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A home is a really silly investment (i know that goes against the prevailing "wisdom"). the economic opportunities of living in an urban area coupled with inves

by r14c 2y ago

A home is a really silly investment (i know that goes against the prevailing "wisdom"). the economic opportunities of living in an urban area coupled with investing in things that are actually economically productive are more likely to benefit you in the future. does your suburb's tax base cover the infrastructure maintenance costs? is this why suburban folks are so sensitive to their property values, because any little thing could send the development into a tail spin? sounds like a pretty dodgy investment to me.

TheAmazingRace 2y ago
A home is considered the new hotness, and if you don't own one, you're not financially smart for some reason. At least this is according to the hivemind at /r/personalfinance. Meanwhile, there are very legitimate reasons not to own a property. Methinks people buying right before COVID at rock bottom interest rates has clouded the judgement of many. This is not a sure fire road to success right now, I can tell you that much.
- thaumasiotes 2y ago
  > and if you don't own one, you're not financially smart for some reason. At least this is according to the hivemind at /r/personalfinance. The government will give you a bunch of free money to leverage an investment in real estate. This isn't true of other investments.
  - TheAmazingRace 2y ago
    And this free money, much like government guarantees for student loans, has only exacerbated the situation between the haves and the have nots.
  - r14c 2y ago
    most investment assets can be financially leveraged. IMO suburb home ownership provides more of an illusion of financial security and leverage than the real thing. being able to buy a house, condo, or apartment in an urban area is a much more significant marker of financial success than doing the same in a heavily subsidized development with limited economic productivity.
    - thaumasiotes 2y ago
      > most investment assets can be financially leveraged Yes, but for most of them you need to convince someone else that giving you the money is a good idea.
- cooper_ganglia 2y ago
  I think it's financially smart to attempt to no longer be at the behest of a landlord's whim to raise rent. Home ownership is not even close to being out of reach for young people (like myself), but living in or near a city center absolutely is.
  - TheAmazingRace 2y ago
    And I agree with you. I've made this point on an earlier thread here on HN... but the prices and interest that goes along with it is absolutely insane in places that are remotely desireable (see Phoenix, AZ) and I'd need to be effectively house poor, when the same place I looked at five years ago I could have afforded with my salary at the time no problem. Such is the dreaded once-in-a-lifetime catastrophe like COVID and the money printing scam that happened after that that destroyed so much value in money. But others that got in before me at historically low interest and reasonable asset prices just tell me I need to buck up and work harder. I bet you they would be shitting bricks if they were in my shoes. It's like a nightmare I haven't been able to wake up from. :(
    - cooper_ganglia 2y ago
      I don't disagree with anything you said, but I do think that people would generally be a lot happier if they can find comfort in living a relatively simple life. I know most people can't just uproot themselves instantly, but in my personal opinion, living somewhere more rural is 100% worth it in every single way. Lower cost of living, closer local communities (you GOTTA give a friendly wave when you drive past a stranger on a backroad, them's the rules!), more sunshine, fresh air, wide open fields... The job market isn't as competitive as the Bay Area, but if you can remote work and/or get a local non-tech job making a livable wage (there's so many lifted trucks out here, these guys make money), it almost doesn't matter what you do for work, it pays the bills and you can spend time with family after that. You have a house, you have a car, you have a family, maybe you even have a camper like many others around you, and you go camping at the lake every month in the summer! Truly, rural living can actually be an idyllic paradise if you do it right!
dustincoates 2y ago
I don't own, because I think it's best for my children if they grow up in this city, and the city happens to be one where unless you hit the jackpot (literal or parental) or decide not to save for retirement, you aren't owning. And yet... I wish we could. I know it's not a great investment monetarily, but there are the fringe benefits, like being able to make the place my own or knowing that I'm not going to have to relocate the kids in a couple of years with a few months' notice because the landlord decides he wants the unit back.

by r14c 2y ago

TheAmazingRace 2y ago

A home is considered the new hotness, and if you don't own one, you're not financially smart for some reason. At least this is according to the hivemind at /r/personalfinance. Meanwhile, there are very legitimate reasons not to own a property. Methinks people buying right before COVID at rock bottom interest rates has clouded the judgement of many. This is not a sure fire road to success right now, I can tell you that much.

thaumasiotes 2y ago
> and if you don't own one, you're not financially smart for some reason. At least this is according to the hivemind at /r/personalfinance. The government will give you a bunch of free money to leverage an investment in real estate. This isn't true of other investments.
- TheAmazingRace 2y ago
  And this free money, much like government guarantees for student loans, has only exacerbated the situation between the haves and the have nots.
- r14c 2y ago
  most investment assets can be financially leveraged. IMO suburb home ownership provides more of an illusion of financial security and leverage than the real thing. being able to buy a house, condo, or apartment in an urban area is a much more significant marker of financial success than doing the same in a heavily subsidized development with limited economic productivity.
  - thaumasiotes 2y ago
    > most investment assets can be financially leveraged Yes, but for most of them you need to convince someone else that giving you the money is a good idea.
cooper_ganglia 2y ago
I think it's financially smart to attempt to no longer be at the behest of a landlord's whim to raise rent. Home ownership is not even close to being out of reach for young people (like myself), but living in or near a city center absolutely is.
- TheAmazingRace 2y ago
  And I agree with you. I've made this point on an earlier thread here on HN... but the prices and interest that goes along with it is absolutely insane in places that are remotely desireable (see Phoenix, AZ) and I'd need to be effectively house poor, when the same place I looked at five years ago I could have afforded with my salary at the time no problem. Such is the dreaded once-in-a-lifetime catastrophe like COVID and the money printing scam that happened after that that destroyed so much value in money. But others that got in before me at historically low interest and reasonable asset prices just tell me I need to buck up and work harder. I bet you they would be shitting bricks if they were in my shoes. It's like a nightmare I haven't been able to wake up from. :(
  - cooper_ganglia 2y ago
    I don't disagree with anything you said, but I do think that people would generally be a lot happier if they can find comfort in living a relatively simple life. I know most people can't just uproot themselves instantly, but in my personal opinion, living somewhere more rural is 100% worth it in every single way. Lower cost of living, closer local communities (you GOTTA give a friendly wave when you drive past a stranger on a backroad, them's the rules!), more sunshine, fresh air, wide open fields... The job market isn't as competitive as the Bay Area, but if you can remote work and/or get a local non-tech job making a livable wage (there's so many lifted trucks out here, these guys make money), it almost doesn't matter what you do for work, it pays the bills and you can spend time with family after that. You have a house, you have a car, you have a family, maybe you even have a camper like many others around you, and you go camping at the lake every month in the summer! Truly, rural living can actually be an idyllic paradise if you do it right!

dustincoates 2y ago

I don't own, because I think it's best for my children if they grow up in this city, and the city happens to be one where unless you hit the jackpot (literal or parental) or decide not to save for retirement, you aren't owning. And yet... I wish we could. I know it's not a great investment monetarily, but there are the fringe benefits, like being able to make the place my own or knowing that I'm not going to have to relocate the kids in a couple of years with a few months' notice because the landlord decides he wants the unit back.