This is wrong to the point of being irresponsible.
A 5% down home (US avg is 6%) is levered 20-to-1 so a 1% annual appreciation (far lower than historical average) is a 20% annual return.
Mortgage pmt is a wash bc you’d otherwise make a (higher) rent pmt.
👇🧵
A 5% down home (US avg is 6%) is levered 20-to-1 so a 1% annual appreciation (far lower than historical average) is a 20% annual return.
Mortgage pmt is a wash bc you’d otherwise make a (higher) rent pmt.
👇🧵
https://twitter.com/thesamparr/status/1432111998406438914
There is simply no better risk-adjusted investment available to regular folks. The only exceptions are if you don’t plan to stay 5+ years or live in a dying city.
Here’s a more detailed thread:
Here’s a more detailed thread:
https://twitter.com/camp4/status/1339689320781758466
(Also, a home is no different than any other RE investment except cheaper leverage is available. So in effect that tweet is saying RE is a bad investment 🤣. Again, your home is unique in that it’s a payment you’d have to make anyway. Why pay someone else’s mortgage + profit?)
I rarely get angry but it infuriates me when people with large followings dispense terrible financial advice.
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