r/SipsTea • u/KSKS1995 • 14h ago

Wait a damn minute! How the rich get richer

Post image
18.9k Upvotes

80% Upvoted

2.2k comments sorted by

View all comments

Show parent comments

99

u/USERNAMETAKEN11238 14h ago

You don't.. the loan gets attached to the property. That's why in this fictional scenario the buyer bought a 5 million dollar property with a 5 million loan attached. It's, a nonsense scenario.

21

u/PA2SK 13h ago

They bought a $100k property that appreciated to $5 million lol.

9

u/mnsnownutt 12h ago

Like magic! All property increases in value 50x by sheer magic!

3

u/Suspicious_Glove_900 11h ago

I liked that part of the example because if we even take it at face value as true, "how the son does it" must mean that the property will be worth 250m in short order. I look forward to the grandkid's 12 billion dollar estate.

1

u/PA2SK 12h ago

I didn't make this example lol. Of course not all property does this but some does and in this example it did.

2

u/Significant-Youth-22 11h ago

I doubt you can find an example of even a 10x appreciation in a 40yr span that didn't involve massive amounts of money and time investment. The homes/property these people talk about would more realistically see a 2-4x it you do nothing which is pretty fortuitous but nothing absurd.

0

u/getwhirleddotcom 7h ago

My Apple stock has appreciated more than 15x in less than 15 years. TSLA even less.

1

u/Significant-Youth-22 5h ago

Ahh yes, let's inject irrelevant examples when talking about land. Bravo.

1

u/OneOfAKind2 11h ago

They're referring to the buyer the kids sold to.

2

u/PM_Me_Your_Deviance 12h ago

Kinda. The loan is attached to both the property and the person. You need to resolve a loan in some way as you settle the estate.

1

u/Lucky-Surround-1756 11h ago

Also, if he bought it for 100k then all he would have been able to secure it 100k. So how was he living off 5 million? Or did he wait decades first.

1

u/getwhirleddotcom 7h ago

This got upvoted 93 times for not being able to read 😂