3 ms·

Buy a house? Or I suppose any appreciating assets.

throwaway0a5e 6y ago
Houses and land don't really appreciate unless there's some factor constraining supply in the face of stable high demand for example waterfront property within reasonable distance of major cities, land in a city that's full of morons who vote for regressive policies that limit development, the land has an industrial facility on it that couldn't be built today but is grandfathered in, etc. etc. Also, housing is highly inflated right now. By buying you're buying into a bubble and betting that the inflation will outrun the pop.
- heleninboodler 6y ago
  I think it's less "things that appreciate" than "things you buy at today's prices and pay for over the next 30 years" that makes real estate attractive when there's inflation.
- prepend 6y ago
  They do during inflation. Inflation is just dollars being worth less so any asset with value (typically ones that appreciate) will increase roughly in track with inflation. So the value stays the same but the number of dollars go up. This is separate from housing prices being higher and in a bubble, etx
heymijo 6y ago
Housing is madness right now. I’m in a neighborhood under construction. It cost about $5xxk to build one a year and a half ago. One of those homes went on the market this weekend for $750k. One day bidding war and it sold for $820k. I have no idea what to make of this
- sjg007 6y ago
  I don't know who or how they have enough money.
  - katbyte 6y ago
    Free money from next to nothing interest rates?
    - sjg007 6y ago
      You still need enough cash flow to qualify...
  - sempron64 6y ago
    For an 850K home at 15% down which is 127K, you need to have about 170K saved to comfortably buy the home. Even on a relatively modest tech industry salary or with a 2-income household at a salary of 60K (120K joint) without children this is a very attainable amount of savings over say 5 years. Obviously not everyone makes this much money but it is an attainable amount, But just realize that almost nobody buys for cash and buyers are usually saddled with the debt for the rest of their lives. This is how home buying has worked in high income areas for 30 years at least.
- just_one_time_ 6y ago
  You do know,it's why you're commenting here, it means MASSIVE inflation, there are just very few exit ramps. I want to get out of some Bitcoin Cash right now and don't have many options. Gold and silver are compromised markets, stocks could drop any second, buying a second home is really my only option.
- _kbh_ 6y ago
  Last year within 5 months a house sold for 750,000 USD more then it was bought for adding 60% to its price. Housing is broken in a lot of places atm.

Houses and land don't really appreciate unless there's some factor constraining supply in the face of stable high demand for example waterfront property within reasonable distance of major cities, land in a city that's full of morons who vote for regressive policies that limit development, the land has an industrial facility on it that couldn't be built today but is grandfathered in, etc. etc. Also, housing is highly inflated right now. By buying you're buying into a bubble and betting that the inflation will outrun the pop.

heleninboodler 6y ago
I think it's less "things that appreciate" than "things you buy at today's prices and pay for over the next 30 years" that makes real estate attractive when there's inflation.
prepend 6y ago
They do during inflation. Inflation is just dollars being worth less so any asset with value (typically ones that appreciate) will increase roughly in track with inflation. So the value stays the same but the number of dollars go up. This is separate from housing prices being higher and in a bubble, etx

heymijo 6y ago

Housing is madness right now. I’m in a neighborhood under construction. It cost about $5xxk to build one a year and a half ago. One of those homes went on the market this weekend for $750k. One day bidding war and it sold for $820k. I have no idea what to make of this

sjg007 6y ago
I don't know who or how they have enough money.
- katbyte 6y ago
  Free money from next to nothing interest rates?
  - sjg007 6y ago
    You still need enough cash flow to qualify...
- sempron64 6y ago
  For an 850K home at 15% down which is 127K, you need to have about 170K saved to comfortably buy the home. Even on a relatively modest tech industry salary or with a 2-income household at a salary of 60K (120K joint) without children this is a very attainable amount of savings over say 5 years. Obviously not everyone makes this much money but it is an attainable amount, But just realize that almost nobody buys for cash and buyers are usually saddled with the debt for the rest of their lives. This is how home buying has worked in high income areas for 30 years at least.
just_one_time_ 6y ago
You do know,it's why you're commenting here, it means MASSIVE inflation, there are just very few exit ramps. I want to get out of some Bitcoin Cash right now and don't have many options. Gold and silver are compromised markets, stocks could drop any second, buying a second home is really my only option.
_kbh_ 6y ago
Last year within 5 months a house sold for 750,000 USD more then it was bought for adding 60% to its price. Housing is broken in a lot of places atm.