Real estate is not an investment (unpopular opinion)

[$Abomination]

Do we need shelter? Yes.
Does real estate appreciate in price? Yes.

These things dont mean it's an investment. And here's why, by my criteria at least:

1. It doesn't have a fixed supply.

Anyone can just build an identical house right next to yours. If you don't believe this disqualifies it from being an investment, then why why can't something like a gaming console be an investment? Because the supply goes out into oblivion. But a gaming console doesn't appreciate in price, so it's not even in the discussion. Investments must have a fixed supply that cannot be man made.

2. It doesn't have liquidity.

When you sell a home you have to find a buyer willing to pay the entire pricetag. No such thing need be in stocks, gold, or crypto. You just sell and get money. Why is this? Because the 3 aforementioned have a pool of fiat that trades against the dollar. The house does not. Every house is on its own.

3. The price of a house never actually goes up

It just increases because the value of the dollar decreases. $100k loses purchasing power to $70k. Now now the $100k house costs more. And the house usually doesn't even keep up with inflation. So it's a depreciating asset if you factor in inflation.

That being said money can be made with real estate and passive income can be earned but make no mistake, it's not an investment. It's a tool, a commodity, a necessity, but no investment. At least not by my definition of the word.

 

[aids]

Thanks for sharing this on a looksmaxxing forum where majority of people are too young to even buy property.

Houses are a capital asset, capital assets are used to generate revenue over 1+ year.
Investments are the purchase of a capital asset.
Therefore house = investment.
Maybe the real (adjusted for inflation) price of the house will not necessarily increase, that's obviously variable depending on so many factors, but most will. The reason they are (good) investments is what you can do with them whilst you own them.

It just increases because the value of the dollar decreases. $100k loses purchasing power to $70k. Now now the $100k house costs more. And the house usually doesn't even keep up with inflation. So it's a depreciating asset if you factor in inflation.

Land is the only non-current asset that does not suffer from depreciation so this is absolutely not true.

Making up your own criteria for what makes something an investment does not mean it's not an investment.

 

[$Abomination]

Thanks for sharing this on a looksmaxxing forum where majority of people are too young to even buy property.

Houses are a capital asset, capital assets are used to generate revenue over 1+ year.
Investments are the purchase of a capital asset.
Therefore house = investment.
Maybe the real (adjusted for inflation) price of the house will not necessarily increase, that's obviously variable depending on so many factors, but most will. The reason they are (good) investments is what you can do with them whilst you own them.


Land is the only non-current asset that does not suffer from depreciation so this is absolutely not true.

Making up your own criteria for what makes something an investment does not mean it's not an investment.

Land isn't a house. Age doesn't affect it. Houses are affected by age. Why would a house retain its value adjusted for inflation if it's 20, 30 years old? Think logically here for a second. Unless it's an antique or some shit.

I'm tryna understand the LOW IQ here criticizing me posting this on a "looksmaxxing" forum when they have moneymaxxing and investment section lmfao.

And I already said that was an unpopular opinion. I accept houses are an asset. And one that appreciates in value (when not adjusting for inflation). People can make any custom criteria they want for concepts pal. Investments require appreciation by money inflow via a liquidity pool, by my own custom criteria. If you don't agree that's your thing.

 

[aids]

Land isn't a house. Age doesn't affect it. Houses are affected by age. Why would a house retain its value adjusted for inflation if it's 20, 30 years old? Think logically here for a second. Unless it's an antique or some shit.

I am thinking logically. If you're going to buy a house, then you're obviously buying the land underneath it JFL.
Therefore remainder of your argument is invalid. And do not say that you're referring to the literal building itself and not the land because your initial post states this:

When you sell a home you have to find a buyer willing to pay the entire pricetag. No such thing need be in stocks, gold, or crypto. You just sell and get money. Why is this? Because the 3 aforementioned have a pool of fiat that trades against the dollar. The house does not. Every house is on its own.

I'm tryna understand the LOW IQ here criticizing me posting this on a "looksmaxxing" forum when they have moneymaxxing and investment section lmfao.

