I don’t think I understood IRR even when I took FM.
Certainly don’t ask me about it now.
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I get the general idea but in terms of the actual calculation…
I would need to find my BA II plus
Then buy a coaching actuaries subscription
Nice plug. You’re the owner of coaching actuaries aren’t you (AND BA II plus)
Probably of FM too now that I think about it.
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Don’t forget to charge your phone.
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I’ve been using the same iPhone SE for about 3 years now. The battery health is hanging on for dear life. It might be time for a new one
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Lol, talk about shitty investments. Should be a samsung FE and you would have another year or two of good time left with it.
All this talk about real estate vs. S&P 500
Just buy GME guys. And BTC.
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And NVDA
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I looked around at a few vacation areas just to see what prices look like. 500k for <1000sf in the middle of nowhere. Insane.
I’m assuming there is a short term rental floor on a lot of places. Rent out 2 bedroom for 3k a week for 12 weeks over the summer. 36k covers the mortgage payment on a 500k house. Yes, i simplified a lot of the math on that.
Gotta think those are not sustainable prices. I know everything was booked up in 20&21 nearly 12 months out, but the same places this year still had open weeks back in January. This observation is based on places listed at what was reasonable back in 2019.
I’m guessing there is a housing bubble in all that in some markets as the math starts to break down. Its also generally a bad time buy luxuries during long bull market runs.
This a vacation home for skiing?
no
I also have the SE as my work phone. why? that’s what they gave me. it’s fine. it brings me the email, texts, calls (rare), and I take shitty photos that I don’t really look back at. I use my personal phone (which I call “the burner” at the office) the same way. it’s a low end samsung. i hate paying for a lot of things - pretty much everything but food and drink and maybe travel - but phones give me little joy beyond the basics
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Ask the Compound- rent or buy? (youtube.com)
Nick Maggiulli weighed in today, mostly taking the side of buying. I think that it’s worth noting that his investment assumptiions are on the conservative side and the home buying scenario needs a pretty long ownership cycle to pay off.
In the US, buying is much more rewarding. We’re one of the only countries on earth that offer 30yr fixed rate mortgages, that hedges bigly against high inflation.
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But are you better off?
Better off than our Canadian counterparts, that’s all that matters!
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It’s causing big problems for the generation just starting to buy. Those with pre-2021 mortgages are much more reluctant to sell than in the past, so inventory is low. Current new home buyers will also be unlikely to get such low interest rates in the next couple of decades. It favors one generation over another.
Hugely variant based on what you’re doing.
Where I live adding a swimming pool is a negative. That is to say, spend $50,000 adding an inground pool to your house? It is now worth $20,000 less than it was before you added the pool, making the total cost $70,000.
But if you spend $3,000 painting the interior that could easily add $10,000 of value. The time and hassle it takes to do the painting might not be worth $7,000 to you though.
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Are they counting anything for the value of living in the house? That you’d have to pay rent if you didn’t own a house?