often, the home is a malinvestment.

I reckon the ownership discount on our residence is about 2.5% per year. Not exactly a number to boast about.

Stocks work for you.

Houses only cost money. Property taxes are costly. Fixing things adds up.

Fortwaynemobile says

Fixing things adds up

Tell me about it after I spent $5,600 replacing the 23 year old HVAC!

HeadSet says

And how many people bother putting away money for the kid's college from the time the kid is born?

I'm torn on this one. I'm not so certain college is for everyone like it used to be pumped. There are very few things worth going to college for in my opinion. There are too many bullshit majors that cloud what at the time are immature children making pretty big life decisions. STEM, medical doctors and teaching are about the only reasons to go to college (I'm sure I'm missing some stuff, but that covers most of it).

I'm also of the belief that parents shouldn't just open up the checkbook for a college education. I had some help for sure, but my wife really didn't. Struggling and working through paying off loans, understanding debt, getting scholarships, and being forced to work harder to get on top isn't a bad thing in my view.

We will have the cash when my kids reach college age, but we've decided, as of now, to let them figure it out. We'll give guidance, but just giving out money isn't what we believe in. The other fact pretty much everyone I know overlooks is you've go to take care of yourself. If you're broke from putting your kids through college and have some medical condition, you're going to die a miserable death. We call ourselves oxygen mask parents when it comes to retirement and old age. Don't expect your kids to take care of you after you blow your wad on their college education.

A house doesn't pay dividends until it's paid off.
My house I bought in 2010 will be paid off in about 5 months. After that I will start to earn $1800 a month for the rest of my life.
Plus all of the equity as it continues on the trek to being worth $20 million dollars, because Americans are so fucking stupid they bend over and take it up the ass. While the NAR and the RE investor class, lobbies to prevent new affordable single family home developments from happening anywhere in America.

One day soon all of you Renters will be giving the Duck $4,000 a month for a 2 bed room apartment. Or at least 60% of your income.

I've been tracking the maintenance and repair costs on our 1150 sqft sh*tbox since we commenced on major deferred maintenance repairs in 2006.

The slope of that line, extrapolated back to year of purchase, is $6600/yr.

It's only February 5 paid already $500 for a plumbing emergency. The emergency part was $250, but since the guy was already here I had him proactively do an additional repair.

Homie don't do plumbing and electrical.

Also about $50 for miscellaneous DYI materials. Shoddily China-made crap from a local retail hardware store, I don't expect those to last long.

Right on the trendline of $6600/yr.

B.A.C.A.H. says

Right on the trendline of $6600/yr.

Not disputing that you've paid that, but that's an insane amount to pay per year for repairs. I get everyone is not a skilled tradesman, but 80% of home repairs can be done yourself. There's also the fact that $6,600 per year over two years gets you a new water heater, oven, fridge, furnace, AC every two years basically. That's insane. Stuff like that last a decade, easy.

I hate inspectors, but did you have an inspection done on the place? You're talking $92k on a 1,150 sq. ft. house over 14 years? That literally could rebuild most homes that size if you exclude land cost.

Wookie,

Your comment, and your mention of AC (we have none, not needed in SJ, just a window unit that we some times go years without a single use, and yes, it's included in the total) suggest that you live outside the Bay Area.

Yes, the guy inspected when we purchased in the 1980's.

There were no dediciencies other than expected wear and tear on a then 20 year old sh*tbox, and none of the repairs were surprises.

Yes, we do what we can.

What I call maintenance and repair, some Hipsters will call "remodel". B*llsh*t. In my view a remodel would include structural changes, not custom cabinets, etc.

Replacement roof lasts about 20 years. We've put up two of those.

The privilege of owning is expensive.

Tenpoundbass is in a good location for real estate investment.
There is a combination of inexpensive properties and an abundance of low wage people who are going to rent forever.
I could have bought a place in W. Palm, Lake Worthless, or Riviera for cheap and made some income.
On the other hand, I kept my powder dry and made last year 30% in my funds, 90% with Apple, and 100%+ with some Roku, while collecting dividends from other funds.
Since I moved, I didn’t want the hassle of being a landlord.
If I went back, I would consider it, but not in the cheapest areas, my goal is to not go south of the PGA curtain if possible.