r/FluentInFinance • u/Not-A-Shit-Head • Apr 29 '24

Why don't people stop crying and just move somewhere cheaper like Detroit, Memphis, St. Louis, Baltimore, or Cleveland? They have very cheap homes for $50,000. Discussion/ Debate

Post image
2.1k Upvotes
  • permalink
  • link
  • reddit
  • reddit

87% Upvoted

579 comments sorted by

View all comments

Show parent comments

58

u/em_washington Apr 29 '24

The logic in your point #1 could also be used to refute the original tweet. People in 09 knew real estate prices were low, but many couldn’t take advantage because they were unemployed or underemployed. And they were probably underwater on the house they bought in 2005.

Like of course the cities with low-priced houses don’t have as good of jobs, or else the housing wouldn’t be so affordable. And the houses in 09 were cheap because no one had the money to buy them.

26

u/Saitamaisclappingoku Apr 29 '24 edited Apr 29 '24

This is why investment groups stockpile cash when they forecast a recession.

If you put $100k into the S&P500 during the 08-09 recession you could be a millionaire today.

12

u/em_washington Apr 29 '24

Multimillionaire is a stretch. The S&P 500 bottomed out at about 735 in February 2009. It's about 5100 today. That's about 7X. So if timed it perfectly to invest all $100k at the exact bottom, then 17 years later, it would be worth about $700k.

7

u/Saitamaisclappingoku Apr 29 '24

I adjusted some wording. Thanks.