Renting and reinvesting the savings from renting, will outperform owning and building equity

[Fat Fred Jones]

You missed the whole point.. You shouldn't be living in an "investment" you should be getting a rate of return higher than the 3% your house appreciates at..

So where does one live in the mean time? You can pay, for example, $1000 in rent or $1000 towards a secure asset. I choose not to look at a homestead as an investment, but if one considers it an investment, wouldn't a home be part of diversifying one's portfolio? It's historically one of the safest means of building equity/wealth. You're paying the $1000 a month anyway.

 

[Pimp]

So where does one live in the mean time? You can pay, for example, $1000 in rent or $1000 towards a secure asset. I choose not to look at a homestead as an investment, but if one considers it an investment, wouldn't a home be part of diversifying one's portfolio? It's historically one of the safest means of building equity/wealth. You're paying the $1000 a month anyway.

Let's face reality. In Jersey if you spend under 400k you're living in a dump. 20% of 400k is 80k.. That's the part you're missing. You take that 80k and invest it in your own business or stock or even a rental property instead of spending that on something that doesn't pay you.

 

[mrfortune]

one of my best buddies got his first home and converted it for rental units. now his mortgage is covered and he makes 3k on top

 

[dora_da_destroyer]

Gotcha...I understand that
The usage of that word in economics is disingenuous...
If a homeless guy made 40 bux washing windows, you wouldnt call that money "wealth"... even tho that is the sum of his assets.

The usage of that word makes ppl actually think they will have wealth...eventually
The way ur explaining why ppl should buy a house... ur saying they are going to build wealth.
But ur really saying they are going to acquire some more money... correct?
If that's all ur saying then.. we are in agreement.
And everybody knows that u can make money off of a house... it appreciates pretty much every year.
The issue for me is others have actually become WEALTHY, generationally weathy... off of the common mans pursuit to make "some money" or just to have a nice roof over his head.

Wealth isn’t just money, it’s assets. So no we don’t agree

and there is someone at the top of every enterprise making generational wealth off of the common man making money or building moderate wealth. So are you not going to play the game cuz you’re worried about what someone else has? Worried about someone else having more? Unless you’re Jeff bezos/bill gates...someone else has more

 

[mag357]

Wealth isn’t just money, it’s assets. So no we don’t agree

and there is someone at the top of every enterprise making generational wealth off of the common man making money or building moderate wealth. So are you not going to play the game cuz you’re worried about what someone else has? Worried about someone else having more? Unless you’re Jeff bezos/bill gates...someone else has more

Assets mean nothing if it doesnt bring back cold hard cash when its liquidated...so yes ...wealth has to mean money... but I understand that's just how it is when talking economics...

And Yes... u do worry about what someone else is making... that's business...

If I bought a key of coke from someone for 25k...
Ima be curious about how much he got it for...
I wanna find a way to get his price...

I might just be making some money...
He might be getting wealthy as the Plug.

I'm saying to you...
The banks are the plugs.
Ur making them wealthy and ur cool with just making some money, calling it "wealth".

You can buy a property outright and rent it...
Or invest that big ass down payment on urself with an idea, start a business... or play the market...
fukk it, buy some coke lol....
Theres more investment opportunities then sitting in a home for 10, 20yrs

Your in here acting like buying a house is the best way to make some money... "wealth"...
And if we not buying a house then we are dumb.
And If ur renting then ur dumb...yada yada yada

Unless ur talking about actually acquiring real wealth from mortgaging a home...
Then u cant tell us people are stupid for renting...
Theres alotta ways to just make money

 

[10bandz]

Invest Now - Cardone Capital

I guess y'all only want to post white folks advice when it works in your favor. Except he operates a multi-million dollar real estate empire.

Exactly. Vlad and that cac know what they're doing

 

[desjardins]

The wealth gap between whites and blacks in this country is largely based on the effects of whites being able to buy homes in the 50s and 60s
I’ve seen people do the math on the investing vs buying thing and it may work out for people but it’s a lot of assumptions re returns made usually
Buying a house locks in a payment and in Some scenarios might leverage the ability to cash out if shyt hits the fan
Also these discussions always assume investments don’t flop
But yea I live in one of the best neighborhoods in my city and my mortgage is $1200 with total payment of $1500 with property taxes included
Avg rent for desirable neighborhoods like mine is now $1800. I could easily rent my crib out for $2000 a month
According to Zillow it appreciated $70k in 3 yrs
15 yrs from now my mortgage will still be $1200 and the avg rent will likely be $2500+ at this rate
Oh and if nycers, Chinese investors, and hipsters keep moving here the value will likely double by then
Oh and I have 6 figures in vanguard funds too. It’s entirely possible to buy a house AND invest money btw

 

[dora_da_destroyer]

Assets mean nothing if it doesnt bring back cold hard cash when its liquidated...so yes ...wealth has to mean money... but I understand that's just how it is when talking economics...

