If you’re getting a tax refund this month…
You didn’t “win.”
You gave the government an interest-free loan.
Here’s how high earners actually think about refunds👇
And you are the norm, not the exception. The narrative predicting falling rents is based on misunderstanding how rent data works. People expected rent depreciation because new-lease data was falling, but that data doesn’t represent the bulk of rents, which are sticky and driven by costs, so rents may increase less, but not go negative.
“Rents are tanking landlords are screwed”
Just filled a townhouse that became vacant 2 days ago.
New tenant moving in next week.
Didn’t even list it. Lease signed for $100 more per month.
Deep cleaned and painted closets. That’s all.
Take notes doomers.
Simple hack for those investing on mid or long time frames. Watch the MOVE index, fear and greed indexes, AAII investor sentiment survey, and 10 year US treasury yield. Buy when they suggest ppl are worrying, sell when they suggest the opposite.
@Thetruth1460891@DividendRob For the most part I agree, but I don't think someone in Japan in 1991 or Italy in 2009 would agree. And not everyone can buy and sell their primary residence at the right time, even if they can spot the trend. Buying real estate for investment of course is different.
@clearwealthflow@DividendRob If you buy it right it doesn't matter. We were above the lows in 2008 and it bounced back anyway. These are cycles and knowing when to buy and sell is key.
When a crash happens again we will buy another home and come up again.
Sure, that is the case for many people, especially since the housing market has done well in recent years. But that isn't always the case. If you went back to 2008-ish you'd find plenty of people in a very different situation.
And, this greatly depends on the country/state/city you live in and the property taxes and insurance there.
My point is that, despite what many people think, it isn't financially better to buy a home 100% of the time. Lately, for many people it has been, but not everywhere always.
And even despite the good market over recent years, when I have people go and actually do the calculations on what they actually spent over the years, compared to renting, many are surprised at the result.
@clearwealthflow@DividendRob Huh? You have equity. I bought 11 years ago and now have a lower payment than someone renting a one bedroom apartment. I also have 700k in equity.