A reminder that your home is not an investment because “housing always goes up”

Is that accurate though? Can't you do the exact same thing to the S&P (take a one year slice and show how it went down in one given year)? What do the historical (eg: over 10 year period) trends look like?

Right so what I am pointing out is not that investments shouldn't go down, but that the trope that real estate is more secure than stock because it never goes down is not true.

But a house will never go down to zero (al pi derech hateveh, not including locations like sodom)

neither will a total stock market index fund

There are tradeoffs though. It's more risky but has the potential to do a lot better than the stock market. It also has the benefit of using leverage.

i have leverage on my stocks and its much easier to access than a HELOC

In the great depression, did housing depreciate as much as the market? I simply dont know, but guessing not cuz people still need a roof even if the whole econony tanks.

great depression housing in manhattan went down 67%

can you in fact leverage your stocks like you would a house? like 20/80?

Hmm...but thats area is tied to maket success, no? What about lakewood? 😀

It doesn't prove any point regardless, my point is just that its not true the housing always goes up. It needs to be thought of as an asset, but not an investment

Or "piece of mind"

piece of mind is a luxury, still not an investment, but yes

What location is this home in, what kind of home is this?

This is my home in Baltimore.

and you believe this number?

Yeah a year ago things were so scarce the prices were stupid high, 527k is more realistics, prices came down a bit to calm down

wow, I am shocked, never seen this before in frum areas

yeah i doubt its as drastic as the graph shows, but the frum area was really tight then, now things seem to be back to normal

ah ok

yeah it was just a bit of a spike last year

I'm not surprised at all. I see many price cuts here in Lakewood or the surrounding towns , due to homeowners looking to sell their houses at the same prices their neighbors got at the height of the Covid craze

@white-electrician-18051 please share? I see people getting insane price increases even when they bought in 2024, forget about those who bought in covid, they are demanding +50%. Would love to see any central jersey deals like that?

can you in fact leverage your stocks like you would a house? like 20/80?

how do you leverage your house?

@gorgeous-author-37828 in areas that have already become completely saturated (i.e they became the new boro park), yes they command high prices , everywhere else houses are sitting and prices are being cut. Look on Zillow

I have looked and even the outskirts of jackson and howell I see huge huge premiums, care to share some examples? genuinely curious

@gorgeous-author-37828 sorry for the delay. I don't think we are disagreeing. Houses are definitely way more expensive than they were and that will never change. Inflation is real and is one way, plus supply and demand dynamics have changed irrevocably. That said.... There's a huge difference between the bidding wars going on during covid or houses were going for $200,000 over ask. 40 to 50 bids per house , to what you see now. I see many houses where unless they're in an extremely sought after area they don't fetch the original ask. In areas that were lucky enough to become extremely saturated through the covid boon that they can now fetch significant premium, although the consumer base is much smaller cuz you can afford that at the current mortgage rates

I don't now the exact way but you could borrow against stocks, that is how the billionaire live

I regularly borrow against stocks. No big chochma to it.

So what does a heloc have over stocks when borrowing?

I can only think of negatives