$500,000 house or $2000 a month guaranteed income?

[kyupol]

What would you choose if given the choice? Can only have 1 or the other...

• $500,000 house
• $2000 a month guaranteed income

Show results

[NOOR_ASAKZ05]

$2000 is the salary of a soldier in Iraq, and needless to say, everyone wishes they had it, but the dangers in the army are great, and it truly deserves more than that.

[Lensing]

no brainer, gimme da income

[KevinReijnders]

I could probably buy a house with that guaranteed income

[kyupol]

Interesting... what rank?

[ThunderChicken]

I would definitely take the house. $2k/month wouldn't rent you a standard 2-bedroom apartment around here

Here is a random sample of a local $500k house. Note the estimated mortgage payment.

[EncryptedWriting]

Buy the house, flip it, sell it, and 1. Set up a high yield savings account 2. Continue to invest in my stock portfolio 3. Purchase property to live in permanently that is cheaper but will last me until wherever I want to live permanently

[GothickangelStudios]

When I lived in British Columbia (Canada) a shack not even a mobile home. Is about 500k.
Min non mold 1 bedroom home is about 1.2million.

Where I am in Ontario (Canada) its just as crazy. Where I am in London, ON a decent 2 bedroom world war 2 home without mold and rats is about 650K.

$2,000 would do a bachelor apt (no bedrooms. just bathroom, kitchen and living room used as a both living and bedroom) in a shady building.

You need about 3 to 4 thousand a month just to afford a 650k home.

[ThunderChicken]

Here in Nova Scotia a typical 3-bedroom bungalow on a 6000 square foot city lot cost about $200k up until about 2021. I bought a 3 level, 4-bed, 2 bath "saltbox" style house on a full acre in a local suburb for $280k back in 2012.

Then things went batshit crazy. About 4-5 years ago we had a huge influx of immigrants and prices for houses exploded. That $200k house was now worth north of $500. A house would be listed for $350k and would have a bidding war, which would cause it to go for $600k after only being listed for a day. A two bedroom apartment that would have been $1100/month in 2021 was suddenly worth $2500/month. People were buying properties sight unseen, because you didn't have time to physically look - by the time you drove to the house it already had dozens of bids, usually from somebody who was planning on turning it into a rental. This created a housing crisis because people were getting notices from their landlords that rent was doubling, tripling, or more. There are now several homeless encampments all over the city with people living in tents. These are mostly not drug addicts or vagrants - these are working couples and families who simply can't afford rent in today's market. Rents and mortgages went way up (as did groceries, utilities etc) but wages did not.

[NOOR_ASAKZ05]

A regular soldier's salary is around $2000, while officers and brigadier generals will earn much more.

[kyupol]

It's everywhere this whole overpriced real estate thing. I work with a guy who used to work in home construction. Apparently when he left his job in 2007, the meme was "residential construction doesn't make money. The money is in commercial real estate..." so that's why residential house prices get out of control. Combine that with bidding wars between rich people and corporations to acquire those houses as investment property.

I can foresee a real estate price drop once the birth rate (which is declining in most countries especially in the industrialized world) catches up with the market. When there's less people, it would mean less demand. Therefore real estate prices will drop.

In the meantime... I'm prepared to be homeless any day.
1) planet fitness membership = for showers. Also a little bit muscular, having confident body language, and clean shaven so I won't be suspected as a homeless should it happen (sorry the world is cruel to homeless. Ive seen it happen i can write an entire novel on it).

2) a van = can easily convert to a bed... I know all the truck stops and rest areas around.

3) work a lot and constantly investing. Living minimalist as possible.

4) storage unit = the few things I have and my stockpile of non perishable food.

[conventurecomics]

2k sounds monthly good.

[justincarbunkle]

The $500,000 house. It would take 21 years for that 2k to equal 500k, and would lose value due to inflation. I'd sell the house, get prob 450k after realtor + taxes, put 300k of that into stock and savings, get close to as much as that 2k/mo in interest, and I'd have 150k left right then to use however I'd want.

[jwabeasley]

I assume that's 2k/month guaranteed income on top of what I already make, and not instead of my regular pay! That would solve my budget problems and I'd be able to buy a house.

I'll probably live for more than 21 more years, so I'll make more from the 2k as well, and the taxes will be easier to handle than a house outside of my budget. I also won't be constrained by location or the other ...joys... of homeownership.

Property values where I am are just starting to come down...but they really have a long way to go. We need houses to be commodity priced and not investment-vehicle priced.

[Inspector_Spinda]

2000 on top of what I have already? Because 2000 is not enough itself at all.

[Jalvin]

If you budget well and after all deductions (taxes, groceries, utilities, and all) then you can save the surplus from the $2k to achieve that $500k in the end anyway. It'll take a while but hey, at least you're fed and clothed every month.

[ButterflyEmpress]

I'd take the money and add it to what I already make. If I lose my job I'd still have the free $2K/month to fall back on until I get another. If I get the $500,000 house I'd be stuck with taxes, utilities, and insurance that I may not afford with my current income.

[Shanny8]

It's everywhere this whole overpriced real estate thing

CORPORATIONS are buying up homes and artificially driving up the market value; a lot of this has been happening since the pandemic.

[VibrantFox]

CORPORATIONS are buying up homes and artificially driving up the market value; a lot of this has been happening since the pandemic.

BIG THIS

one of my fave explainers for this is a video i'd come across pretty recently (yes it's tiktok but watch it, trust)

https://www.tiktok.com/t/ZThMhdW3B/

it's rarely ever other "average individuals" but the mega wealthy and they're betting on us fighting each other so they can keep doing what they're doing without interruption which is why it's super important to remember that lil detail

[KevinReijnders]

It's because we treat a place to live as a speculative asset instead of a human right