If you don’t own a home now, what’s your plan? Rent forever? Move to the Midwest

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Mar 18, 2022
3:37:05pm

Odysseus Head Gamemaker

If you don’t own a home now, what’s your plan? Rent forever? Move to the Midwest

or where homes are more affordable? Save up and hope for a major housing crash?

It’s crazy to see how “smart” it was for people to lever up and buy the most expensive home possible over the past 5-10 years. So much of the financial advice I heard while growing up has been completely turned upside down.

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Odysseus

Previous username: THUNDERDOME69
Bio page: Odysseus
Joined: Oct 28, 2014
Last login: Jun 15, 2024
Total posts: 33,175 (11,641 FO)

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Messages

Author

Time

If you don’t own a home now, what’s your plan? Rent forever? Move to the Midwest

Odysseus

3/18/22 3:37pm

I am not sure that is good advice

2FarGone

3/18/22 3:38pm

In hindsight, the best decision was to put as little down on a home as you could

Odysseus

3/18/22 3:45pm

The power of leverage

3/18/22 3:45pm

There are still some decently affordable housing out there. You don't have to

LiveCoug

3/18/22 3:38pm

I mean I think about the Bay Area and how far that reaches with sleeper towns.

P-Boy Squad

3/18/22 3:48pm

Or even, gasp, considering NOT the Wasatch Front

LiveCoug

3/18/22 3:50pm

That is going to be the reality for a whole bunch of people going forward.

dilbert

3/18/22 3:58pm

I expect to see more people moving into the midwest

Gustav

3/18/22 3:39pm

No plan. Probably will have to move at some point.

JuicyJam

3/18/22 3:41pm

The south is also an option

3/18/22 3:45pm

We bought a 3800 sq ft mild fixer, flooring, paint landscaping for $375k Already

Nat Gas Man

3/19/22 1:06pm

My parents taught me growing up to do real estate and avoid the stock market. I

Chefcurry

3/18/22 3:46pm

Your parents were wrong. Just look at the historical performance of the market

Jdoc

3/18/22 4:08pm

Depends on how you invest and what you invest in. They’ve killed it in real

Chefcurry

3/18/22 4:16pm

True, but if you keep it in the market long term, and have a good mix of

Jdoc

3/18/22 4:19pm

I love stonks, but if RE is your thing it is probably best to stay in your lane

The Kavorka

3/18/22 4:43pm

I agree but comparing real estate to stocks is so different

johnnybyu

3/18/22 10:31pm

Is that just based on appreciation? Or are you factoring in cash flows that

Duke Silver

3/18/22 4:21pm

Good point.

Jdoc

3/18/22 4:26pm

But if you factor in RE leverage and rental income, not sure that holds

DC12

3/18/22 4:22pm

Not with leverage. For example, let’s say you have $10k to invest. If you put it

Odysseus

3/18/22 4:33pm

How often are you going to have a 20% return on real estate? Not often. You also

Jdoc

3/18/22 4:38pm

I prefer stonks because I’m lazy and RE is a headache

Odysseus

3/18/22 5:00pm

Buffet said real estate was the best investment 10 years ago but you have to be

johnnybyu

3/18/22 10:18pm

Except for a few hot markets, real estate returns have been around the same as

Mitty

3/18/22 9:49pm

They are comparing apples to oranges. Investing in real estate is so different

johnnybyu

3/18/22 10:20pm

Not even close. Yes if you look at straight return with no financing. But cash

johnnybyu

3/18/22 10:16pm

Diversification + long term investing + dollar cost averaging. You just need to

Big Daddy D

3/18/22 8:08pm

Max leverage was the best strategy.

Backcountry

3/18/22 4:11pm

<< Deleted >>

Raging Caddy

3/18/22 4:27pm

I’m sorry.

TCuz

3/18/22 4:32pm

RE: If you don’t own a home now, what’s your plan? Rent forever? Move to the Midwest

TEXAS

3/18/22 7:45pm

It has always been smart to lever up and buy as much as you can afford just as

Big Daddy D

3/18/22 8:02pm

Long term even buying in 2008 was really good as long as you could afford the

johnnybyu

3/18/22 10:24pm

Yes but we had a federal reserve very committed to and capable of funding

Big Daddy D

3/18/22 10:31pm

Fed was very helpful, but as they say real estate is very forgiving long term.

johnnybyu

3/18/22 10:36pm

Make big bank, buy a mansion anyway, and then buy a lambo

JollyGreenGiant

3/18/22 8:39pm

Rent forever unless I get married not sure I could afford a house on my own

ByuImaginesDragons

3/18/22 9:41pm

Stare into the abyss. Wallow in self pity. Yell at the sky.

Backcountry

3/19/22 7:18am

Buy a condo! Get that money working for you

BYU Grounds

3/19/22 3:09pm

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