Ponderable

P o

I know man, the bank really got me.
Want to buy my house?
It’s about $4m but wait I owe the bank over 500K of that because they loaned me money when I bought it for 880K. ! I’ve been using their money for 20 years at less than 5% while my money has grown by well over 5%. And they get none of the rise in asset value.
And I have lived in this expensive house for 20 years...think how much it would have cost to rent!
Yeah the bank took such advantage of me. I got in the house for less than 200K to start.
2 Corinthians 11:30
If I must boast, I will boast of the things that show my weakness.
 
You should re-read my post and buy that house in San Pedro. Trust me, young’un...you won’t make more money doing anything else you do. And I don’t know how much you currently pays for rent, but if you live in it, your “income” is the savings on rent that you would be paying elsewhere. Ya see how that works? And of course the interest that you’re paying is deductible, another huge benefit to purchasing real estate vs other forms of assets.
Whether you rent or pay a mortgage, neither generates the income required of a real asset. Even with your deductions. Your simulated rental might.
 
Whether you rent or pay a mortgage, neither generates the income required of a real asset. Even with your deductions. Your simulated rental might.

You can make up another word for this huge asset, sounds like you insist on it. And the sky is yellow.
Few things bring wealth like buying real estate.
And I don’t know what you mean by “simulated rental.” Didn’t I tell you earlier you need to keep it simple? If you are living in a place, you are either paying rent or paying off a mortgage. So in doing all your overwrought math, you should count your rent savings as income, because you’re living in the house and not paying rent somewhere else.
 
You can make up another word for this huge asset, sounds like you insist on it. And the sky is yellow.
Few things bring wealth like buying real estate.
And I don’t know what you mean by “simulated rental.” Didn’t I tell you earlier you need to keep it simple? If you are living in a place, you are either paying rent or paying off a mortgage. So in doing all your overwrought math, you should count your rent savings as income, because you’re living in the house and not paying rent somewhere else.
Rent and Mortgages cashflow away from the occupants to either the bank or the rental owner and then to the bank. That's why you have no net income from the home that you live in. Few things do bring wealth like real estate. Especially when that real estate is generating income. Your home is not doing that.
 
Rent and Mortgages cashflow away from the occupants to either the bank or the rental owner and then to the bank. That's why you have no net income from the home that you live in. Few things do bring wealth like real estate. Especially when that real estate is generating income. Your home is not doing that.
I gave you one example. I have more.
In 2012 I bought a house for 969. In 2016 I sold that house, without any improvements, for 1.7.
My first house, in 1987, was $211K in the Hollywood Hills. I lived in it without improvements and sold it in 1991 for $335K.
Do the 3rd grade math and explain which investments you have made that beat those.
You can also use my existing primary residence, the stats on which I have given you 3 separate times.
Get in the market, son. Own a home.
Why are you paying your landlord’s mortgage instead of your own?
 
I gave you one example. I have more.
In 2012 I bought a house for 969. In 2016 I sold that house, without any improvements, for 1.7.
My first house, in 1987, was $211K in the Hollywood Hills. I lived in it without improvements and sold it in 1991 for $335K.
Do the 3rd grade math and explain which investments you have made that beat those.
You can also use my existing primary residence, the stats on which I have given you 3 separate times.
Get in the market, son. Own a home.
Why are you paying your landlord’s mortgage instead of your own?
A-ha moment! If you were the land lord in all three examples you now have net income, thanks to your renter, and thus an asset. My work here is done.
 
A-ha moment! If you were the land lord in all three examples you now have net income, thanks to your renter, and thus an asset. My work here is done.
You’re looking at the wrong side of things.
Unless you live in a shelter or with your parents, you’re either the tenant or the owner. Don’t be a sucker, be the owner.
I’m always the owner. My rent goes to me! Then I sell for a big profit.
I don’t think it sinks in with you.
 
You’re looking at the wrong side of things.
Unless you live in a shelter or with your parents, you’re either the tenant or the owner. Don’t be a sucker, be the owner.
I’m always the owner. My rent goes to me! Then I sell for a big profit.
I don’t think it sinks in with you.
Profit yes, asset no.
 
Profit yes, asset no.

We established yesterday, very clearly, that the property you own and live in is listed as an “asset” on your financial statement. Even if it has a mortgage!
You may have an opinion about that, which you have expressed, but I can have an opinion that I don’t have to pay taxes to the feds. Doesn’t change the facts.
Today my point is different. And it is subject to opinion, unlike yesterday’s point.
You should buy a house, if you can afford it. Best personal financial move you can ever make, if you buy the right location. My suggestion would be San Pedro right now. Camarillo is a bit out of reach now but that would be good too. I think East LA/Boyle Heights will grow nicely over the next 5 years as well. These are just guesses, though.
Or you can keep paying rent and help your landlord pay his mortgage while you own nothing.
But maybe you move with your parents...in which case that might work for you!
 
We established yesterday, very clearly, that the property you own and live in is listed as an “asset” on your financial statement. Even if it has a mortgage!
No WE didn't. The Home that you live in doesn't even make it on to the balance sheet. It remains on your income statement as an "expense". That's why you have a mortgage. Your rental moves from the income statement as an expense to the balance sheet because it is an asset that produces net income after it pays off the monthly liability.
 
You may have an opinion about that, which you have expressed, but I can have an opinion that I don’t have to pay taxes to the feds. Doesn’t change the facts.
I don't have an opinion about cash flowing to the bank every month instead of you. It is a fact. You can have that opinion every month as long as you pay your mortgage every month. Supposedly that is how you buy equity. It's not free is it?
 
Or you can keep paying rent and help your landlord pay his mortgage while you own nothing.
Or you could pay the bank 60% interest a month after you bought 20% equity to avoid PMI. Deductions are a subsidy to the housing market and only artificially drive up the cost of homes so that your 20% purchase of equity is higher. In other words it's a wash.
 
No WE didn't. The Home that you live in doesn't even make it on to the balance sheet. It remains on your income statement as an "expense". That's why you have a mortgage. Your rental moves from the income statement as an expense to the balance sheet because it is an asset that produces net income after it pays off the monthly liability.
"No WE didn't."
images
 
Or you could pay the bank 60% interest a month after you bought 20% equity to avoid PMI. Deductions are a subsidy to the housing market and only artificially drive up the cost of homes so that your 20% purchase of equity is higher.
/QUOTE]

Say hi to your mom and dad for me
 
Or you could pay the bank 60% interest a month after you bought 20% equity to avoid PMI. Deductions are a subsidy to the housing market and only artificially drive up the cost of homes so that your 20% purchase of equity is higher. In other words it's a wash.
“KISS.” Keep it simple, stupid. Quit deciding ways to talk yourself out of the best financial move you will ever make.
 
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