Afraid to buy home but won’t sell stocks whatever happens


#62

I guess feel free to share, what can i say :slight_smile:


#63

I dunno about this one Marcus! I have found that getting married to a frugal spouse at a relatively young age AND NOT GETTING DIVORCED to be a fantastic way to build financial stability. (pool expenses, two incomes, etc.).

However, I have found that having kids results in expenditures that far outweigh the tax savings! :slight_smile: :slight_smile:


#64

I didn’t say anything about total financial picture, just the tax bill.


#65

Stocks are much more volatile than RE…As Bolge said in his 66 years of working in stocks…Two 50% drops one 25% drop in one day and now we have the most volatile market ever…And the OP is afraid of RE


#66

Yes, unless you derive a big majority of your income from, say, rental income and you are able to shield most of that income from current-year taxes via depreciation. In that scenario, it does not matter if you live in a high tax or low tax state. Then, the 20pc pass through deduction would be icing on the cake.


#67

I think everyone should do their 2018 taxes based on their 2018 income. I don’t think the difference means anything. Stocks can fall anytime and quickly. Do your own stress test . Can you survive a 50% drop in stocks and 30% drop in RE values

But I would put no value in some random dink couple who is waiting for a 40% drop in BA real estate.
Where were these geniuses in 2009 when everything was on sale.
When and if a crash happens few will have the resources and the guts to buy.
Their confidence in stocks over real estate is comical.
What about 1929, 1987, 2001, 2009. Are they ready for a repeat?


#68

Eagerly waiting, probably last chance before I go senile if I am not already :crazy_face:


#69

RE has a fundamental edge over stocks. Scarcity.
No way enough supply can be built. Even nationally let alone in the BA. Plus RE is sticky. Hard to buy, even harder to sell. Can’t just panic and sell.
Plus it can yield income. How may tech stocks pay dividends?


#70

RE —> that income can be considered nearly as a tax free dividend at that!


#71

Price of SV houses = f(financial health of tech companies)


#72

Which is kind of diversified. 2000 bust didnt wipe out a lot from re prices…


#73

It did, the re-bounce is fast.


#74

Well, exactly.


#75

Don’t think is due to diversification. Is tech startups, after getting retrenched, those who have money startup companies. Some who manage to sell before the crash, move in to buy the houses.