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Originally Posted by Steely Dan
A. Not everyone who's looking for a place to live views it as an "investment", in the strictly financial sense.
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We aren't talking about a place to live. We're talking about leveraged RE homeownership, which, historically, wasn't even a thing, and is still relatively unusual in the global context. Most places to live are rented or inherited or cash purchases.
Quote:
Originally Posted by Steely Dan
B. As TUP touched upon, returns are not exclusively measured in dollars and cents.
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Of course not exclusively, but primarily. Or there's no point. There are plenty of places to live that don't require leveraging wealth.
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Originally Posted by Steely Dan
A lot of regular (ie. not wealthy) people are in the INAFPTL realm.
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I don't know what that acronym means, but non-wealthy people should absolutely be the most cautious about leveraging their assets. It's actually wealthy people who don't need to be counting ROI.
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Originally Posted by Steely Dan
You're the only person who said "deal".
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I'm not going through this thread to see who said what, but irrelevant. These terms are roughly synonymous and the discussion is about good deals.
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Originally Posted by Steely Dan
Residential real estate in urban chicago is objectively "cheaper"(costs less money) than like for like residential real estate in most of America's other top tier urban cities.
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Disagreed. There are good reasons why Chicago RE costs less. The main reason is that the returns are comparatively terrible. And there are plenty of first tier metros with comparable apples-apples housing prices. Philly, Atlanta, Dallas, Houston are all in the same ballpark.
Quote:
Originally Posted by Steely Dan
"Bargain" can be a trickier word, because there is a context for it that does come with a value aspect, and in that usage, yes, "you get what you pay for" is a part of the equation, but I think the way most people use the word "bargain" in this thread when speaking about Chicago real estate prices is in the different sense of "wow, you can get so much for so little!".
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You don't get "so much for so little". That's the point. Bad returns means you get "so little for so much". This puts downward pressure on prices. You're plowing money into an asset that sells at 2005 prices. That isn't cheap.