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My house is worth more than at the peak of the bubble


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2013 May 7, 1:57am   2,171 views  4 comments

by toothfairy   ➕follow (0)   💰tip   ignore  

With those rent vs. buy calculators from a few years back I guess we should've been using 20% appreciation instead of 2%. but who knew?

#bubbles

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1   Hysteresis   2013 May 7, 2:32am  

20% appreciation for the next 30 years (over the lifetime of a mortgage)?

sounds about right.

2   AD   2013 May 7, 2:35am  

Hysteresis says

20% appreciation for the next 30 years (over the lifetime of a mortgage)?

sounds about right.

LOL Hysteresis. From what I've read that even with the volatility that home prices have gone up 5 to 7% a year. Is the 2% assumption considered the adjusted or return that factors out inflation ?

3   bmwman91   2013 May 7, 7:05am  

Hysteresis says

20% appreciation for the next 30 years (over the lifetime of a mortgage)?

sounds about right.

RE only goes up Up UP! I think that basing all future financial decisions on 20% annual appreciation is almost too conservative. Leaving money on the table. Make it 30%!

4   Dan8267   2013 May 7, 9:49am  

toothfairy says

With those rent vs. buy calculators from a few years back I guess we should've been using 20% appreciation instead of 2%. but who knew?

Feel free to buy based on that assumption. Buy lots and lots of shacks. Just don't come crying if you're the one holding the bad when the whole Ponzi scheme collapses.

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