4 ms·

How many is a lot? What is your source?

vmception 6y ago
If you would like to learn more about that, you would have to extrapolate as all "net worth" estimators cannot account for all sources of wealth and are complete guesses. Pensioners are living for 30+ years these days. Index funds, real estate held for 30-60 years, an inch of entrepreneurial effort to make any of those properties cash flow, maybe a couple actual wins. It's not that improbable. The only problem is that people want to do all that before they are a 70, not when they are 90. When you walk through a city, like Toronto which this article was about, and see any block, or apartment building, remember that there is an actual human that actually owns that. Each and every one. Even in the run down parts of town, all that stuff has a book value of at least $1 million and is liquid enough to borrow against at the lowest interest rates for further investment. Start counting. It is a lot. As in, not rare. Not exceptional. Not the same as common, or most. A lot. It should be evident enough for you not to need a dissertation to modify your worldview.
- whimsicalism 6y ago
  Not only are most of those apartment building not owned by a single person, but most apartment buildings are financed by huge amounts of debt - so the owner doesn't have the full worth of the building after debt, most of the money is with the banks [0] [0]: https://www.census.gov/prod/1/statbrief/sb96_01.pdf https://www.census.gov/prod/1/statbrief/sb96_01.pdf
  - vmception 6y ago
    A) every property financed by the time of that census article from 1996 is paid off now B) even the person from OP’s article owned business interests in various properties
    - whimsicalism 6y ago
      I'm not taking issue with your claim that there are plenty of people with a networth of at least 7.5 million - there are millions of them in the US alone. But most city apartment buildings aren't owned in full by a single person. The numbers are even more stark for more recent [0] [0]: https://www.jchs.harvard.edu/blog/who-owns-rental-properties-and-is-it-changing#:~:text=Institutional%20investors%20own%20a%20growing,Housing%20Finance%20Survey%20(RHFS) https://www.jchs.harvard.edu/blog/who-owns-rental-properties....
    - sokoloff 6y ago
      What’s the reasoning behind the claim in A? It’s extremely common to refinance (and in the US to 1031 exchange out of a property into others; might be a similar program in Canada). Much of the benefit of commercially owned real-estate comes from being leveraged. Paid-off property will cash flow better per door, but usually not per million of equity.

If you would like to learn more about that, you would have to extrapolate as all "net worth" estimators cannot account for all sources of wealth and are complete guesses. Pensioners are living for 30+ years these days. Index funds, real estate held for 30-60 years, an inch of entrepreneurial effort to make any of those properties cash flow, maybe a couple actual wins. It's not that improbable. The only problem is that people want to do all that before they are a 70, not when they are 90. When you walk through a city, like Toronto which this article was about, and see any block, or apartment building, remember that there is an actual human that actually owns that. Each and every one. Even in the run down parts of town, all that stuff has a book value of at least $1 million and is liquid enough to borrow against at the lowest interest rates for further investment. Start counting. It is a lot. As in, not rare. Not exceptional. Not the same as common, or most. A lot. It should be evident enough for you not to need a dissertation to modify your worldview.

whimsicalism 6y ago
Not only are most of those apartment building not owned by a single person, but most apartment buildings are financed by huge amounts of debt - so the owner doesn't have the full worth of the building after debt, most of the money is with the banks [0] [0]: https://www.census.gov/prod/1/statbrief/sb96_01.pdf https://www.census.gov/prod/1/statbrief/sb96_01.pdf
- vmception 6y ago
  A) every property financed by the time of that census article from 1996 is paid off now B) even the person from OP’s article owned business interests in various properties
  - whimsicalism 6y ago
    I'm not taking issue with your claim that there are plenty of people with a networth of at least 7.5 million - there are millions of them in the US alone. But most city apartment buildings aren't owned in full by a single person. The numbers are even more stark for more recent [0] [0]: https://www.jchs.harvard.edu/blog/who-owns-rental-properties-and-is-it-changing#:~:text=Institutional%20investors%20own%20a%20growing,Housing%20Finance%20Survey%20(RHFS) https://www.jchs.harvard.edu/blog/who-owns-rental-properties....
  - sokoloff 6y ago
    What’s the reasoning behind the claim in A? It’s extremely common to refinance (and in the US to 1031 exchange out of a property into others; might be a similar program in Canada). Much of the benefit of commercially owned real-estate comes from being leveraged. Paid-off property will cash flow better per door, but usually not per million of equity.