Ezekiel 25:17
Veteran
I asked how it'd be sustainable, but that shyt might be Brazil 2.0
Working class in Socal ain't $125k-200k?
SoCal couple struggles to purchase an affordable home off their $350k annual income
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I asked how it'd be sustainable, but that shyt might be Brazil 2.0
Working class in Socal ain't $125k-200k?
NZA
LOL
high income people dont always get the most return on investment from the house they live in. they make so much money that theoretically they can invest it in something that grows faster and is more liquid. renting exactly where they want to live makes sense in this case
The math aint mathin.
This couple is throwing away $4500 a month that is gone and never coming back. Paying any mortgage will get you:
the amount you’ve paid on the loan + appreciation minus interest. Even if your shyt depreciates you only lose depreciation and the interest. Maybe some repairs or upgrades.
In no way shape or form is spending $4500 a month that you won’t get back coming out on top. Not to mention that mortgage principal payments are usually lower than the rent the mortgage holder charges.
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These are underwhelming me at 900K but I guess I can't say anything if that's what's there.It depends on where I work and if I'm remote or not. If I'm remote I would live exactly in the neighborhoods I showed you. But at the end of the day, they are not having a hard time finding a house in CA, they are having a hard time finding their DREAM house in CA. The word "Dream" changes it because buying your dream house is a luxury...they said they can spend $1M...they can definitely find something for 1M. \
$900k in North Hollywood
$900k in Porter Ranch
$900k in LA.
If they can't find a house they can afford making $350k/year the answer is why...and it's most likely that they want to live in the same ritzy neighborhood they are renting in for $4500 but can't afford to buy so they are tagging along on the "So Cal is too expensive" bandwagon but are being totally disingenuous.
if you're thinking about buying a house in california, you might as well take your money and burn it, because that is what's going to happen to that house in the next couple of decades. Be in your mid 30's and spend millions on a house in a state that is going to turn into Mad Max fury Road in the next 15 to 20 years crehs
NZA
LOL
life isnt just math. it is also experience. if you really want to be in a certain area, that has a subjective value to you. if your material needs are taken care of, and your net wealth is still growing through other means, it may not matter to some people that they are not maximizing close to 100% of their outgoing cash. they are still gaining wealth but also living where they want to live.
IsThatBrothaMouzone?
Veteran
Agreed.
Housing is the tool most middle class people use to store wealth....as opposed to ETFs, Mutual Funds etc.
The stock market has always had more consistent ROI while housing is a roller coaster ride.
All things being equal, buying makes more sense but things are not always equal. The $50k someone saved up could be invested in the market and earn a decent 5, 6, 7% return every year. Instead of sinking it into a home that requires repairs, HOA fees, property tax etc., the money can be put to work immediately and then you rent.
The renter vs buyer comparison tends to ignore the fact that most buyers have more money to start with....that's why they can afford to buy in the first place. At the very least they've received cash infusions from family members to get them set up.
Those "white people have higher net worth than black people" articles point out the dollar differential but ignore that the gap is almost entirely predicated on one group having all of their wealth tied to their homes and the other group not being able to afford buying...or they buy in less expensive areas.
I am scoffing at the idea that they casually mention saving $5,000 a month. They could easily buy a home, pay it off in 10 years, and then save towards their retirement.
The economy is fukked up, but they're not part of the struggle.
the bossman
Superstar
Like the breh mentioned before it depends on your lifestyle. Money is a tool. It is coming out on top if it allows you to live the exact lifestyle you want to live in the exact location you want to live while still affording you the ability to make other investments that appreciate just as much if not more than a home would. On top of that the complete flexibility to bounce at a moments notice as opposed to needing to stick around for several years before you break even. This is worth a lot especially if your career is on the up and up. And hands free of maintenance costs. All that saved money can go to other investments.
You struggle with this mindset that there are other viable and lucrative investment vehicles than real estate and also less headache when you account for maintenance and tenant risks.
So long as you are still able to invest in other ways after your rent is paid then it's a great situation. After all, it's all about the math as you say right? Profit is profit whether it's coming from real estate, business, equities, or even crypto.
the bossman
Superstar
Treating your primary residence as an investment is a pretty poor one imo after all the costs, taxes, and location lockdown factor for several years at least to turn profit. There's other less stressful and less lifestyle restricting investments. Home is more about lifestyle.
Them "it's all math" nikkas are usually the type to spend their entire life living shytty just to have couple milly saved at 70 when you barely have the energy to do anything worthwhile
Armchair Militant
Stay woke
They need to lower their standards.
Everybody is right to a point. Yeah, renting most Def gives you flexibility if you know you're in a place that's not in your long term plans. And I don't look at a mortgage as an investment but the thing people always leave outta this equation is you're going to get OLD. Yeah keep renting your whole life and you'll be paying a landlord $4500 a month to live when you're 70 years old in Toledo or some crazy shyt cause it's gonna continue to rise. This is why people work until they die. My mortgage is much cheaper than what rent would be if I didn't have it.
Disclaimer: I know getting a house is easier said than done so not judging that at all if you're not in a position where you can, cause it's ridiculous now.
Median income is misleading. Most of those people bought homes with assistance
It’s because it’s in that space between LA and San Diego. It’s all about location.