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I don't agree with this advice. IMHO, a lot of property (specifically, real-estate) is ridiculously overvalued compared with the income generating capacity of l

I don't agree with this advice. IMHO, a lot of property (specifically, real-estate) is ridiculously overvalued compared with the income generating capacity of locals. In Toronto, an average house is close to a million bucks. I don't think you will get a lot of land to grow. But lets say, you go really far .. like an hour or hour and a half. Still .. it is pretty expensive and you just raised your commuting costs. I think for people with skills and few assets, saving cash is the most important thing to do. When shit hits the fan, you will be mobile to move to where the jobs are.

rdykl 9y ago
but saving cash isn't a good plan for building wealth. sometimes it can be tough to save quickly enough while also minimizing opportunity cost of not investing that cash.
- brutus1213 9y ago
  You are totally right. The stock market seems dangerously overvalued to me so I don't invest outside my 401K. Keep losing out to inflation. I guess the rational strategy is to diversify. But doing that in a meaningful way requires a lot of assets to begin with.
  - lev99 9y ago
    Anyone can trade in index funds, commodities, and bonds and CDs. It's not a meaningless amount of diversity available to normal folk.
  - rdykl 9y ago
    Like the other person said, ETFs and index funds are a good start - risk there is you're not protected against market downturns, but you're diversified enough to not be exposed to more common risk factors.
JoeAltmaier 9y ago
So buy someplace cheaper. I agree with what you say. But 'go and hour and a half' is very short-sighted. In an economic downturn, you lose your job, you can go anywhere. Kansas City. Des Moines. A hundred places where property is easy to own.
- thanatropism 9y ago
  Which is why you don't buy now. Later you might need to move states and lose big trying to get rid of dud real estate.
deleted 9y ago
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rdykl 9y ago

but saving cash isn't a good plan for building wealth. sometimes it can be tough to save quickly enough while also minimizing opportunity cost of not investing that cash.

brutus1213 9y ago
You are totally right. The stock market seems dangerously overvalued to me so I don't invest outside my 401K. Keep losing out to inflation. I guess the rational strategy is to diversify. But doing that in a meaningful way requires a lot of assets to begin with.
- lev99 9y ago
  Anyone can trade in index funds, commodities, and bonds and CDs. It's not a meaningless amount of diversity available to normal folk.
- rdykl 9y ago
  Like the other person said, ETFs and index funds are a good start - risk there is you're not protected against market downturns, but you're diversified enough to not be exposed to more common risk factors.

JoeAltmaier 9y ago

So buy someplace cheaper. I agree with what you say. But 'go and hour and a half' is very short-sighted. In an economic downturn, you lose your job, you can go anywhere. Kansas City. Des Moines. A hundred places where property is easy to own.

thanatropism 9y ago
Which is why you don't buy now. Later you might need to move states and lose big trying to get rid of dud real estate.

deleted 9y ago

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