2 ms·
Some of the appreciation we've seen in the past decade where I live in California far exceeds the maintenance cost. If you own long term, then yes, you're like
by frumper 3y ago
Some of the appreciation we've seen in the past decade where I live in California far exceeds the maintenance cost. If you own long term, then yes, you're likely to average out much of those costs, but a lot of people are buying for a few years and selling. Unless you put any major repairs into it, you're making out like a bandit, and generally even if you did then you can still make out like a bandit. It isn't sustainable in the long term, but it's the mentality of the past decade.
- nightski 3y agoCA (where real estate exploded) is a niche market. It's great if you happen to live there. Most people can't identify a hot new real estate market and then upend their life to move there. There are plenty of years and locations where real estate actually decreases in value as well. If you are moving into a new house every few years that is particularly terrible, because you are throwing away a ton of money in closing costs and selling fees.
- frumper 3y agoCalling California niche isn’t accurate. I don’t live in the Bay Area or LA. It’s a significant population of the country. Aside from that, low interest rates have seen many places throughout the country see home values double, or more, over the last 10 years.