Yeah it’s always wild when we get comments like this. It’s like interviewing a serial killer about the uncontrollable violence people feel over [insert their MO]
This is legitimately something I fantasize about. All I want is a small standalone structure to myself, nothing too big or fancy. I’m so damn sick of being held hostage by my neighbors ridiculously odd sleep schedule and lack of basic human decency.
Even though I’m single with a decent job, it’s never gonna happen. But I can dream. Well actually I can’t dream, because my neighbors don’t let me stay asleep long enough to reach a REM state.
Zillow hasn't bought homes in over a year after over leveraging by a few billion. Focus your attention where it's due, on all the institutionally funded SFR companies.
Buying it isn't profitable, holding large masses of it though, it's literally impossible to lose money, and if you do the government will do things like push employees back into overpriced office buildings to continue to justify the price.
Just holding isn't that valuable. Most real estate doesn't outpace inflation. If you get to live there for basically free or collect rent it's a good deal.
over the long term yeah, and I agree. the problem with a purchase is that you have to have the funds and it's a lot. no, not renting either - that's what I do now & of course and it's not the right answer though it's the only option for many. there are of course other options - rv/van life/car camping, moving elsewhere (ie: internationally/illegally), or even being a traveler (aka vanlife without a vehicle).
personally, I'm working on building my own RV. it's a lot cheaper than buying property, but I'll be the first to admit that there's still a sizeable upfront cost
If prices are going up, then it's going to be less than 13.5 years because the value of the house will grow on the meantime and you will own more than you owe
But then again, I would not be surprised if the rates fell in the future, so if your mortgage is a few years locked in rates and then goes floating this may be still fine
I'm talking more likely 7 years in the future, not like one or two, though
The question is, will prices continue to go up? Or will rates push prices down? What impact will that have on rents?
Hopefully all of that is included in this estimate. I expect housing prices to cool as rates go up, which means a longer time for the initial investment to pay back for itself.