Think logically here for a second.

Do you think anybody is going to consider the advice of a looksmaxxing user when they are purchasing property? It is an extended purchase, not habitual. Much more planning would go into such a big decision and their decision would be inconsiderate of this post.
Moreover, majority of the people here right now are not even above 18, an even further majority not* able to afford a house, let alone looking to buy one.

And I already said that was an unpopular opinion. I accept houses are an asset. And one that appreciates in value (when not adjusting for inflation). People can make any custom criteria they want for concepts pal. Investments require appreciation by money inflow via a liquidity pool, by my own custom criteria. If you don't agree that's your thing.

If it is an asset then the purchase of it is an investment.
And no, if you are trying to determine whether something is an investment or not, the literal criteria for an investment should be used, as for most other concepts.. otherwise I could say that my criteria for whether or not I am black is if I say the n word often.

 

[thenewhebbe]

Do we need shelter? Yes.
Does real estate appreciate in price? Yes.

These things dont mean it's an investment. And here's why, by my criteria at least:

1. It doesn't have a fixed supply.

Anyone can just build an identical house right next to yours. If you don't believe this disqualifies it from being an investment, then why why can't something like a gaming console be an investment? Because the supply goes out into oblivion. But a gaming console doesn't appreciate in price, so it's not even in the discussion. Investments must have a fixed supply that cannot be man made.

Its very unlikly someone builds an identical house next to even if they do tjats not neccecerally bad thing..

A console genrally goes down in price but lego sets can be an investment because you can more of it.

2. It doesn't have liquidity.

When you sell a home you have to find a buyer willing to pay the entire pricetag. No such thing need be in stocks, gold, or crypto. You just sell and get money. Why is this? Because the 3 aforementioned have a pool of fiat that trades against the dollar. The house does not. Every house is on its own.

People always wanrs home and you can get a high amount from it . Crypto tjats extremely unstable ..

3. The price of a house never actually goes up

It just increases because the value of the dollar decreases. $100k loses purchasing power to $70k. Now now the $100k house costs more. And the house usually doesn't even keep up with inflation. So it's a depreciating asset if you factor in inflation.

That being said money can be made with real estate and passive income can be earned but make no mistake, it's not an investment. It's a tool, a commodity, a necessity, but no investment. At least not by my definition of the word.

You can fix up the house so the value changes. The area can start having less crime more nice resturants and school so the price increases

 

[SavageAstronaut]

Do we need shelter? Yes.
Does real estate appreciate in price? Yes.

These things dont mean it's an investment. And here's why, by my criteria at least:

1. It doesn't have a fixed supply.

Anyone can just build an identical house right next to yours. If you don't believe this disqualifies it from being an investment, then why why can't something like a gaming console be an investment? Because the supply goes out into oblivion. But a gaming console doesn't appreciate in price, so it's not even in the discussion. Investments must have a fixed supply that cannot be man made.

2. It doesn't have liquidity.

When you sell a home you have to find a buyer willing to pay the entire pricetag. No such thing need be in stocks, gold, or crypto. You just sell and get money. Why is this? Because the 3 aforementioned have a pool of fiat that trades against the dollar. The house does not. Every house is on its own.

3. The price of a house never actually goes up

It just increases because the value of the dollar decreases. $100k loses purchasing power to $70k. Now now the $100k house costs more. And the house usually doesn't even keep up with inflation. So it's a depreciating asset if you factor in inflation.

That being said money can be made with real estate and passive income can be earned but make no mistake, it's not an investment. It's a tool, a commodity, a necessity, but no investment. At least not by my definition of the word.

smartest org user

 

[Brus Wane]

Do we need shelter? Yes.
Does real estate appreciate in price? Yes.

These things dont mean it's an investment. And here's why, by my criteria at least:

1. It doesn't have a fixed supply.

Anyone can just build an identical house right next to yours. If you don't believe this disqualifies it from being an investment, then why why can't something like a gaming console be an investment? Because the supply goes out into oblivion. But a gaming console doesn't appreciate in price, so it's not even in the discussion. Investments must have a fixed supply that cannot be man made.

