4 ms·
Not zero (taxes, upkeep, etc), but yes. This is the main thing.
by larrik 7y ago
Not zero (taxes, upkeep, etc), but yes. This is the main thing.
- CydeWeys 7y agoTaxes, upkeep, etc., is easily going to run into the tens of thousands of dollars annually depending on where you live. It's very far from zero. I don't get OP's argument at all. You're never going to get housing costs anywhere close to zero unless you're grifting off someone else or living on the street.
- sjg007 7y agoAppreciation.
- CydeWeys 7y agoThe long term average return on a primary residence doesn't even keep up with inflation.
- sjg007 7y agoYou are mistaken.
- rifung 7y ago"Home prices look remarkably stable when corrected for inflation. Over the 100 years ending in 1990 — before the recent housing boom — real home prices rose only 0.2 percent a year, on average. The smallness of that increase seems best explained by rising productivity in construction, which offset increasing costs of land and labor." From Nobel Prize winner Robert Shiller https://awealthofcommonsense.com/2013/04/robert-shiller-on-real-estate-investments/ https://awealthofcommonsense.com/2013/04/robert-shiller-on-r...
- sjg007 7y agoWhen corrected for inflation equals zero. And 1990 was 29 years ago.
- ApolloFortyNine 7y agoTens of thousands? I'll admit I don't know the property tax nationwide, but in my county in Virginia it's under 1% (5 minutes to downtown Richmond). A modest $300k home would have a tax of only $3000. And your maintenance is not going to be anywhere close to 10s of thousands, and it's extremely unlikely you'll even average 10k a year over 5 plus years.