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Joseph Weisenbloom
  • Investor
  • Austin, TX
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Why I hate appreciation

Joseph Weisenbloom
  • Investor
  • Austin, TX
Posted Dec 17 2015, 02:21

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...

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