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Joined 1 year ago
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Cake day: June 4th, 2023

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  • But equity can be a losing strategy if you’re getting that little in a 30 year. Take the “winning the lottery” example. People always think, lump sum vs lifetime small payments? Always take lump sum. Invest it all in a safe ETF, and live off the interest.

    The only reason people “build equity” is to sell that house in the future. I’d much rather minimize my monthly expenses like principle and HOA, and invest that difference. The best part is that you can see that “investment equity” immediately, and sell any if needed.

    The market always beats house equity. For example, my parents bought a house in NYC for $340,000 in 2000. Today, it’s appraised for about $800,000. Big win right? NOPE. 340K in 2023 dollars is 600K meaning my parents got $200,000 in house equity over 2 DECADES. And that’s the extreme high side of house growth in the NE USA. I highly doubt others will do better than that, meaning their gains will be less. And the market DOUBLED in that time, meaning they’d have made much more money simply putting that money in an EFT and letting it ride. They can’t even realize that “house equity” until they leave their home, but they still need a place to live, so those wins are sitting until they decide to move later on, which is useless imo as they’d be older.

    Again, housing is not always the best way to make money. If you have the extra cash to do it, it’s nice to fix up a home you own like adding a pool that you can enjoy. But for someone who’s trying to make it big early on, investing in 401K, IRAs, and a general investment account are the best things to do when young.


  • imagine all that money in rent going towards your own equity

    IF you have a 15 year loan. If you have a 30 year loan, it takes you 14 YEARS to pay off just the first 25% of your loan balance, and that’s assuming you put 20% down, and not 10% like majority of people today. Then there’s house expenses like HOAs (if you get a townhouse or condo) or roof repairs, lawn care services, etc. Actually, depending on how long you plan on staying at a property, if you list out expenses plus the loan principle you pay each month, you actually might be paying more by getting a 30 year vs renting, depending on where you live.