Saying one shouldn’t buy at $825K because income is $135K has nothing to do with whether it is worth buying.
…… If it were worth $1M+ you should do whatever you can to buy it and flip it or keep it…. (It DOES happen)
I don’t think there are ANY ‘genuinely safe stocks’
There are fortunes to be made in the right “new investments”
We ARE in a huge credit bubble, but there is more wealth around today than ever before with many people chasing yield.
Interest creates even more wealth. This bubble could last 50 years, or just a few more months. Rates could be kep artificially low for decades.
Carry trade keeps markets in check.
The average Joe’s & Jane’s that contribute to a 401K
on a regular basis are part of a potential problem, not a solution.
You can be right in the short term and wrong in the long run.
You can be wrong in the short term and right in the long run.
Back to the OP, it doesn’t make sense to me because the numbers don’t work out. It has nothing to do with what his income is nor the fact that a ‘friend’ recommended it.
One needs to understand the risks associated with any investment and how to analyze them, as well as carrying costs associated with real estate that don’t exist with stocks.
Most people get hurt when the market falls, a small group will make a fortune.