And Yes... u do worry about what someone else is making... that's business...

If I bought a key of coke from someone for 25k...
Ima be curious about how much he got it for...
I wanna find a way to get his price...

I might just be making some money...
He might be getting wealthy as the Plug.

I'm saying to you...
The banks are the plugs.
Ur making them wealthy and ur cool with just making some money, calling it "wealth".

You can buy a property outright and rent it...
Or invest that big ass down payment on urself with an idea, start a business... or play the market...
fukk it, buy some coke lol....
Theres more investment opportunities then sitting in a home for 10, 20yrs

Your in here acting like buying a house is the best way to make some money... "wealth"...
And if we not buying a house then we are dumb.
If ur renting then ur dumb...

Unless ur talking about actually acquiring real wealth from mortgaging a home...
Then u cant tell us people are stupid for renting...
Theres alotta ways to just make money

I’m not addressing most of this because quite honestly you’ve shown a poor understanding of wealth, assets, and this topic in general...assets mean a lot more than cash breh, you can leverage assets to do a lot and not have them converted to cash meanwhile stockpiling cash is a losing proposition due to inflation.

No where in this thread did I say owning property is the only way or best way to build wealth or invest, but homeownership is the biggest contributor to people’s wealth, that’s fact, and the wealth gap, that’s fact - please note, I didn’t say the only thing. Home ownership is also one of the most attainable ways, due in part to it meeting a present need - shelter, to build wealth and most easily understood, with relatively low risk.

Yes, owning a home is a smarter play in the long run than renting...the current gentrification going on across America is a prime example of what happens when you don’t own.

 

[JT-Money]

I wouldn't buy a home unless the market crashed again. Everything is overpriced and due for another huge correction. If the Democrats win the next election the economy is sure to take a dive. Mainly because they'll flood the country with cheap foreign labor. I would rather keep renting and just save money to wait out the next Recession.

 

[10bandz]

one of my best buddies got his first home and converted it for rental units. now his mortgage is covered and he makes 3k on top

Thats the way real nikkas do it. fukk what these other nikkas in here talking about. My parents and sister both got properties they've made money on and converted to rental units and I'mma do the same shyt

 

[Pimp]

Thats the way real nikkas do it. fukk what these other nikkas in here talking about. My parents and sister both got properties they've made money on and converted to rental units and I'mma do the same shyt

Lol.. Still get an apartment . Who wants to live with their tenants?

 

[10bandz]

Lol.. Still get an apartment . Who wants to live with their tenants?

nikkas who wanna make money. You can buy a du/tri/four plex live in one and get the tenants to pay your mortagage + extra. They dont even gotta know you're the owner, just have a family member or something collect the rents for you.

 

[Pimp]

nikkas who wanna make money. You can buy a du/tri/four plex live in one and get the tenants to pay your mortagage + extra. They dont even gotta know you're the owner, just have a family member or something collect the rents for you.

You're missing the whole point. You want your family to know how much dough you hold? Rent out the unit you would live in and that pays for your apartment.. You don't want your tenants looking at you living your good life off them . Only idiots stay in some crammed up unit.

 

[10bandz]

You're missing the whole point. You want your family to know how much dough you hold? Rent out the unit you would live in and that pays for your apartment.. You don't want your tenants looking at you living your good life off them . Only idiots stay in some crammed up unit.

Who said you're living the good life? It's just one property when you buy your first property you aren't rich yet..... by the time you have several properties you'll be able to buy one for yourself and wont have to live near your tenants. But go ahead and keep renting my nikka.

 

[Pimp]

Who said you're living the good life? It's just one property when you buy your first property you aren't rich yet..... by the time you have several properties you'll be able to buy one for yourself and wont have to live near your tenants. But go ahead and keep renting my nikka.

Broke nikka talk