Take 500K tax free gain or convert primary home to rental property

Bay Area
61

Anyone here truly rich?
How much is enough
Funny how 25 years ago $3m was rich.
Now it is a minimum of $25m. Much faster gap than can be explained by inflation.
Seems like the rich have created a self defeating rat race.
Hard to keep up. Most die trying.

https://www.bloomberg.com/news/articles/2018-05-23/bankers-don-t-think-you-re-rich-unless-you-have-25-million?utm_source=facebook&utm_medium=cpc&utm_campaign=keyweesubs&utm_content=business&kwp_0=1206305&kwp_4=3835830&kwp_1=1598865

1 Like
62

You?

63

No. In fact only a couple of people here lust for the $25m entry amount. Problem is the goal post keeps getting farther away. It is truly a fools game. Best to be comfortable and explore more rewarding goals. Using money as a measure of success is becoming less satisfying. And definitely less attainable.
Kind of like buying a house in PA. $1m In 1989 means $4m today. Will it be $16m in 30 years?

3 Likes
64

Most people are not good judges of people. Those who can are CEOs :slight_smile: and founders of successful companies.

65

The inflation created by fiat money is not computed correctly. IMHO, house price appreciation is a better approximate of the general inflation rate.

66

In most parts of the country there is no appreciation of house prices. Rather houses are depreciating assets.

67

National general inflation rate is quite meaningless anyway or rather we can exploit the situation :slight_smile: Borrow cheap to buy faster appreciating asset in Bay Area/ tech hubs.

68

This realization comes with kind of Maturity…:smile:

69

Because of lack of time to accumulate wealth, have to justify your failure :slight_smile: to accumulate $5M per adult.

70

People who consistently save will always beat the non-savers. That’s the most important part.

71

More important than saving, is the willingness to leverage and invest.

72

Macro Econ 101.

I = S :slight_smile:

73

I think rent is a better measurement of inflation than home price. Rent control is against the nature

74

Bold is why rent is not good.

75

Then use the mortgage payment as the inflation measure. Home price is not a good measurement since home purchase is financed

76

There is already a standard method to measure inflation. No need to be inventive here and come up with some laughable suggestions.

77

If there’s no savings, there’s nothing to invest.

78

Ah ha!

79

What I meant was you should borrow money to invest and not to rely only on your savings.

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80

College Park is a garbage area. Right by the airport. You’re better off looking on the east side.

Also, looking at the flyer again, I would be really surprised if you could get $2150 in that neighborhood in rent. Demographics don’t match up.

1 Like