Bitcoin is down 66% in 6 months. The latest run-up and crash was just like the last one. You've got guys like Fresh and Fit, Rich Cooper, etc telling everyone to buy it. FOMO all the way. Tales of instant riches galore. Stop listening to these people.
Nobody can afford a mortgage at today's prices and interest rates. A home where I live is $350,000. You'd need $70k for a down payment and your mortgage would be $1,659. If you wanted to rent it out you'd need to be charging in the neighborhood of $2k/mo. The average individual income of Americans for 2020 was $35,805 per year. Take away $24k/yr for rent and that's 67% of their income going to rent. These are just the numbers and they don't lie. So when a realtor tells you that tying up $70k for 30 yrs and getting a mortgage is a great investment, don't listen.
Meme stonks are all over the place. Tesla went from $1243 to $546 over the course of a year. Now it's at a 40% drop in 6 months. Apple is about to blow up the S&P 500 when they stop lying about their economic situation. Google and Facebook are about to be broken up by the gov't. The only thing that matters with stocks is market sentiment which is about to take a nose dive. Don't listen to retail investors. You could lose all your money. Use tried and true strategies that work.
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whytehorse2021 1y ago
Inflation is currently 8.5% so you'd lose 4.5%/yr on real estate just on inflation alone.
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whytehorse2021 1y ago
Oh but it gets worse... if you invested that 20% down payment elsewhere you'd have enough money to pay rent and have leftover money to re-invest.
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whytehorse2021 1y ago
I mean you can just hand the money to a broker and they'll do it for you(minus a commission).
Adeptintact1 1y ago
My mortgage is $5k a month but I make it work. Risk big to live big. That said, mortgage rates at 5.5% aren't worth it when they were below 3% a year ago.
mattyanon Admin 1y ago
20%? I doubt that.
Share a house. Buy a flat instead of a house.
Those numbers do lie because the average American on an average $35k/year is not buying a $350k house.
Noone knows if it's a good investment or not. Market could crash. Might not. Noone knows.
You are cherry picking your data points here: it's 40% down from a very short lived peak.
There is nothing that is guaranteed to work.
whytehorse2021 1y ago
Dude, the whole economy is down. I'm not cherry picking. Glad I sold all my stock at the highs. Glad I stuck with what I learned in my broker's online courses. Glad I'm not stuck in real estate.
pofkaf 1y ago
Tesla is up 900% from 5 years ago. Apple...240% Bitcoin...1500%
You're thinking too short-term. Investing is not about timing the market, its about staying in for a long period of time. Because in general, most assets increase over time. Despite the highs and lows.
whytehorse2021 1y ago
Yeah well that's a standard investment method, not some FOMO method.
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whytehorse2021 1y ago
Yeah, when you're getting real estate/crypto/stock tips from the janitor you know it's a bubble. It just blows my mind how strongly people get locked into these false beliefs. Maybe it's just another facet of blue pill conditioning.
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whytehorse2021 1y ago
It's just simple math. Interest rates directly control the prices of houses. Just watch as houses sit on the market for longer and longer, then the seller reduces the price, then the buyers see price reductions and hold off buying which just makes everything worse.
And that's just what you're seeing as a realtor. What I see is a screeching halt in money velocity. Real estate was barely keeping our heads above water and now we're going under water. Real estate loans create money. No more loans means no more money created, which means the money velocity equation tanks down towards zero. This means the fed got it totally wrong. The economy is not growing too fast, causing inflation. The economy is actually shrinking and real estate has propped it up.
liftheavystuff 1y ago
Sounds like someone's portfolio took a hit. Just like everyone elses! Stay the course brother!
whytehorse2021 1y ago
Nope. I have no real estate, crypto, or stocks. Inflation sure is eating at me though.
HopelessRomantic 1y ago
You know it's nice to hear someone like you give this type of advice. I know from a TRP forum it's rare to see these types of posts but I highly encourage them. My parents bought their house for 200k when they retired in florida, it's estimated at $750,000 now. It's just too good to be true I think.
whytehorse2021 1y ago
It is too good to be true. It's speculation gone wild. And then as soon as the market corrects, the gov't intervenes. We almost had a return to normal in 2008 but oh well. Did you know the pandemic is the third crash I've seen in my life? I was actually working as a programmer during the dot com crash of 2000. I was in the office of one of the major shareholders when he was telling me he lost $80k overnight on stocks. Poof!