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We may have different definitions of "nice" here: it's easy to drop $20k on a single Italian leather sofa.
by resolutebat 3y ago
We may have different definitions of "nice" here: it's easy to drop $20k on a single Italian leather sofa.
- jeffbee 3y agoMaybe but I don't think that is the problem with their rebuttal. In reality the fraction of income people are spending on housing is going up. Their incomes are not proportional to their housing costs.
- anonymouskimmer 3y agoMore renters, too. A home owner, unless they are forced to move constantly, will often have a frozen mortgage payment which will allow the purchase of more expensive furnishings in later years. For renters the rent will keep increasing, eating up the increase in income.
- dehrmann 3y agoBut that hypothetical 20% down payment was in the stock market averaging 9% returns. Real estate in normal (not Bay Area) markets is more like 4%, but that doesn't include property tax or maintenance. The math isn't as clearly advantageous as conventional wisdom likes to claim, assuming you have the restraint to invest the money.
- anonymouskimmer 3y agoRenters are typically of lower socioeconomic status, so don't have that down payment invested in the stock market either.
- ChickeNES 3y agoPersonally, I could be a multi-millionaire and I wouldn't drop 20k on a sofa.