My boomer relatives think the average young person can put down 30% down payment… they also don’t see a problem with buying homes for “store of value” rather too live in.

A few weeks ago I had a conversation with someone who was very anti-capitalism. The basic premise of anti-capitalists is the complaint that the rich are becoming ever richer. What they don't understand is that the reason the rich are becoming richer is because the money is broken.

@christophersalinas2328

Жыл бұрын

That’s what they fail to educate themselves in. While trying to educate others in Marxism or other isms

Legendary mind!

Primary reason to own a house: shelter?

I don't think 20 to 25 years ago Jeff was making $42,000/year as a lifeguard at the community pool.

@sdrjr3562

Жыл бұрын

1987 was 36 yrs ago my guy...Im also sure it was part time.

I wish there were more variety of cheerleaders. It's always the same people

More people buy houses to avoid rising rents from landlords and to raise families The Real Estate Investor Class is too full of itself

When the housing market is bottoming out, Bitcoin will be going higher and I will easily be able to buy a house with Bitcoin. Does take patience though😊

Disagree with this... I live in France, here most households own their house. The main reason we do this, is because it is BY FAR the best way to build wealth. Instead of paying rent every month, you pay your mortgage, and the monthly payment is broadly the same. Difference? In one case, you own a house after 25 years and don't pay anything after this ; in the other case, you don't own anything and pay rent all your life. This is possible thanks to financial leverage and banking, and has nothing to do with whether money is gold, Bitcoin or fiat.

@xkfmfmzmflel9917

Жыл бұрын

The part of his speech that is accurate is for Real Estate as an investment. For guys like BlackRock, yes, they buy it as a "productive store of value" (you can rent it). And indeed, there's no denying that valuations are a bit high versus long term average (stocks as well). A "Bitcoin standard" could make it go down a bit, maybe -15%, but not "collapse". Even taking a -15% into account, it still makes sense for a household to buy a house and live in it, instead of renting all your life.

@wormbo2

Жыл бұрын

Stop paying your taxes, see how much of that household you "own" after 3 months not paying your fealty to the government machine...

bitcoin can crash from 60k to 16k in a short time but sure lets keep talking about house prices measured in bitcoin

@KYFHOme

Жыл бұрын

Bitcoin's price is volatile and should be evaluated by looking at multi year moving averages when compared with house prices.

@ExpensivePizza

Жыл бұрын

Housing prices are crashing too. The housing market crashes a lot less and slower than Bitcoin for a few reasons. Some of those reasons include... the housing market is a lot larger, less liquid and generally the last thing people want to sell. But the underlying reason for the crash is the same... The government raised interest rates to reduce inflation by killing demand. The full effects of raising interest rates takes a long time to flow through the economy. It will really kick in when people need to refinance their homes. For the same reasons that Bitcoin crashes faster it also tends to go up faster. You can't expect prices to go up really fast without them going down really fast because price volatility is a function of market liquidity. In other words, volatility happens in both directions. People tend to sell their most liquid assets first when they need the cash or expect future valuations to change. To be clear, I'm not saying anything about what you should invest your money in. Bitcoin and houses have historically both been good investments over a long enough time frame. But they are very different assets and taking the time to understand them both is worth it.

@laurilemmle8804

Жыл бұрын

You really are missing the whole point, lol 😅

probably a fad