hintklb

6 ms·

31.
by hintklb 1y ago
I don't even know where to start. The math is incredibly more complex than the back of the napkin example you just gave. (downpayment, taxes, hoa, repairs, insurance, realtors, closing fees??) But you are proving my point, you "th
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by hintklb 1y ago
> Erm, apart from the bit where you, you know, own the property meaning you can put pictures on the wall, and that's just the start... Maybe, just maybe, those benefits are not as big as the house ownership social class has made us
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by hintklb 1y ago
You need to review your assumptions. > There is no landlord renting at a loss. there absolutely is. Again, most people don't do the math. It's no different for their rental property. They think it is "worth it". >
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by hintklb 1y ago
exactly the way I think. Home ownership is what you do when you act on autopilot. If you think this through, it is essentially spending more money and more time on something very materialistic that doesn't matter that much. Renting all
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by hintklb 1y ago
I think you are missing the point entirely and have an "holier than you attitude" The whole point of optimizing for some things is exactly so that I can spend more time with my kids and wife. I will be retired in the next year (in
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by hintklb 1y ago
I'm not sure what you are talking about? I did way more in my 30s and 40s than most of my peers that are not mindful of anything. The whole point of opportunity cost is to be mindful of what you are spending your time and efforts on. I
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by hintklb 1y ago
And so is your sad judgement of other people.
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by hintklb 1y ago
I literally use opportunity cost as a reason to spend MORE time with my family. It is not about money strictly speaking but it is about maximizing what matters to you.
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by hintklb 1y ago
I have kids in school and none of your example holds.
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by hintklb 1y ago
your house is never truly yours. What happens if you stop paying taxes and HOA for example? You can never fully hedge against everything, live with it. There are no certainty in life and thinking that a house is yours forever is an illusion
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by hintklb 1y ago
At this point, the so-called tax benefits are mainly a realtor talking point (the same as "Renting is throwing money away")
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by hintklb 1y ago
I don't know why you think this is not taken into account by those calculator. They obviously include the cost of rent for a similar place...
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by hintklb 1y ago
I understand probability theories but I don't see how this applies here. I don't see either how the insurance concept applies for housing? There is a healthy rental market that will always exist, Are you arguing that you might get
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by hintklb 1y ago
except that those are not the numbers we have today (in the US, I don't know in the UK). Rather, for a $1M house: 1. The bank lends me $800k to buy a house with a 6.5% interest. you need to put 200k$ as a downpayment. 2. The rent equiv
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by hintklb 1y ago
I spend more time than 99.999% of people on this subject and I'm quite educated in economics. I'm not arguing that buying a house is never right. I'm arguing that on average, especially in today's environment it is extre
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by hintklb 1y ago
I fully agree with you. I also think that there are as many good intangible argument for owning as for renting. Renting allows you to be flexible for new opportunities. They allow you to focus on other things in life than your house, treat
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by hintklb 1y ago
All the calculators include leverage, yes. In fact leverage is absolutely required for real estate to even be considered an investment, and not even a good one. The fees, interest, etc are eating all the gains from the leverage. A leverage
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by hintklb 1y ago
you definitely came ahead by not buying and you did the math. Good for you! Generally, this holds true today for most HCOL and MCOL areas. It is still a good idea to buy in a few LCOL areas. What I have seen is that in high-earner areas (Ba
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by hintklb 1y ago
Oh I don't like renting, but so far it has saved me so...so much money that I will be able to buy as a luxury down the line something WAY better than if I bought directly. The difference is that I will treat it as a luxury. Not as an i
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by hintklb 1y ago
you obviously include the price of the rent-equivalent of the place you would buy in the math. Cannot even believe I have to say this.
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by hintklb 1y ago
Let me guess. You put 8$% of YoY house appreciation? 3% of YoY stock appreciation? 10% of yearly rent increase?
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by hintklb 1y ago
if you buy a house today, you are literally paying a "huge amounts so that it becomes unviable". Check the concept of opportunity cost.
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by hintklb 1y ago
Is this a condo with an outrageous HOA that you are not including? Many such cases that explain why condos are valued so much lower. In SF I have been renting a 1.6M$ townhouse for 4k$/month, and that is very typical of what you can fi
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by hintklb 1y ago
And I would agree. There are a ton of second order effect and more complex concepts that I have learned about over the years. Opportunity cost is still the key one I go back to so often.
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by hintklb 1y ago
That was the case initially. Now the prices have skyrocketed due to offer and demand, and frankly because of the narrative that "Buying is always good", which ironically makes it a subpar investment. Real estate is now a subpar in
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by hintklb 1y ago
This is wrong in so many ways. Just using the buy or rent calculator demonstrate this. You are essentially repeating realtor talking points ("Renting is throwing money out of the window"). You need to use real numbers and compare
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by hintklb 1y ago
It's worse than that. Buying a house without leverage is a terrible investment. The leverage is absolutely required because all the fees that come with real estate (Realtors, Interest, HOA, Taxes, Insurances, Closing costs, Downpayment
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by hintklb 1y ago
Thanks for clarifying. Being mindful of opportunity cost allows people to retire early, to spend more time with their loved ones, do better financial decisions. I have seen too many of my loved ones work until their 70s because they didn&#x
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by hintklb 1y ago
So It's really sad to think about the value of time or things? Don't you implicitly do that every time you chose an activity over another? When you chose a job over another? when you chose to spend your time with a friend or with
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by hintklb 1y ago
The best way to calculate those intangible is to associate a value to them, Most people love to say that owning is so good because they can decide on their own house improvement. Ok, but how much do you really value this over? Is it worth 2

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