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I wish just one of you droids parroting this argument was actually old enough to have done it. My parents own a property like this. They are never going to sell
by goldbrick 11y ago
I wish just one of you droids parroting this argument was actually old enough to have done it. My parents own a property like this. They are never going to sell it because (among other things) they have invested more money in upkeep and renovations to make it just the way they want it than it is worth to an average buyer, plus they like having it for family get-togethers. It's simply not at all the investment vehicle you starry-eyed dreamers think it is.
- taurath 11y agoBeep boop. Its still assets at the end of the day, no? Just because they don't sell it or they put a lot of money into it doesn't mean they can't. A renter doesn't have that option. I'm not making claims about its efficiency as an investment vehicle, I'm simply pointing out that in the example that I replied to you they'll end up with an asset worth more than the $40,000 they saved by not buying.
- gdilla 11y agoHe forgot to factor in the ~$250K cash downpayment to buy that $1MM mortgage. The opportunity cost on that over the next 30 years has to be added in. At 7% annual return (which you can get from Vanguard mutual funds) that 250K is worth almost $2MM in 30 years. Sure, rents will rise over time, but it's probably closer to a wash when you figure the insane downpayments you have to make.