So dudes on the coli really think owning is more important than money lol.

[King]

You invest in appreciable assets because that allows your money to make more money for you.

If you purchased a home 12 years ago for 250k in Charlotte it's probably worth at least 450k.

You've now invested 150k for a 200k profit.

If you invested 100 dollars in Coca Cola stock 101 years ago you would have 1 billion dollars profit right now.

Keep playing catch up tho

 

[ultraflexed]

How does this logic make any sense when ALL CASH buyers are running the real estate game now making it almost impossible for a middle class family to purchase a home?


Please stop this nonsense thinking. Money is the most valuable asset in the world. You literally can’t do anything without it including owning anything

No...credit is more valuable...

 

[CreepyMcCreeperson]

If you pay cash for a home, you have paid the entire cost out of pocket. If you finance a home, and sell before you pay off the mortgage, you’ve covered the mortgage, plus profit, so you have more cash on hand for other things, or to sit in a high yield savings account to earn interest.

House: 200K

Mortgage: 1200

Live there 5 years: 72,000 out of pocket in mortgage payments

OR

200K out of pocket upfront

 

[™BlackPearl The Empress™]

How does this logic make any sense when ALL CASH buyers are running the real estate game now making it almost impossible for a middle class family to purchase a home?


Please stop this nonsense thinking. Money is the most valuable asset in the world. You literally can’t do anything without it including owning anything

Let me help you out.

If you own a business and you make a million dollars in profits and take it out the company then you pay taxes on it. 40% I believe.

However if you instead use that million dollars to buy a million dollars worth of real estate (within the company) and then borrow against the real estate and get a million dollar loan with a very low interest rate 1.You don't have to pay taxes on the loaned money 2. Don't have to pay taxes on the repayment.

You can do the same thing with stocks.

That is why assets are better. They hedge against inflation because they appreciate and they give you the ability to get cash that is not taxed.

I think the best to have high cash flow, live debt free and reasonable and then use the excess cash to purchase assets. Also set aside a small amount of cash for emergencies.

 

[Mike Nasty]

Op doesn’t know how to articulate his intuition but he is partly right.

if u use all the cash u have to buy a house, that wouldn’t be smart.

The trick is to have enough cash on hand that the expenditure of a 20% down payment on a house wouldn’t cause any type of financial hardship or discomfort.

I don't think that's his point. Judging by his name I'm guessing has money but isn't able to buy property, and is tired of being flexed on by middle American home owners.

 

[UpAndComing]

Cash flow from Assets >>>>> Appreciation >>>>> Cash

 

[itsyoung!!]

Assets that appreciate >>>>>> cash.

Only after a certain amount.

example: if you have $2 million liquid cash and want to put $50k down on a property to rent it out to cover your mortgage until you can find a buyer in a few years to buy it off you for a profit — that makes sense as it wouldnt effect your daily life.

but if you have $60k and do that same scenario, thats a horrible investment.

for one, a mistake I commonly see in young dumb entrepreneurs who lose they ass on real estate is this above scenario. If you are renting for “profit” (example mortgage is $1500, you want to rent for $2000 - $500 “profit” a month) but the truth is, it would take 8 years to break even.

10 years to make $10,000 profit.

thats a horrible return. With high risk (2-3 costly repairs like a roof or leak, etc could wipe out 10 years of work in 1 day).

real estate, like the stock market, is a rich person game. If you have fukk it money, then it generates you more money to invest, then blow it on tables in vegas. Sure. But they didnt make all that money from blowing almost all their money into 1 property.

 

[Damba]

So people with cash, actually corporations, are giving up cash to own property.

You did not think this through.

op rn

 

[Greenhornet]

I know what youre trying to say but people only make half baked answers and questions on here.


If you have one you have the other. But most people are too broke to understand that, and expose themselves in all of these threads. If you have money you can own obviously. And if you own you save money. It's not a hard concept.

Once you bring all the extra shyt into play, you've already exposed yourself as struggling...(Not you OP just in general)


I'll tell you the true broke language that's not real. It's what fukks these types of discussions up. You aren't actually talking about ownership if you are borrowing some shyt. You are holding that and it's not yours yet. People need to say "I'm on my way to owning a car" and "I'm on my way to owning a house" but pride kills and that's why these topics come up in the first place.

People that "own" and/or "have money" don't worry about any of this fake borrowing shyt. So you're technically right by saying "actually having the bread"

I dunno other countries, but maybe it's just how America is where people claim ownership when they haven't actually paid some shyt off. It's hard to argue one view or the other when you're lying and stuck in the middle if you say I own but still owe. You are neither but pretending to be whichever.

Just call that shyt mortgaging my future home...it's not the same till it's done

 

[Uitomy]

Well first off cash is not money, cash is FIAT, silver, gold, that's real money. "Fiat money is a currency established as money, often by government regulation. Fiat money does not have intrinsic value and does not have use value. It has value only because a government maintains its value, or because parties engaging in exchange agree on its value- wikipedia. So like other posters have said, it's telling when so many corporations and people are handing money over hand and fist for assets,

 

[fifth column]

If you pay cash for a home, you have paid the entire cost out of pocket. If you finance a home, and sell before you pay off the mortgage, you’ve covered the mortgage, plus profit, so you have more cash on hand for other things, or to sit in a high yield savings account to earn interest.

House: 200K

Mortgage: 1200

Live there 5 years: 72,000 out of pocket in mortgage payments

OR

200K out of pocket upfront

This makes little to no sense because a house is not a piece of art.

 

[Taadow]

Cash is king,

Kings die all the time, and they get a new King and the Kingdom goes on.

Kings matter because they have dominion over chit, which is ownership.

 

[Ahadi]

This makes little to no sense because a house is not a piece of art.

Technically if you appraise, clean it up, install new appliances, make repairs, staging and flip it against the other comps in the area. That’s definitely art. Atleast IMO.

There’s going to always be appreciation as well.

 

[fifth column]

I know what youre trying to say but people only make half baked answers and questions on here.


If you have one you have the other. But most people are too broke to understand that, and expose themselves in all of these threads. If you have money you can own obviously. And if you own you save money. It's not a hard concept.

Once you bring all the extra shyt into play, you've already exposed yourself as struggling...(Not you OP just in general)


I'll tell you the true broke language that's not real. It's what fukks these types of discussions up. You aren't actually talking about ownership if you are borrowing some shyt. You are holding that and it's not yours yet. People need to say "I'm on my way to owning a car" and "I'm on my way to owning a house" but pride kills and that's why these topics come up in the first place.

People that "own" and/or "have money" don't worry about any of this fake borrowing shyt. So you're technically right by saying "actually having the bread"

I dunno other countries, but maybe it's just how America is where people claim ownership when they haven't actually paid some shyt off. It's hard to argue one view or the other when you're lying and stuck in the middle if you say I own but still owe. You are neither but pretending to be whichever.

Just call that shyt mortgaging my future home...it's not the same till it's done

The greatest marketing scheme ever created by the banking system is tricking suckers into thinking they own something when they are just renting from the bank with mortgage payments. The bank doesn’t even want to own anything that’s for suckers instead the power comes from control. You want to control and leverage things not necessarily own them.

 

[fifth column]

Technically if you appraise, clean it up, install new appliances, make repairs, staging and flip it against the other comps in the area. That’s definitely art. Atleast IMO.

There’s going to always be appreciation.

Hard to make real money flipping