Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 9 years ago,

User Stats

431
Posts
171
Votes
Joseph Weisenbloom
  • Investor
  • Austin, TX
171
Votes |
431
Posts

Why I hate appreciation

Joseph Weisenbloom
  • Investor
  • Austin, TX
Posted

I knew that title was going to grab your attention :) Before you go typing to disprove me just hear me out here as a thought experiment. 

Let me preface this conversation by saying I believe a dollar today is worth a whole lot more than a dollar tomorow. Not only the time value of money as inflation makes dollars less valuable but also what I would like to call the "time value of life".

I am 26 years old and at no other time in my life will I have the ability to enjoy myself more than right now. I have full mobility of my body and health, I dont have many responsibilities like kids, wife, employees etc. I am able to do things without the impacts of societal demands to conform. That being said I can enjoy a dollar a lot more now than I can in the future. This fact makes investing for cashflow today a lot more enticing than investing for appreciation in the future.

So if this is my goal why would I hate appreciation you might ask? I try to invest in B/C properties but I invest in a fast growing area so a rising tide raises all ships. Despite my attempts my properties still rise in value over inflation. This rise in value causes appraisal districts to get all excited increase my taxes. Even though my rents are going up as well, my taxes are going up even faster resulting in a lower cashflow. 

This is my argument for hating appreciation. I am forced to have a diminished cashflow now when my time value of life is higher in exchange for apprciation in the future when my time value of life is lower. 

Any merit to my arguement? Or am I just a dummy from the YOLO generation that doesnt undestand life? Or are there so many false assumptions in my logic that my argument is a pile of dookie? Or should I think twice before I post things online after waking up at 4 AM with a strange thought?

Discussion commence...

Loading replies...