1,333 karma · joined February 12, 2012
https://www.numbeo.com/property-investment/rankings.jsp
The ROI absolutely does not make sense but it's real. A large portion of the world believe that the only two investment classes are real estate and government bonds.
People are overly obsessed with home ownership and being free and clear as soon as possible so they blindly repeat adages like "paying the landlord's rent" and "flushing your money away" without running the numbers.
Would you buy an apartment in Taipei, where a $1M apartment rents for $1k a month? I'd gladly pay my landlord's mortgage in that case.
It all depends on interest rates, rent to price ratio, and opportunity cost.
I hope for his sake this is all a performance art but but I doubt it.
Either way it could be a meme stock for a long time.
Put another way, say you and I both have occluded arteries, and we are both inhaling and ingesting microplastics because they're inescapable. I have plastic in my clogs and you do not. What are you doing differently?
Which sounds like an awesome side effect.
Lots of cash doing nothing on the sidelines is risky in the long term because inflation. A "risky asset" is risky in the short term because of volatility.
https://www.fda.gov/drugs/drug-safety-and-availability/fda-d...
Every reluctant landlord capitulates and sells... eventually.
You don't have to pretend he is perfect or justify all his actions. Just admit that any human who made the decisions he did would be rightfully judged as an evil person, but since "might makes right" I guess god is infallible.
Mental gymnastics only helps you sleep at night and won't change the rest of our minds.
Also this discussion went off topic real fast and my comment doesn't help.
Membership was $5 a month (for a 3-year contract.
Now I live in Romania and gym memberships are $50-70 a month but people actually go there
I've enjoyed reading many of his essays nevertheless.
Odd angle for a hit piece.
Mortgages frequently get bundled up and sold as securities. That's just how it works. Blackrock is one institutional buyer. A mortgage is someone's liability and another's security.
Nothing about "mortgage securities" implies poor lending practices or overleveraging.