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Which will have higher net worth at age 65?
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Date: November 19th, 2017 4:07 PM Author: deep weed whacker Person 1: 80K house in flyover Mortgage: 0 to 40k 150k HHI Most income goes into index funds & crypto
Person 2: 1.1 mill condo in MFH Mortgage - 800k HOA: 3k/month 400K HHI Max out 401K but no savings beyond that
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Date: November 19th, 2017 4:08 PM Author: Poppy Haunted Graveyard lol obviously 1. why the fuck would the income matter if hes not saving anything. (http://www.autoadmit.com/thread.php?thread_id=3802639&forum_id=2#34724438) |
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Date: November 19th, 2017 4:09 PM Author: deep weed whacker He's putting more equity into his 1.1 MM condo
The reason why he's not saving is because of his mortgage + HOA fees
His condo will likely appreciate more than the 80k house in flyover |
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Date: November 19th, 2017 4:12 PM Author: Poppy Haunted Graveyard aint gonna cut it. dood is likely falling behind playing that game. (http://www.autoadmit.com/thread.php?thread_id=3802639&forum_id=2#34724453) |
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Date: November 19th, 2017 4:14 PM Author: fear-inspiring massive boiling water Equity is flame, bro. Once you subtract all the expenses associated with upkeep + property taxes, that bro in the 1.1mm condo probably won't end up actually netting more than $250k twenty years from now after selling the property.
You can't just look at the equity amount and say "ahhh he has $500k in equity!" Nah, you have to subtract all the expenses associated with owning that property. |
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Date: November 19th, 2017 4:15 PM Author: deep weed whacker Even in MFH? Crazy
I'm assuming the property will appreciate a bunch in value whereas the 80K house in flyover won't |
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Date: November 19th, 2017 4:16 PM Author: fear-inspiring massive boiling water Think about it:
-Maintenance fees -Property taxes -Mortgage interest -General expenses not covered by maintenance fees -Overall expenses associated with living in NYC
Once you add all that up, he's probably netting 250k or so in 20 years. |
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Date: November 19th, 2017 4:19 PM Author: deep weed whacker Fair point.
If we get boomer levels of appreciation, it might be OK...but I guess I doubt that will happen |
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Date: November 19th, 2017 4:20 PM Author: fear-inspiring massive boiling water The best thing anyone can do is simply buy a small home (instead of 1.1mm condos in Tribeca or whatever, buy a 2 bed 1 bath in Harlem for $350k) to live in and max out your tax-deferred stock portfolio. (http://www.autoadmit.com/thread.php?thread_id=3802639&forum_id=2#34724515) |
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Date: November 19th, 2017 4:31 PM Author: deep weed whacker Prob true
Fwiw, person 2 turned down a 250K job in Texas and free house to buy a place in MFH and make 400K in order to "make millions" off NYC real estate |
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Date: November 19th, 2017 4:35 PM Author: fear-inspiring massive boiling water Owner-occupied real estate is one of the worst investments anyone can make, imo. You're basically putting a ton of cash into a non-liquid asset that has a ton of expense attached to it, won't net you any kind of ROI until you actually sell the property, and that may not even appreciate in value much over a 10-20 yr period.
I think most people get so caught up with the idea of buying the biggest house possible to show off to friends/family instead of doing what will actually net them a much larger return. |
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Date: November 19th, 2017 5:18 PM Author: deep weed whacker True, boomers have done a lot to propagate this without hard evidence to back them up. Spreading lies like "real estate is always a good investment" and "education is always a good investment." (http://www.autoadmit.com/thread.php?thread_id=3802639&forum_id=2#34724949) |
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Date: November 19th, 2017 5:28 PM Author: fear-inspiring massive boiling water (http://www.autoadmit.com/thread.php?thread_id=3802639&forum_id=2#34725022) |
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Date: November 19th, 2017 4:11 PM Author: fear-inspiring massive boiling water Probably #1. (http://www.autoadmit.com/thread.php?thread_id=3802639&forum_id=2#34724447) |
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Date: November 19th, 2017 4:12 PM Author: Obsidian hot resort uhm how are we going to pay for the $6 trillion war in Iraq
only a few historically successful strategies for that
colonization (Puerto Rico ain't gonna due it) could do like Charles X when he owed the Dey of Algeria a bunch of money kill 1/3 of the inhabitants plunder. King Leopold of Belgium really did well there inflate the debt away austerity
the 401(k) presumes taxes will not be higher in 30 years |
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Date: November 19th, 2017 4:18 PM Author: Comical Bat Shit Crazy Public Bath twist: the MFH resident dies well before 65 from a stray MS13 bullet. (http://www.autoadmit.com/thread.php?thread_id=3802639&forum_id=2#34724492) |
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Date: November 19th, 2017 5:40 PM Author: Talented Athletic Conference WTF is the second person doing with the rest of their income? (http://www.autoadmit.com/thread.php?thread_id=3802639&forum_id=2#34725115) |
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Date: November 19th, 2017 5:41 PM Author: deep weed whacker 800k Mortgage + 3000 HOA fees, brother
Plus feed a family and SAHW in NYC
It makes sense if you look at the numbers |