@shawngorham How do you buy houses at 71% of market value? Are you suggesting the “market” in so cal is that bad at price discovery and is that inefficient?
You have to be 100% sure that your house will increase in value by AT LEAST 2.2x to break even on your investment, not even make profit
2.2x^(1/30y) = 2.6%/year
If it drops below 2.6% per year, you're already making a loss
Truthfully the avg house price increase in US is 4%, but that's quite a big assumption to make over the next 30 years
In the US at least the dominant mortgage is FIXED RATE that means the interest rate doesn't change
But in much of the rest of the world it's NOT, which means right now while interest rates go up, people's mortgage interest payments can double or triple
@ramit U rent a house, kids start school, parents/kids make awesome friends & feel part of a community, memories are made in house, owner decides to sell since it’s up $500K, U have to move to new area, rates are 6% v 3%, prices are up $500K, kids hate the new school, blah blah blah
@TheCompoundNews@awealthofcs@ramit@michaelbatnick Horrible take wow. So we teach a bunch of kids Algebra 2 because they love it? If we didn’t teach courses because kids generally don’t “like” then there would be no school. Have it be a required class for seniors and to be able to graduate.
@Budgetdog_ Great marketer to pay off so much debt and become a “millionaire” so quickly-Congrats! Brennan sells clicks, links, books, etc and other salesmen sell insurance products inappropriately. Others sell cutco knives. Gotta drop some crazy headline tweets to get the views! It works 👏🏻
@alignyourwealth@T_Gatzemeier@honest_math Isn’t this a spreadsheet? Maybe change 3-4 variables and repost the math. I’d actually lower the cap to 8% also just to be objective. Or just post the spreadsheet since this is all being done to help investors and advisors. Or not…😉
@alignyourwealth@honest_math@T_Gatzemeier Or just assume all investors pay 22% and will invest in 60/40 or even 100% equities - Then make blanket claims like most twitter “experts” that may or may not have done the actual work with real clients for 25 years. I guess it’s easier to do the math and act righteous on twtr