Simi60 has his living situation down pat. A good example if so inclined and okay with full time anchoring out.
The one flaw in his reasoning is he only uses purchase price in equation. Ignores salvage/resale value. Not sure how long he's owned his boat, but let's say 7 years and has $200k USD into it. Today, he might get $150k after a lengthy listing period (all guesses. No idea actual market)
And the $200k US is almost double the real spend due to exchange rates in 2016
I'n Oz bucks including immediate upgrades so we could launch and live totally off grid was near enough to $150aud so $108 usd.
We stole her well and truly during the buy and when we sell her I'll be a realist as the way I see it she owes us nothing.
Suppose instead he bought a condo 7 years ago for $200k. Probably worth $600k or more today
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There was not much in Australia in 2016 for $150 aud unless buying in small towns and even then, slim pickings
We bought and built in the regionals 10 years earlier and cashed out over the last 2 years, zero debt and war chest full.
2016 in the capitals was more a $500,000 play for anything half decent
We still have our late 90's capital city house in play, unencumbered and rented out.
Granted, last seven years has seen extraordinary appreciation in housing. But as a general rule, housing is a good savings account for most people.
For sure
But here the gains you mention have been seen in the capital cities, not so much in regionals
2016 in the capitals would have been a $500,000 AUD buy in at that time or $360,000 USD
And while the price now in AUD would be $750k the USD now would be $474k usd
Exchange rates and timing
That said, I sure appreciate Simi's perspective. It's rare but deserves consideration
Peter
Thanks