Thats why you don't invest in some land glutted place like Iceland or Uruguay

Singapore, Hong Kong, San Francisco (due to the height limits) is where you want to be.

High population density with a "fixed supply"

2. It doesn't have liquidity.

When you sell a home you have to find a buyer willing to pay the entire pricetag. No such thing need be in stocks, gold, or crypto. You just sell and get money. Why is this? Because the 3 aforementioned have a pool of fiat that trades against the dollar. The house does not. Every house is on its own.

Liquidity isn't a prerequisite to be considered an investment.

As long as what you've plonked your hard earned dollars down into produces cold hard motherfucking cash for you over time, its an investment.

Now, whether its a good or bad investment is an entirely different matter.

3. The price of a house never actually goes up

It just increases because the value of the dollar decreases. $100k loses purchasing power to $70k. Now now the $100k house costs more. And the house usually doesn't even keep up with inflation. So it's a depreciating asset if you factor in inflation.

Again, not true if its real estate in cities with high demand for housing.

Don't look at places like suburban USA.

HK, SG, SF, Seoul... that's where you'll find that RE price growth outpace inflation over time. And so does the rental yield.

That being said money can be made with real estate and passive income can be earned but make no mistake, it's not an investment. It's a tool, a commodity, a necessity, but no investment. At least not by my definition of the word.

Hmmmmm... did I perhaps change your mind OP?

 

[Anchor_Ship]

another thing that can make a house go up is the rising GDP of the area of the location which will increase the value of the property

Thanks for sharing this on a looksmaxxing forum where majority of people are too young to even buy property.

Houses are a capital asset, capital assets are used to generate revenue over 1+ year.
Investments are the purchase of a capital asset.
Therefore house = investment.
Maybe the real (adjusted for inflation) price of the house will not necessarily increase, that's obviously variable depending on so many factors, but most will. The reason they are (good) investments is what you can do with them whilst you own them.


Land is the only non-current asset that does not suffer from depreciation so this is absolutely not true.

Making up your own criteria for what makes something an investment does not mean it's not an investment.

 

[Joka]

It doesn't have a fixed supply.

Name a good investment that does by the way you’re defining it. It’s not that there is a fixed supply that makes something a good investment its that it has value. Gold has value because you have to mine it. Stocks have value because someone worked to build the company.

 

[meropeu]

Do we need shelter? Yes.
Does real estate appreciate in price? Yes.

These things dont mean it's an investment. And here's why, by my criteria at least:

1. It doesn't have a fixed supply.

Anyone can just build an identical house right next to yours. If you don't believe this disqualifies it from being an investment, then why why can't something like a gaming console be an investment? Because the supply goes out into oblivion. But a gaming console doesn't appreciate in price, so it's not even in the discussion. Investments must have a fixed supply that cannot be man made.

2. It doesn't have liquidity.

When you sell a home you have to find a buyer willing to pay the entire pricetag. No such thing need be in stocks, gold, or crypto. You just sell and get money. Why is this? Because the 3 aforementioned have a pool of fiat that trades against the dollar. The house does not. Every house is on its own.

3. The price of a house never actually goes up

It just increases because the value of the dollar decreases. $100k loses purchasing power to $70k. Now now the $100k house costs more. And the house usually doesn't even keep up with inflation. So it's a depreciating asset if you factor in inflation.

That being said money can be made with real estate and passive income can be earned but make no mistake, it's not an investment. It's a tool, a commodity, a necessity, but no investment. At least not by my definition of the word.

Highly cope. I made over 30k only selling a land i bought years ago for 15k. This is is best thing u can buy

 

[Jonnyboi]

Yeah it's shit. Even if u rent out a place, all the money goes towards ammatorizarion paying off the interest for the first 10 years before you get to see a glimpse of profit

 

[danielmoss]

If it is an asset then the purchase of it is an investment.

You are correct.

 

[danielmoss]

it's not an investment. It's a tool, a commodity, a necessity, but no investment.

It's an investment. You are tripping.