Jay Morrison Debates with Vlad on Whether Real Estate is a Scam

[Field Marshall Bradley]

A simple concept. People under this amusingly silly belief that real estate is not a perfectly suitable asset for the average individual

I didn't watch the video or read a lot of the posts, but if people are saying that, then yeah, they're mistaken....

HOWEVER, there are ways to go about it.... Start small, and avoid mortgages unless you really, really got it like that...

 

[Pimp]

LOL cue the usual bullshyt "run before you walk" youtube/business insider videos. This is the problem with this entire ethos. You basis on returns is simply done by listing the successful companies in the moment and thinking that if any idiot just runs in and invests thinking they'll enjoy the same rewards. There is really no guarantee that Facebook will maintain the same hegemony over social media in the 5-10 years. None.

The stock market should never be treated by the average investor as something to expect massively high yields in short periods.

Which is exactly why I used basic index funds that track the s&p 500 and get better returns than single family homes..

My basis is based on real life man...

 

[Larry Lambo]

Which is exactly why I used basic index funds that track the s&p 500 and get better returns than single family homes..

My basis is based on real life man...

Breh, it's not buying versus investing. It's buying vs. renting.

The person that buys still has money to invest, and if anything mortgages are usually cheaper than rent of a comparable home.

The only situation where a buyer HAS to pony up more cash is with a down payment, and all that is going to do is reduce the mortgage even further, and enabling said buyer to have more money to invest.

Investing is the number one thing you should do with your money, no doubt. However, buying a home is something that can be a way to save money over the long term because of the equity derived vs spending it on rent and not building any equity. If you can rent for much cheaper, then you should rent. But if they are comparable, then buying usually works out in the long run.

 

[Pimp]

Breh, it's not buying versus investing. It's buying vs. renting.

The person that buys still has money to invest, and if anything mortgages are usually cheaper than rent of a comparable home.

The only situation where a buyer HAS to pony up more cash is with a down payment, and all that is going to do is reduce the mortgage even further, and enabling said buyer to have more money to invest.

Investing is the number one thing you should do with your money, no doubt. However, buying a home is something that can be a way to save money over the long term because of the equity derived vs spending it on rent and not building any equity. If you can rent for much cheaper, then you should rent. But if they are comparable, then buying usually works out in the long run.

Man this shyt depends where you live.. Some of you nikkaz live in poor ass states in the south where the property is cheap and the tax is low... My coworker put down $110,000 on his house and his mortgage payments are $2100... I was like damn man... Could have just invested that $110,000 in FANG stocks and my man would be sitting high right now.. Buy a big ass house, with no kids brehs because society tells you to.. This dude spent his fukking last dollar on that shyt and i'm just sitting there like ..

It is rent vs investing because that down payment, closing cost, could have been invested, the money you save on rent is a lot lower than a mortage in NY/NJ.. Like the $12,000 a year for taxes which is you renting the land... Sometimes i wonder if people include that.. I'm not even gonna argue you this shyt.. This is like a atheist vs christian...

 

[Mowgli]

Vlad dont have the knowledge so had to move to a lane he thought he had mastered.

Still schooled. dumb faggit

 

[Turbulent]

Breh, it's not buying versus investing. It's buying vs. renting.

The person that buys still has money to invest, and if anything mortgages are usually cheaper than rent of a comparable home.

The only situation where a buyer HAS to pony up more cash is with a down payment, and all that is going to do is reduce the mortgage even further, and enabling said buyer to have more money to invest.

Investing is the number one thing you should do with your money, no doubt. However, buying a home is something that can be a way to save money over the long term because of the equity derived vs spending it on rent and not building any equity. If you can rent for much cheaper, then you should rent. But if they are comparable, then buying usually works out in the long run.

but the person buying has less cash per month to invest. depending on the markets you live in and typical expenses associated with buying, maintaining, and selling a house, you could run simulations of renting and investing the down payment + the extra cashflow from paying lower per month on an index fund VS. buying a home and it gets pretty close as far as wealth. changing some variables slightly can make either one come ahead. the last point you made about if rent is roughly the same as mortgage payment, i think you could be right in some instances (again depending on your lifestyle, circumstances and temperament). unless you're talking about borrowing money on your house and then either invest that money in stocks or in something else which i personally don't feel comfortable with (which again depends on personality and temperament).

As the saying goes, there are multiple ways to skin a cat. Multiple ways to win. Not everyone is going to win the exact same way.

 

[Turbulent]

Man this shyt depends where you live.. Some of you nikkaz live in poor ass states in the south where the property is cheap and the tax is low... My coworker put down $110,000 on his house and his mortgage payments are $2100... I was like damn man... Could have just invested that $110,000 in FANG stocks and my man would be sitting high right now.. Buy a big ass house, with no kids brehs because society tells you to.. This dude spent his fukking last dollar on that shyt and i'm just sitting there like ..

It is rent vs investing because that down payment, closing cost, could have been invested, the money you save on rent is a lot lower than a mortage in NY/NJ.. Like the $12,000 a year for taxes which is you renting the land... Sometimes i wonder if people include that.. I'm not even gonna argue you this shyt.. This is like a atheist vs christian...

exactly! the red part is spot on.

i agree with the rest overall but like you pointed out, it depends on circumstances.

 

[Wise]

Am I the only one who didn't know he sold drugs?

Take this from me, it's very difficult and basically impossible for someone to just break a profitable drug phone because "they want out". He could've sold that phone line for a one time lump sum to someone. There's more to the story.

 

[GrindMode]

Am I the only one who didn't know he sold drugs?

Take this from me, it's very difficult and basically impossible for someone to just break a profitable drug phone because "they want out". He could've sold that phone line for a one time lump sum to someone. There's more to the story.

huh? phone?

 

[Wise]

huh? phone?

phone = all of his customers. a lot of customers is a very profitable phone

 

[Bunchy Carter]

He ain't being all of the way truthful, the know he put some of that coke money in the game, flipped it and became legit. shyt, the Mexicans do it in Texas. That said, capital is the biggest issue most Black realtors I know have an issue with.

I will say this, I know dope dealers who were really pushing work. Most of them have a business sense that is quite impressive. Too impressive but that need for fast money is usually their issue but they are THROUGH af! Made me think how hard it is to make it in their game.

Why does that matter?

You sound like a pillow talking female, with the whole, I know drug dealers and shyt. That's how I can tell your not a street dude, because that's the #1 goal, filp your dirty money into clean money.