so, after 19 years finally bought our first apartm...
# housing
p
so, after 19 years finally bought our first apartment, b"H, a few months ago now, we have some friends, that are better off financial (I don't just mean like living extravagantly, but blessed with the ability to give tons of tzedaka, and have shabbos meals with like 20 people every week...) they bought their apartment 5 years ago. They paid 400,000 shekels less, obviously have much smaller mortgage payments, and have a much bigger apartment. This thought keeps going through my mind, and, and deep down inside, I feel a little bit of resentment. I'm just coming here because I need to people to tell me that it's ok
I struggle with this as well, especially as it related to pre and post COVID prices. I don't resent anyone, but I struggle with "why not me too?" I deeply regret and spend a lot of time ruminating over the things I did not do that I could have done to be better off financially. I was listening to the "Living with Emunah" podcast and he mentioned something that's been helping me with these thoughts. Essentially, he said "don't look back in regret, or you will turn into salt like Lot's wife." I hope it at least helps to know you're not the only one struggling with this.
I bought a house post covid and have a similar struggle. I'm not a jealous person. It doesn't bother me that others have more money and have fancier things. But that I'm paying so much more on my mortgage for a smaller house really eats at me
I'm gonna follow the anonymous trend for some reason. 1st of all Mazel Tov! 2nd of all, that is really hard. I see that in my family as well, the sibling who paid 450 for his house 10 yrs ago, the one who paid 450, 4 yrs ago and the one who paid 750 this year. (Yes, the last 1 has the smallest from everyone.) Something to keep in mind, in 5 yrs from now anyone who bought after you will feel the same way. Hatzlacha!
Trust me, this deeply eats at me. I think about it every day. I feel guilt because I feel like I cheated my child out of a better future. There are a lot of days that I feel like this decision is what ensured I won't survive whatever economic crisis is coming. Your post helps me a lot, because sometimes it just helps to know you're not the only one thinking or feeling something. Good luck to us all, may we each find our success.
This is such a common feeling. I think it addresses a theme that runs throughout our lives. There are so many situations where we feel like if we'd done something different, we could have drastically improved our life trajectory. I try to remind myself that I do my best. I was working with a limited set of options, and based on the resources and information I had, I did my best. It may not seem like the best outcome, but it was the best based on what I was working with, based on the situation Hashem put me in. It's ok to feel upset about it. It's upsetting. But you did your best based on where you were.
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I think there's a uniquely Jewish trauma response aspect to this too. "I didn't foresee the future and make the right decisions so I won't survive the next pogrom"
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s
Interestingly, I met you friend this Shabbos and he was crying to me how jealous he is of your beautiful and well-brought up family
p
Curious, do you feel this is more prevelent in Israel, whereas in America if you want to spend less you have more options (that are more normal)?
We waited almost 10 years and have now given up on buying something big enough for us to live in. Trying to buy something small on paper to rent out, just to get on the property ladder. Yes we'd have made a huge profit buying a few years back, but we're focusing on just looking forward.
(this is in Yerushalayim)
So not looking back, but looking forward, would you advise others, even your children to push themselves to buy before they are financially "stable" in Israel, or to wait. I personally bought before, and had some hard months/years, even some missed mortgage payments, but looking back 20 years later, I would never have bought a house. About 5-7 years later rent (we rent out, and rent to live in) was more than the house mortgage, so the pain was only for a few short years looking back. To my kids I would tell them to push and buy right away, and just rent smaller until they could afford it, but this not what they preach on frum.finance. I just don't believe there is any other way in Israel, unless you make it big, or got really lucky with some investment.
Are we jealous when someone is 6"0 feet tall and we are only 5"6? Generally not. It is not the answer we want to hear but its a lack of emunah and understanding the grand master plan. There is a reason why you are looking at them but always remember there are also people looking at you longingly wishing they had what you do.....
m
I haven't yet seen a real estate market where it makes sense to buy earlier instead of renting and investing the difference, but if someone sees a real estate market they think is growing fast enough that the investment gains of the change in cost of living don't surpass it, please do share. Happy to run more simulations
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p
It's not a question on emuna, a question on what you would advise someone now in the situation. Real estate in Israel both rent and housing goes up quite fast, in a few years rent can easily go up more to what a monthly mortgage payment would cost. I have yet to hear anyone upset they pushed themselves to buy too early here. (And they can also buy something to rent out, much smaller, but to get your foot in as soon as you can).
m
Lol no one you know that bought a house is running simulations on how well off they would be had they not bought it. After people make incredibly large financial decisions like that, a healthy person doesn't dwell on what could have been. The argument is a straw man. I run real simulations with real numbers to help people decide. Not with survivorship bias, or an emotional blindness to how things could have been better had they been more strategic. It's not healthy to think that way and I wouldn't encourage it, but if someone is willing to do the work upfront to make an optimal decision, they certainly should.
t
when people are squeezing to make it, they are not investing the difference though. If the mortgage is due, they will try by hook or crook to find a way to make the payment. If the mortgage is not due, they are not by hook or crook figuring out a way to fund an investmen account. So I'm not sure that that analysis is taking human nature into account. This is the kind of thing that makes me unsure about the "defer purchasing a house until you can comfortably afford it" mindset
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m
Right but I'm not advising it to randos. I'm advising it for families where I have software tracking their investments and can check in with them for follow through
t
Not sure how that changes things?
m
If people aren't sticking to the plan then it's clear we will tell them to buy the house.
It's only if you are investing the difference.
t
even if the mortgage payment is really too high for what they can comfortably afford, with the hope that in a few years it will become more comfortable?
m
That would depend on their YNAB
t
i hear
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