Replying to Avatar El Guiri

My missus is all about real estate. Was pondering on morning dog walk what the implications are. It’s gone up fast over past 30 years due to mortgages just being a FIAT creation vehicle which always made me think that when people celebrate price rises in real estate, whether they consider the inflation it fuels elsewhere. If we hyperinflate and move to harder standard (hopefully bitcoin but some might be gold, who knows), dies real estate drop 60-80% to rediscover non fraudulent market price point? The denominator will change the outcome if it is being effectively counterfeited maybe?
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MattA 1y ago

My home has +2x in appraised $value in the past 9 years.

That’s great appreciation in value except my home is approximately as much a liability as it is an asset.

for instance:

*Interest on the mortgage

*PMI insurance (no longer needed)

*Homeowners insurance

*Property tax

* perpetual maintenance & repair costs

& if I sell my home at a glorious $$$ profit & I wish to live in the same area, I would have to move laterally unless I wanted to carry an even heavier personal liability, mortgage etc.

Meanwhile…

#Bitcoin has +10x in $price in the past 5yrs and my only caring cost is a $100 ColdCard and some mental fortitude.

🤔 🧐

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El Guiri 1y ago

Exactly. It’s a clear example of what Robert Kyosaki says about the fact that primary home should be in the liability column, not the asset column. I had a less demanding route. I saved and bought my first place with cash. Really small and in a part of Spain that wasn’t so expensive. It became popular and went up but at same rate as everywhere else. The appreciation seems to simply be trend, area popularity and denominator devaluation.

My wife wants to buy a new plot and build another house now. I told her straight. We leave this one, rent, sell and use those funds but I ain’t touching the bitcoin for this!

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DaddyJones 1y ago

I’m in the same boat bought house in 2022 property tax was $750 for the year home insurance was $1500 for the year in 2023 those tripled tax was now $2500 and insurance is $3500 now that 2024 my taxes are now $5500 and insurance $6200 this is completely unsustainable I put so much down on my mortgage to keep my payments below a certain amount but damn did not account for the rising insurance and taxes bunch of BS

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MattA 1y ago

for sure!

hardly an asset.

A home definitely squeezes you like a liability.

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El Guiri 1y ago

Remember, you will own nothing, and be happy