Renting could never compare to owning, as Equity is the biggest source of wealth for the middle class in the US. Not owning equity to pass on to your kids is one of the worst mistakes you can make. IF you can afford that sort of thing.
How have we screwed up as a society, much less species, when shelter is seen as a financial investment rather than what it is, a thing we literally need to survive?
Raising your kid(s) right is better than passing any monetary wealth on to them. If they grow up knowing that they’re set and will inherit your money/house, they may get lazy and just depend on that wealth. That money will be gone after the 3rd generation.
Kinda shitty that people are downvoting this. Raising your kids right includes giving them the education they need to live and acquire wealth as well, so it’s not like this is wrong.
Your parents zipcode is the best indicator of your success in life. We don’t live in a merit based situation. This isn’t up for debate. Most Americans get most of their wealth as the equity their parents owned that they got from their parents all the way back to the homestead act. My FIL has a nice house. His dad bought it for him with a home equity loan. He bought at least three of his kids homes with home equity loans (no not the one I married) he still owns that home, and his kids do too, and their kids will probably have their parents help them with buying a home. That’s the majorly of net worth of all of these people.
Not owning equity to pass on to your kids is one of the worst mistakes you can make.
“Oops, I guess I made the ‘mistake’ of not making enough money to afford the outrageous price of real estate. I guess my children deserve to be poor.”
Or maybe we should treat housing as an public resource rather than an investment, and encourage the market to keep prices low for the sake of maintaining a healthy society.
Leaving out the last sentence in your quoting does a disservice to what they were pointing out.
They weren’t saying anyone deserves to be poor. They weren’t saying that real estate being an investment is ideal or how it should be.
The housing market is historically, currently, and prospectively an investment, and one of the only high-return, low-risk investments available to the middle class. If you can play that game and don’t, then you are making a mistake, especially if you have kids.
Equity is pointless when your $30,000 roof and $20,000 HVAC break at the same time and you’re taking out a 20 year home equity loan to replace them. (And good luck with the $70,000 windows.)
I don’t know about that - I had my roof replaced (by insurance thankfully) about a year ago, and it was ~26k. HVAC out of pocket a couple years ago was about 15k. Not fun!
Not at all, these are (roughly) prices for 2-3 bedroom single-family homes. If curious, check AIs for any reasonably successful region around the country like Raleigh, San Jose, Austin, etc. Prices are about the same. I looked up the cost for a dual system for a larger home (that would have 2x AC, 2x furnace) and that jumped to $30k-40k for HVAC. Water heater install (gas, tank) can run $800-3000 depending on the market.
Asking others for prices for windows, I think the spread was somewhere between $50k-90k, although it’s been a while since I asked peeps. That’s before actually going after specialty windows.
Those costs might reflect new build estimates, not regular repair or replacement, which is the point of your OG post. Furnace repair is like $300-500 if you can’t DIY and replacement is $3-7k depending on fuel and region.
Furnace repair is stupid in cost if you can’t do it yourself. Replacement you mentioned is half the cost. Double it for AC. Still $14k. Even $7k is an unpleasant surprise. Mid-range equipment you aren’t replacing in 5 years makes the cost go up as well.
Edit: those numbers are still way low. I’ve seen $10k-12k for just a furnace.
Renting could never compare to owning, as Equity is the biggest source of wealth for the middle class in the US. Not owning equity to pass on to your kids is one of the worst mistakes you can make. IF you can afford that sort of thing.
Kids? I’m not a fan of parasites
Congratulations.
How have we screwed up as a society, much less species, when shelter is seen as a financial investment rather than what it is, a thing we literally need to survive?
Well, as houses don’t magically appear out of thin air, I guess it has been like this since we started building permanent shelter.
Until relatively recently, it wasn’t that uncommon to just go and find some unused land and build a house on it. No intergenerational wealth required.
Unused by white people?
Raising your kid(s) right is better than passing any monetary wealth on to them. If they grow up knowing that they’re set and will inherit your money/house, they may get lazy and just depend on that wealth. That money will be gone after the 3rd generation.
Kinda shitty that people are downvoting this. Raising your kids right includes giving them the education they need to live and acquire wealth as well, so it’s not like this is wrong.
Your parents zipcode is the best indicator of your success in life. We don’t live in a merit based situation. This isn’t up for debate. Most Americans get most of their wealth as the equity their parents owned that they got from their parents all the way back to the homestead act. My FIL has a nice house. His dad bought it for him with a home equity loan. He bought at least three of his kids homes with home equity loans (no not the one I married) he still owns that home, and his kids do too, and their kids will probably have their parents help them with buying a home. That’s the majorly of net worth of all of these people.
“Oops, I guess I made the ‘mistake’ of not making enough money to afford the outrageous price of real estate. I guess my children deserve to be poor.”
Or maybe we should treat housing as an public resource rather than an investment, and encourage the market to keep prices low for the sake of maintaining a healthy society.
So you can’t afford that sort of thing? Well if you can’t afford that sort of thing, I guess you’d never say you could afford that sort of thing.
Leaving out the last sentence in your quoting does a disservice to what they were pointing out.
They weren’t saying anyone deserves to be poor. They weren’t saying that real estate being an investment is ideal or how it should be.
The housing market is historically, currently, and prospectively an investment, and one of the only high-return, low-risk investments available to the middle class. If you can play that game and don’t, then you are making a mistake, especially if you have kids.
Equity is pointless when your $30,000 roof and $20,000 HVAC break at the same time and you’re taking out a 20 year home equity loan to replace them. (And good luck with the $70,000 windows.)
Yes, If you can’t afford it, it can be a totally unrealistic thing.
2-4x reality, but yeah…
I don’t know about that - I had my roof replaced (by insurance thankfully) about a year ago, and it was ~26k. HVAC out of pocket a couple years ago was about 15k. Not fun!
It depends on how big your house is.
I paid $10k for a 4 ton 15 SEER AC this summer (this depends on location I suppose). I paid $13k for a normal roof replacement last year.
1600 sqft house.
Not at all, these are (roughly) prices for 2-3 bedroom single-family homes. If curious, check AIs for any reasonably successful region around the country like Raleigh, San Jose, Austin, etc. Prices are about the same. I looked up the cost for a dual system for a larger home (that would have 2x AC, 2x furnace) and that jumped to $30k-40k for HVAC. Water heater install (gas, tank) can run $800-3000 depending on the market.
Asking others for prices for windows, I think the spread was somewhere between $50k-90k, although it’s been a while since I asked peeps. That’s before actually going after specialty windows.
Prices have skyrocketed since the pandemic.
Those costs might reflect new build estimates, not regular repair or replacement, which is the point of your OG post. Furnace repair is like $300-500 if you can’t DIY and replacement is $3-7k depending on fuel and region.
Furnace repair is stupid in cost if you can’t do it yourself. Replacement you mentioned is half the cost. Double it for AC. Still $14k. Even $7k is an unpleasant surprise. Mid-range equipment you aren’t replacing in 5 years makes the cost go up as well.
Edit: those numbers are still way low. I’ve seen $10k-12k for just a furnace.
the homeowner could have an industrial HVAC system and a wooden roof