(11-11-2020, 11:01 AM)Apoc Wrote: It's not untrue you can build wealth with property, but too many people get caught up in TAH RENTAL INCUMZ ideal. You know how you get to a satisfactory income/savings level in your 20s? Move at the drop of a hat for any job that piques your interest in a high growth company.
Also the house you want to live in is probably not the house you want to generate rental income and vice versa, and you dont necessarily have to live where you own thats what property management is for - but - that said - in your 20's funneling some money into index funds and forgetting about it goes a long way and I wish I'd done that.
Think of it this way, if your goal is to build wealth - if you have the $$ to purchase a $550k house, best case scenario of 3.5% down (FHA loan) plus closing costs and other misc expenses you're gonna need $40k up front. If you put $40k into an index fund, presuming an 8% return, you'll have $400k in 30 years by doing nothing, and if you have a conservative 6% plus 3% employer match into a 401k, you'll have somewhere between $1.5-2M depending on how your salary tracks over time and you can fuck off your desk job whenever you want after that. Again, doing nothing. Now that ties you up a little bit if you want to buy a home later since you need that chunk of $$ but you can save as your salary goes up.
Food for thought. If I didnt already own a house I wouldnt be looking right now, the market is full on batshit crazy, and the thought crossed my mind to cash out and move out of this place after seeing what my neighbors house just sold for.