Are you in the 9.9%?

[Benny Profane]

Benny bangs forehead on table multiple times.

I give up. This thread is indicative of why we had a housing bubble , Tesla and Uber are with billions, and crypto currencies exist. Good luck with your retirement, folks.

[The AD]

I give up.

Now that's progress!

[iceman]

Benny, you said that the money owed on a house is debt, and you are correct, But then you said "subtract it from the equity" and that's just wrong. Equity is the money that's left over (assuming some is left over) when the debt is paid off. That's the definition of equity. If you have a house that you could sell for a million dollars, and you owe $500,000, you have $500,000 in equity. How is this confusing?

If you paid a million dollars for a house, owe a million dollars, and can sell it for only $500,000 now, you don't have any equity, you just have debt, or negative equity.

If you're calculating net worth you wouldn't use the total value of the home (unless you own it free and clear), you would only use the equity in your calculation. That's why it's "net" worth. Money left over after all debts are satisfied. Net.

[Benny Profane]

You caught me in a poorly worded statement. Subtract the mortgage from assets, yes.

Ok, now I'm gone. Ow, my head.

[XXX-er]

BUT THEY HAVE A MILLION DOLLAR HOUSE!

a million in Vancover would get you a crack shack, not a very stable investment unless you can somehow sell it to a developer who will make it into condo's

but I actualy know a guy from Vancover who came up here with probably a million, bought 2 houses and a store front on main which would be producing steady income from 3 sources ... very stable & well diversifyed

[iceman]

You caught me in a poorly worded statement.

I wasn't trying to catch you, I was trying to understand what the issue you're having is and if you get what equity is then I don't understand why you're banging your head and getting all frustrated.

[Benny Profane]

Because a lot of people here don't recognize a very basic personal finance thing.

[Benny Profane]

a million in Vancover would get you a crack shack, not a very stable investment unless you can somehow sell it to a developer who will make it into condo's

but I actualy know a guy from Vancover who came up here with probably a million, bought 2 houses and a store front on main which would be producing steady income from 3 sources ... very stable & well diversifyed

I know. But, the argument is that they paid shit for it a long time ago, paid it off, now IT'S A MILLION DOLLAR HOUSE.

[fatnslow]

Because a lot of people here don't recognize a very basic personal finance thing.

Pretty much all of America.

[The AD]

One thing... True/false: influence in SF > influence in KS, both in difficulty to $acquire and power on the national scale.

I'd say false. There are two senators from every state, regardless of size. Smaller states tend to have better representation at the national level. If you live in California your vote counts less than someone in Kansas. I'm not sure why a rich Californian would have more 'power' at the national level than a rich Kansan.

[AdironRider]

In a very basic sense, I kinda get the whole argument of net worth can "buy" more influence depending on where you live. If you had a couple mill and bought up half of main street in some podunk town, you are obviously going to be able to sway stuff on a town and maybe even county level. But its some podunk county, so the benefit of doing so is what, cutting to the front of the line at the school bake sale?

In terms of the article, it kinda seemed like preaching from an ivory tower. Dude literally describes his oil baron (or I guess like right hand to an oil baron) grandfather driving a Bentley, but he was only middle class. Right. Meanwhile he writes the article from his cushy Brookline pad, after getting educated at Yale, writing a sweet cushy think piece for the Atlantic, getting a couple bucks a word bitching about Brookline and Yale.

I mean, sell your shit and move to Mattapan or Everett and practice what you preach. Odds of that happening are slim.

[iceman]

Well if you had say 10 million dollars and lived in rural Kansas, you could probably influence the election process, maybe get your guy elected to congress, maybe get a judge or two elected, get things to work your way quite a bit.

If you had 10 million dollars in New York you're just another guy in the upper middle class with no pull at all, worried about how you're gonna swing the bill for private schools and live in a decent place and pay for the wife's boob lift and not crush the nest egg.

I think you can have a lot more influence in (for instance) Kansas than you can in New York (or San Fran, LA, Boston...) for the exact same amount of money. Sure you're not in the "center of the universe" but hey you can visit a couple times a year and see a show and get a good meal and stay in a nice hotel and then go home. And still have most of your money when you get there.

[Bobby Stainless]

It's awfully flat in KS. Nice movie theaters though. At least in Wichita.

[iceman]

Well, maybe not Kansas. Although the same movies are playing as in NYC.

[iceman]

Obviously the heart of the matter is income potential. People live in NYC in large part because they can make the big bucks, and many do. It's hard to make 10 million bucks in Kansas, not nearly as hard in NYC. But if you make big bucks in NYC and spend it all just living medium-large, what's the point unless you just dig New York? (or LA etc...)

[XXX-er]

I know. But, the argument is that they paid shit for it a long time ago, paid it off, now IT'S A MILLION DOLLAR HOUSE.

the reason a nothing house in Vangroovy is worth 1.3 million on average is not becuse they paid nothing for it a long time ago, its becuz chinese money launderers have been using Vangroovy RE as back accounts for the last 15 yars ... completely fucked up the average Canadian

Sure its narth of a million but unless they leave their beloved Vangroovy it doesn't do anything for them and the taxes are huge, could be 30k a year, it is possible to defer those taxes until the property is sold but I think most people were happier when RE was reasonable

[Benny Profane]

So leave.

The whole American market is still fucked up by stupid money. I only wish I got on that bus when I was young.

[BeardMech]

having 10 mil is considered upper middle class? Im doing middle class wrong.

[MTT]

Interesting thread,

I do not qualify. But!
I own my double wide, and have no debt. None!

Have a bit of money in the bank and make just into the 6 figure range each year.

I think I win

[XXX-er]

So leave.

The whole American market is still fucked up by stupid money. I only wish I got on that bus when I was young.

yeah but unlike you who doesn't seem to have any ties to anything, people don't wana leave, yes I know they are millionaires but its theoretical ... cuz its not until they sell out

good hindsite tho

[iceman]

having 10 mil is considered upper middle class? Im doing middle class wrong.

$10 million in net worth does not make you rich in NYC. But if you cash out and split to North Bend WA, yeah that's some money. Even there, I just looked at Zillow, you can drop $2 mil+ on a house pretty quick if that's your bag.

[GoldMember]

... But if you cash out and split to North Bend WA, yeah that's some money....

And if you do that, there's a good chance you might be eaten by a cougar!

[iceman]

Interesting thread,

I do not qualify. But!
I own my double wide, and have no debt. None!

Have a bit of money in the bank and make just into the 6 figure range each year.

I think I win

I got some places to go, I owe nobody nothing. We have no debt and I'm working on a cost-reduction strategy against a strong headwind (my wife) and an income-assurance plan in order to be able to never think about money again. That is what freedom is. Fuck influence, I want freedom.

[Norseman]

... to be able to never think about money again. That is what freedom is. Fuck influence, I want freedom.

Jah mon.

[iceman]

Just do your shit. If the bills are covered, it doesn't matter what the market is doing, just live. Been working on it a long fucking time. I'm close.

So I'll probably die next week.