They have a new mortgage. They haven’t built up equity yet, plus who knows what their damage is on other loans.
Their asset (the home) atm is still roughly equal to their liability (the mortgage).
I’m sure they’ll be out of a negative net worth before they think but we also don’t know what their damage is on interest rates, student loans, car loans, medical debt, etc.
I wasn’t taking about that guy, he said he’s underwater.
I was responding to your bullshit about needing to pay off 50%+ for your home to be a positive to your net worth.
“New mortgage” doesn’t matter, as soon as you make the down payment, before you make a single mortgage payment, as long as the house hasn’t decreased in value you have equity and that adds to your net worth.
As long as you can sell and have $1 left over after leins and expenses, it adds to your net worth. It’s the value of the home less any leins, not your equity less any leins when determining what it means to your net worth.
Feel free to day one flip a new house for a profit after those expenses you’re handwaving, I’m sure it’s easy to do.
In the meantime, most homeowners will be breaking even on the investment, aka growing their worth, years or decades into ownership, assuming a stable market.
Much slower now than it was just a couple years ago, I hope they got a fixed rate.
I’ll ignore you obviously having no idea what net worth means and trying to move the goalposts from your dip shit 50% comment again and just say this:
Even in a buyer’s market where the seller pays their realtor fees, the buyer’s realtor fees, and closing costs, you’re talking 7-8% tops, and I’m being generous here. If your home hasn’t decreased in value and it takes you decades, or even just years, to have 7-8% in equity, you are a class-A fuckup.
Are you mentally impaired? Like diagnosed? I don’t want to make fun of you if you are, that would be mean.
Stop putting words in my mouth and stop moving the goalposts.
You said you have to pay 50% of your mortgage before a house adds to your net worth. That isn’t just wrong, it’s dumb as fuck.
You said it takes years or decades to be able to break even selling a house. That’s not just wrong, it’s dumb as fuck.
Whether or not is a smart idea for a particular person to buy a particular house or if it’s a good idea to invest in real estate vs something else are different discussions. I would bet it’s a bad idea for you because you seem unable to grasp even the most basic concepts.
But if you want to pretend you’re arguing with someone who says buy a bunch of houses and leave them empty to make money and ignore all the braindead shit you said so you can tell yourself you’re right, go for it. I hope that attitude takes you far in life.
They have a new mortgage. They haven’t built up equity yet, plus who knows what their damage is on other loans.
Their asset (the home) atm is still roughly equal to their liability (the mortgage).
I’m sure they’ll be out of a negative net worth before they think but we also don’t know what their damage is on interest rates, student loans, car loans, medical debt, etc.
I wasn’t taking about that guy, he said he’s underwater.
I was responding to your bullshit about needing to pay off 50%+ for your home to be a positive to your net worth.
“New mortgage” doesn’t matter, as soon as you make the down payment, before you make a single mortgage payment, as long as the house hasn’t decreased in value you have equity and that adds to your net worth.
As long as you can sell and have $1 left over after leins and expenses, it adds to your net worth. It’s the value of the home less any leins, not your equity less any leins when determining what it means to your net worth.
Feel free to day one flip a new house for a profit after those expenses you’re handwaving, I’m sure it’s easy to do.
In the meantime, most homeowners will be breaking even on the investment, aka growing their worth, years or decades into ownership, assuming a stable market.
Much slower now than it was just a couple years ago, I hope they got a fixed rate.
Bro, you need to take the L here.
I’ll ignore you obviously having no idea what net worth means and trying to move the goalposts from your dip shit 50% comment again and just say this:
Even in a buyer’s market where the seller pays their realtor fees, the buyer’s realtor fees, and closing costs, you’re talking 7-8% tops, and I’m being generous here. If your home hasn’t decreased in value and it takes you decades, or even just years, to have 7-8% in equity, you are a class-A fuckup.
Ok buddy.
Hey, smart idea, since homes are guaranteed investments right now, you should just start buying up properties.
I mean, if Blackstone can do it, why not you?
No need to even rent them out!
They just build equity for free!
Are you mentally impaired? Like diagnosed? I don’t want to make fun of you if you are, that would be mean.
Stop putting words in my mouth and stop moving the goalposts.
You said you have to pay 50% of your mortgage before a house adds to your net worth. That isn’t just wrong, it’s dumb as fuck.
You said it takes years or decades to be able to break even selling a house. That’s not just wrong, it’s dumb as fuck.
Whether or not is a smart idea for a particular person to buy a particular house or if it’s a good idea to invest in real estate vs something else are different discussions. I would bet it’s a bad idea for you because you seem unable to grasp even the most basic concepts.
But if you want to pretend you’re arguing with someone who says buy a bunch of houses and leave them empty to make money and ignore all the braindead shit you said so you can tell yourself you’re right, go for it. I hope that attitude takes you far in life.