/biz/ - Business & Finance

>>57689931
This is true in a longer timeframe but is essentially moot when the gap between market rent and mortgage is this wide. If you bought the peak of '82, rent didn't catch up until ~2000. If you bought in '07, rent didn't catch up until '20. And looking at this chart, I can't even imagine how long it will take for rent to hit peak mortgage bubble payments unless something wild happens to the rental market. Rent has a steady upwards trend so when is it going to hit $2800?

And this is a separate argument from "housing as investment." You are addressing the practical concern of monthly payments and it makes sense. And others in this thread have the idea of paying off the mortgage as quickly as possible to remove payments altogether. There are certainly different strategies. I specifically think treating a house as an investment is dubious.

>>57690003
So I put $700,000+ (principal, interest, taxes, repairs, improvements) into a $300,000 house over 30 years, then sell it for $700,000 and buy a smaller house for $300,000, then live off of the $400,000 profit, leaving my children a $300,000 small house which they will just sell because they are on the "property ladder" themselves by the time of my death. And this is all contingent on market prices continuing to increase exponentially with no crashes at the key moments when I need to sell.

>>57549127
>>57549181

youre wrong, theres about to be a glut of new homes on the market combined with air BnB investments folding over because people are underwater on the mortgage when the stock market drops 30% this fall.

there are towns that put restrictions on air BnB and the home prices dropped 200% faster than the rest of the market

theres a huge amount of boomers who just bought houses at All time highs, just to use them as rentals and air BnB. This chart is going to correct