Oddbean

I wouldn’t personally purchase a home that expensive with only putting that much down. Obviously Bitcoin is doing better as an investment, but if you’re saying that people should rent (pay someone else’s mortgage-giving them equity instead of yourself) is a better move than owning, that’s not my experience. I rented shitty tiny apartments for the same price as my mortgage now. The rents have gone up and my mortgage is the same, leaving more money for Bitcoin. The market is fucked right now and if I had waited, I would have been priced out and probably would have never been able to own anything. There’s things you can do here like converting garages into ADUs as rentals or overfitting solar panels and selling power back to grid/while also getting tax credits that factor into those calculations.

400k to 500k is the average home price right now. Does the mortgage payment you are comparing your apartment to include property taxes, maintenance, and insurance? Also how much interest has that mortgage owner paid over the years? How much down payment did they pay? The math I calculated shows that the total amount you pay in excess of renting an apartment would give you a better return than buying a home. The trend is clear from this picture. What do you think will be the cost of a home priced in bitcoin in 4 years? Maybe 2.5? What about 8 years? https://image.nostr.build/fc1d8df1e9d7a3ece9f70b3ec0d3cf6ac478279132a181f8e1951f43dd4bfeca.jpg

Yeah all included (taxes, utilities, everything). I would get half the square footage and live in a much more sketchy area if I had to rent right now. Again, yeah it would be nice if we could have put it all in bitcoin, but we need to live somewhere and it happens to be cheaper for us to own where we are and when we got in.

In eight years, I suspect you're net worth would be more if you rent than buy. I compared my parent"s house in southern California to gold in 1989(the year they bought) Gold would have done better, so renting + stacking the difference is a better bet if your net worth is your only value. If you live in a van and stack sats, your net worth will be even higher. If you live in a tent and stack sats, you'll be super rich. If you live under a bridge and stack sats, you will become as rich as you can possibly be. Money isn't the only value though. Maybe living under a bridge means you're worth 100 million in 8 years, but owning a house means your worth 50 million. I would choose the house, because of the marginal theory of return, but value is subjective. If I was single, I would live in a van.