The whole homeownership as wealth building never made sense to me. I mean I don’t pay rent, sure, there’s less of a leech thing going on so maybe I get get more money. But how is it an investment? It’s not like my singular house rises in price and everyone else’s doesn’t. Great, my house is now, in the twilight years of my life, worth 900% more than what I bought it for. I can now sell it, have 900% profit, then immediatly spend all that 900% profit on buying some other dwelling that also rose 900% in price
If I inherited 1,000,000 dollars cash, let’s say after taxes and assuming I didn’t inherit the money through a trust or some other tax evasion scheme, in 2010, that purchasing power today is worth roughly 70%. A million dollar house would be worth significantly more over time just from rising property values, and in addition, really the major component, is that there are inheritance laws that favor passing on property as a way of creating generational wealth.
It’s sold as wealth building in the same way they sell the idea of investing. “You too can become petty capitalists.” But I think you’re absolutely right. And like in the case of my parents, they were priced out of their house from rising taxes before having the ability to transfer that wealth to their kids
The whole homeownership as wealth building never made sense to me. I mean I don’t pay rent, sure, there’s less of a leech thing going on so maybe I get get more money. But how is it an investment? It’s not like my singular house rises in price and everyone else’s doesn’t. Great, my house is now, in the twilight years of my life, worth 900% more than what I bought it for. I can now sell it, have 900% profit, then immediatly spend all that 900% profit on buying some other dwelling that also rose 900% in price
Inheritance.
If I inherited 1,000,000 dollars cash, let’s say after taxes and assuming I didn’t inherit the money through a trust or some other tax evasion scheme, in 2010, that purchasing power today is worth roughly 70%. A million dollar house would be worth significantly more over time just from rising property values, and in addition, really the major component, is that there are inheritance laws that favor passing on property as a way of creating generational wealth.
Yeah but home ownership is sold as wealth building to the home owners isn’t it? I can’t spend money while I’m dead
It’s sold as wealth building in the same way they sell the idea of investing. “You too can become petty capitalists.” But I think you’re absolutely right. And like in the case of my parents, they were priced out of their house from rising taxes before having the ability to transfer that wealth to their kids