3 ms·

How do you make money from owning and living in a house?

by www_harka_com 4y ago

jonfw 4y ago
Buy a house, live in it, sell it for more than you bought it for
quickthrower2 4y ago
It goes up in value. Also interests rates decreasing means more immediate money in lower living costs.
- bruce343434 4y ago
  You can't pay for groceries with those unrealized gains. You'd have to sell your house. Wait, where will you live?
  - Clubber 4y ago
    You can take out a loan on the house with the house as collateral. That's a tactic wealthy people use with their stocks. Also having a home equity loan is a good padding for rainy days.
  - quickthrower2 4y ago
    True but you can borrow against the house to invest, for example
- zarzavat 4y ago
  It’s a rather abstract view of making money. Other houses also go up in value. You only make money from the difference between how much houses in your area are going up, and how much houses in the area you want to move to are going up. And that difference may well be negative.
  - quickthrower2 4y ago
    If you live in a major metro area it is the opposite: the price of where you want to live to escape the rat race gets relatively cheaper
  - bluGill 4y ago
    A lot of people are doing a cash our refinance so they can capture the gains from their house value. I don't recommend it, but many people do.
  - iso1631 4y ago
    The alternate is not owning the house and instead paying rent, which means your rent would have to be far lower than the appreciating asset (house) and the cost of servicing the debt (interest part of the mortgage) That's certainly not the case in the UK. I'd be surprised if it were in the US
    - whimsicalism 4y ago
      The primary reason buying a house is better is because the government has put it's thumb on the we scale to allow you to leverage the fuck out of your assets. If you could get a loan of the same amount and yolo it into the stock market, I am not sure buying a home would come out better.
      - lmm 4y ago
        There's another piece of government interference that's a lot more relevant: it's a lot easier to get legal permission to start a company than to build a house anywhere remotely desirable.
mcculley 4y ago
* by ensuring that others pay more in property taxes * by ensuring that others cannot build, increasing value of your investment * by leveraging the deduction for mortgage interest The system is working as designed.

How do you make money from owning and living in a house?

jonfw 4y ago

Buy a house, live in it, sell it for more than you bought it for

quickthrower2 4y ago

It goes up in value. Also interests rates decreasing means more immediate money in lower living costs.

bruce343434 4y ago
You can't pay for groceries with those unrealized gains. You'd have to sell your house. Wait, where will you live?
- Clubber 4y ago
  You can take out a loan on the house with the house as collateral. That's a tactic wealthy people use with their stocks. Also having a home equity loan is a good padding for rainy days.
- quickthrower2 4y ago
  True but you can borrow against the house to invest, for example
zarzavat 4y ago
It’s a rather abstract view of making money. Other houses also go up in value. You only make money from the difference between how much houses in your area are going up, and how much houses in the area you want to move to are going up. And that difference may well be negative.
- quickthrower2 4y ago
  If you live in a major metro area it is the opposite: the price of where you want to live to escape the rat race gets relatively cheaper
- bluGill 4y ago
  A lot of people are doing a cash our refinance so they can capture the gains from their house value. I don't recommend it, but many people do.
- iso1631 4y ago
  The alternate is not owning the house and instead paying rent, which means your rent would have to be far lower than the appreciating asset (house) and the cost of servicing the debt (interest part of the mortgage) That's certainly not the case in the UK. I'd be surprised if it were in the US
  - whimsicalism 4y ago
    The primary reason buying a house is better is because the government has put it's thumb on the we scale to allow you to leverage the fuck out of your assets. If you could get a loan of the same amount and yolo it into the stock market, I am not sure buying a home would come out better.
    - lmm 4y ago
      There's another piece of government interference that's a lot more relevant: it's a lot easier to get legal permission to start a company than to build a house anywhere remotely desirable.

mcculley 4y ago

* by ensuring that others pay more in property taxes * by ensuring that others cannot build, increasing value of your investment * by leveraging the deduction for mortgage interest The system is working as designed.