You're viewing a single thread.
They don't have any debt? I'm still 5 or 6 years from $0 if I don't get sick or have to replace a car.
I’m at least 30 years from $0 lol.
It’s funny how my net worth was higher when I was renting than it is now that I’m a homeowner that bought 18 months ago.
Yeah but now you have a concrete asset on which you're gaining equity.
Before you were getting nothing for all that money you spent on rent. Now you're getting equity for it.
I know this will likely change as time goes on, but so far I’ve lost value and I’m under water by about 10% according to what I can suss out of the market value. And, my mortgage is 2.5x what I could be paying in rent most anywhere else in the region, which is its own stressor yannow. Everything is just a bit wonky right now.
I have no debts, 10k in savings, and I live in a van 🙃
You have a higher net worth than most millionaires!
Another great episode of Why Next Worth is a Terrible Indicator of Wealth!
If you aren't joking then unironically congrats on your relative financial success!
Are you not counting your house as an asset when calculating net worth?
I’m underwater right now since interest rates jumped right after I bought. So no.
You went with a variable rate? Are you insane? At least rates will drop in the next 3 years.
Nooooo. I’m locked in.
It’s that interest rates went up and prices fell as a result. My area just leveled off and hasn’t grown since I bought.
Why would you expect that to take 30 years to get back to $0 though?
Net worth literally means assets minus liabilities.
If you have a mortgage that isn't at least 50% paid off you probably have a negative net worth, while a renter without other debts will have a positive worth.
The accumulation of equity compared to the complete loss of value to renting is a different discussion, since they mentioned they just purchased and are only 18 months into their payments.
This discrepancy, btw, is why people accuse Trump of being a fake billionaire, because his liabilities supposedly exceed his assets, thus his begging for cash from the gullibles.
TF you talking about? You use the whole price of the asset for net worth. If your mortgage is $1 less than what you would get from selling it that's +$1 to your net worth.
If your house sells for 500k after expenses and you owe 300k you don't just get the 200k and still owe 300k. The lein holder gets their 300k and you get 200k.
My house is worth ~1.8mm and I owe ~140k, that's +1.66mm to my net worth. Even if I owed 1mm, I'd have +800k.
Unless the house is worth less than you owe, having a house with a mortgage isn't a negative to your net worth.
They have a new mortgage. They haven't built up equity yet, plus who knows what their damage is on other loans.
Their asset (the home) atm is still roughly equal to their liability (the mortgage).
I'm sure they'll be out of a negative net worth before they think but we also don't know what their damage is on interest rates, student loans, car loans, medical debt, etc.
I wasn't taking about that guy, he said he's underwater.
I was responding to your bullshit about needing to pay off 50%+ for your home to be a positive to your net worth.
"New mortgage" doesn't matter, as soon as you make the down payment, before you make a single mortgage payment, as long as the house hasn't decreased in value you have equity and that adds to your net worth.
As long as you can sell and have $1 left over after leins and expenses, it adds to your net worth. It's the value of the home less any leins, not your equity less any leins when determining what it means to your net worth.
Feel free to day one flip a new house for a profit after those expenses you're handwaving, I'm sure it's easy to do.
In the meantime, most homeowners will be breaking even on the investment, aka growing their worth, years or decades into ownership, assuming a stable market.
Much slower now than it was just a couple years ago, I hope they got a fixed rate.
Bro, you need to take the L here.
I'll ignore you obviously having no idea what net worth means and trying to move the goalposts from your dip shit 50% comment again and just say this:
Even in a buyer's market where the seller pays their realtor fees, the buyer's realtor fees, and closing costs, you're talking 7-8% tops, and I'm being generous here. If your home hasn't decreased in value and it takes you decades, or even just years, to have 7-8% in equity, you are a class-A fuckup.
Ok buddy.
Hey, smart idea, since homes are guaranteed investments right now, you should just start buying up properties.
I mean, if Blackstone can do it, why not you?
No need to even rent them out!
They just build equity for free!
Are you mentally impaired? Like diagnosed? I don't want to make fun of you if you are, that would be mean.
Stop putting words in my mouth and stop moving the goalposts.
You said you have to pay 50% of your mortgage before a house adds to your net worth. That isn't just wrong, it's dumb as fuck.
You said it takes years or decades to be able to break even selling a house. That's not just wrong, it's dumb as fuck.
Whether or not is a smart idea for a particular person to buy a particular house or if it's a good idea to invest in real estate vs something else are different discussions. I would bet it's a bad idea for you because you seem unable to grasp even the most basic concepts.
But if you want to pretend you're arguing with someone who says buy a bunch of houses and leave them empty to make money and ignore all the braindead shit you said so you can tell yourself you're right, go for it. I hope that attitude takes you far in life.
🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🦅🦅🦅🦅