It also ignores the fact that when you own one property, (an unethical person) could use it as the collateral for future investments. It also ignores the fact that you can pass a home onto your children. Also, if you own a house you can have animals and guests as much as you want. Also, the money isn't flushed away in a mortgage situation; each month you are gaining (a small amount, admittedly) of equity.
If Person A bought a house in Echo Park in 2006, or in Westwood in 2000, they'd see like a 5-10x return on their investment. I guess Person B could have randomly purchased amazon or apple stocks but with gentrification going on, real estate seems to have a good return
Let’s say you bought a home, struck gold, and now it’s worth more. How does this benefit you?
You house appreciated from 200,000 to 400,000. Rents in the area have gone up from $400/month to $800 month. Since you purhcased at $200,000, you can charge a tenant $800 and that's some nice profit. Also when you own a home, a landlord can't fucking kick you out.
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It also ignores the fact that when you own one property, (an unethical person) could use it as the collateral for future investments. It also ignores the fact that you can pass a home onto your children. Also, if you own a house you can have animals and guests as much as you want. Also, the money isn't flushed away in a mortgage situation; each month you are gaining (a small amount, admittedly) of equity.
If Person A bought a house in Echo Park in 2006, or in Westwood in 2000, they'd see like a 5-10x return on their investment. I guess Person B could have randomly purchased amazon or apple stocks but with gentrification going on, real estate seems to have a good return
You house appreciated from 200,000 to 400,000. Rents in the area have gone up from $400/month to $800 month. Since you purhcased at $200,000, you can charge a tenant $800 and that's some nice profit. Also when you own a home, a landlord can't fucking kick you out.
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