Palm Tree's & Blunts
Big timah timah
Exactly. Reps.
Jay Morrison Debates with Vlad on Whether Real Estate is a Scam
- Thread starter Pyrexcup
- Start date
Exactly. Reps.
This is not true and even the smartest people will tell you that just because something has happened for a long time, does not guarantee that it will continue doing so.
Using definitive words/phrases like "never" and "only gain" isn't correct.
The fact is, no one can predict anything, they can only "speculate". Even in economics you don't predict, you analyze what already happened, speculate, and even then that isn't enough to use phrases like "never lose value."
Look at Detroit, 40 years ago it was a booming housing market. Now you can buy a block for 50k.
Taking out a 20 or 30 years of debt to buy a house that you are speculating on is waaay more risky than people think it is.
Jay Morrison is that dude, I got mad respect for him. He's got a lot of great videos on his Youtube channel breaking down the real estate game and how black people can utilize it to build community wealth.
It would be dope to see him and Tariq link up, so many people are sleep on breh
It would be dope to see him and Tariq link up, so many people are sleep on breh
Mars Blackmon
Pro
The same poster that talked about the average White having generational wealth is arguing against home ownership 
I buy stocks.. I see results... I laugh at single family home owners.. If you ain't buying multi, hold this L... nope you're not seeing the difference due to fees to purchase the house, fees to sell the house, maintenance.. etc.. To me home ownership is like religion, old heads think it's golden but the new generation knows it's bullshyt..
Mars Blackmon
Pro
Are you a home owner?
it's like both sides are just choosing a position and then just adopting the talking points.
i watched a video earlier about this subject and dude made an interesting point. when you by with a mortgage you are renting money from the bank (interest).
buying has it's own type of risk if you take on a mortgage. If you are married and for whatever reason you separate, you might need to sell the house but during the time you sell the house, you might still need to rent another place plus pay the mortgage. the selling process could take months and has additional costs. and what if you separate in a time where it's a buyer's market? you might end up losing money on the sale after all costs are considered. saying houses always appreciate in value on average doesn't guarantee that the appreciation will be what it should be for you to break even at the time you sell.
samething if you lose your job.
Investments are the same. they depend on timing as well. say you're renting and have investments, say you need money, you could just sell a part of your investments. you can't sell 30% of your house though. You could borrow against it depending on how much equity you have and the regulations of where you are. but at the same time, i'd rather sell investments than borrow against my home.
The advantage of owning IMO are that if you plan on staying longterm and everything works out relatively well, you will come out ahead. you also have more space, more intimacy, more freedom to do whatever you want with your home, you don't have to wait on your landlord for stuff that needs fixing and it forces you to save in a sense by buying equity.
The advantages of renting are flexibility, less responsibility as far as repairs (plumbers, electricians, water heater, roof, etc, etc) but also as far as lawn mowing, snow, etc. and assuming you are investing the difference, your money is more liquid (although a lot of people don't have the discipline to invest the difference.
there is no clear cut answer as to which is better. Like with most things, it depends on your circumstances and personality.
EDIT: i lean more towards the renting side BUT this is just based on my personality. Then again, if it was truly a sweet deal, i would probably buy.
i watched a video earlier about this subject and dude made an interesting point. when you by with a mortgage you are renting money from the bank (interest).
buying has it's own type of risk if you take on a mortgage. If you are married and for whatever reason you separate, you might need to sell the house but during the time you sell the house, you might still need to rent another place plus pay the mortgage. the selling process could take months and has additional costs. and what if you separate in a time where it's a buyer's market? you might end up losing money on the sale after all costs are considered. saying houses always appreciate in value on average doesn't guarantee that the appreciation will be what it should be for you to break even at the time you sell.
samething if you lose your job.
Investments are the same. they depend on timing as well. say you're renting and have investments, say you need money, you could just sell a part of your investments. you can't sell 30% of your house though. You could borrow against it depending on how much equity you have and the regulations of where you are. but at the same time, i'd rather sell investments than borrow against my home.
The advantage of owning IMO are that if you plan on staying longterm and everything works out relatively well, you will come out ahead. you also have more space, more intimacy, more freedom to do whatever you want with your home, you don't have to wait on your landlord for stuff that needs fixing and it forces you to save in a sense by buying equity.
The advantages of renting are flexibility, less responsibility as far as repairs (plumbers, electricians, water heater, roof, etc, etc) but also as far as lawn mowing, snow, etc. and assuming you are investing the difference, your money is more liquid (although a lot of people don't have the discipline to invest the difference.
there is no clear cut answer as to which is better. Like with most things, it depends on your circumstances and personality.
EDIT: i lean more towards the renting side BUT this is just based on my personality. Then again, if it was truly a sweet deal, i would probably buy.
Larry Lambo
Superstar
Owning a home doesn't prevent you from investing in the stock market. I invest damn near as much in stocks as my monthly mortgage.
Field Marshall Bradley
Veteran
That's where a lot of money is, and most certainly will be in the near future....
Inflation is about 2-3% per year... Housing hoes up about 2-3% per year...
Since inception 1976.. The vanguard s&p 500 has averaged 10.97% per year...
Since 2012 it has averaged 15.25%
So buying a house is good if you want to be average and try to balance inflation...
Field Marshall Bradley
Veteran
Are you saying startups are publically traded?
Field Marshall Bradley
Veteran
Field Marshall Bradley
Veteran
It nullifies the point you were trying to make........
Dummies don't get it.. You put down 20% on $400,000 that's $80k you could have invested in a simple stock..
Let's say you like video games... I like destiny and call of duty.. So I invest in Activision Blizzard... Let's say I took that same 80k for the down payment and put it towards Activision blizzard stock 5 years ago... I would have $432,000...
Even a social media idiot could invest in Facebook and make more money in 5 years...
Real estate is only good if you own multi family homes or commercial real esate.. This is why Jay Morrison didn't argue the value of single family homes and only argued buying multi family units..