|
|
|
|
|
|
by pjc50
529 days ago
|
|
|
> Buying a house is a very expensive and slow way to build wealth. Buying a second house may be questionable, but the first house has so many tax and leverage advantages as well as "hedging" against the volatile rental market. Especially when Americans can get 30 year fixed mortgages! > but they can give their children a better life. it's certainly not easy, but it's possible. The working class, however (not the most poor), routinely chooses to put their money into flat screen tvs What if they want to give themselves a better life, rather than just their children? > flat screen tvs All TVs are flatscreen now. This is a "tell" that somebody is mentally copy-pasting a rant from the early 2000s. |
|
|
I hear this so the time from people who have never owned a home. It's partly true, but not as good if a deal as you think. True that you don't have to pay capital gains taxes when you sell, but that's true of 401ks when taking distributions.
As for HELOC loans, well that's more debit in to of your mortgage. You could get that from an SBLOC from your brokerage account, and under some circumstances, from a 401k. Again this is all more debit, and you don't want that unless you are desperate.
Finally, owning a home does not protect you from increasing housing costs. Increasing property values will increase your taxes and insurance every year, just like a rent increase. Maintenance costs will hit you like a hammer. In the end you pa thousands to maintain your home every year. The only reason to buy a house is to capture a small percentage of the over all cost in equity. But it takes about a decade before that saves money over renting.
All these people complaining about not being able to afford a home don't even have savings. First, get a few months of savings, then max out your 401k or open a brokerage account, then consider buying a house if you think you'll live there for a year.
>What is they want to give themselves a better life
That's not always possible. If you immigrate at the age of 50 and you're very poor, it might be too late. Still, many people will simply benefit from living in a more stable nation.
>All tvs are flat screen now
It was true in 2000 and it's true now. maybe I should have said 4k tvs? it makes no difference.