How housing became the world’s biggest asset class

Re:How housing became the world’s biggest asset class by refurb on Wednesday January 22, 2020 @02:45PM (#22121239)

This is very true.

I've talked to people who bought a house at $200K, then sold at $300K 5 years later. Crazy return right?

Then you account for maintenance, opportunity cost of the down payment, transaction fees, etc. Then you realize the actual return was 8% when the market has returned 12% since then.

Suddenly it doesn't seem like such a great return.

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Re:How housing became the world’s biggest asset class by SketchySeaBeast on Wednesday January 22, 2020 @03:56PM (#22121927)

If you want to get technical you'd also have to give credit for how much you're saving a month by not renting. That'll be a grand or two a month you're not having to spend while you live in your investment.

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Re:How housing became the world’s biggest asset class by refurb on Wednesday January 22, 2020 @03:59PM (#22121968)

Absolutely. The baseline would be renting and doing something else with the down payment. In a lot of cases, principle, interest, insurance and taxes are a wash with rent (obviously there are exceptions).

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