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by lepton
1778 days ago
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By "income", parent is referring to employment income. But their true income is the real estate investment of their primary residence, which nearly doubles their income. They are borrowing $300k I guess (1.5m + 0.2m, less 1.4m), and will likely sell their new house for far more than $1.5m when they sell again in another dozen years. |
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Why do you assume this to be the case? It has been the story of the last 20 years or so, sure. But it could be a complete aberration in the historical timeline of real estate, which for many decades had real rates of return around 1% annually. Houses were not investments.
It's wild that people now assume it's "normal" that you buy a house a triple your money in a decade.