Wow! Just wow!! Each and every week the Rational Reminder podcast just hits a grand slam! What an incredibly interesting, informative, and thought-changing resource which I consider myself very privileged and fortunate to listen to. Ben and Cameron continue to produce the ultimate in quality of thought and effort! Thank you to both of you and your entire production staff!
@@calum6590 Lol...Mr. Felix is a very tall gentleman, but, of course, I was indeed referring the quality of the podcast and the information derived therein. 😄
Ben, in regards to buildings’ depreciation: Yes of course but there are factors that can affect the level of depreciation such as the type of the structure (masonry, reinforced concrete etc) and the location (earthquakes). Without getting into much technical details you can find old Victorian houses made of bricks without any structural issues, in places with no seismic activity at all (London, UK). On the other hand, in Athens - Greece you can find old buildings made of concrete and steel that have reached their end of life due to accumulated small damages from earthquakes and steel corrosion. In this case you will end up the with value of the land (minus demolition costs). So someone can argue that in some cases the depression will be a small figure for a long term period (100+ years).
Thanks George. Depreciation takes two forms: physical depreciation, the normal wear and tear resulting from use; and functional deprecation, or obsolescence, as newer construction methods, standards, and materials make older homes less desirable. No building is immune to both, but they may be resilient to different degrees. I suspect some older homes may behave partially like collectibles.
Ben, maybe you could add a pinned comment to the TH-cam video for RR #180, for future viewers who may not hear the correction about Canadian housing in this episode. You could also edit the description, although I think fewer people would notice that.
Is Actual Rents a potentially flawed variable to use in this model considering there was a recent change to rent control laws in Ontario in ~2018 followed by a material increase in rent since? This could be artificially lowering your Ontario User Cost / Actual Rent ratio. The average annual rent in Ontario increased 2.5% on average between 1992 and 2016. But has averaged around 5% from 2017 through 2021. How does the model look if rents only increased 2.5% per year over the last few years instead of the 5%? Does that put your OUC/AC ratio higher than the 1 showed here? I also wonder if its possible for this model to be applied to a specific city or region like the GTA compared to more rural parts of Ontario which saw 50% to 100% increases during the pandemic.
Super awesome to see someone else have similar views to home ownership. I bought my home in my mid-20s and for years regretted it since nobody told me how much work it was to maintain it. Everyone was quick to tell me to buy a home to build equity, but I never heard once how much work would be involved to keep it up. Now that I've matured (and still in the same home), I can appreciate it a bit more, but there was a long period of time I should have probably rented. Good life lesson!
Not sure which podcast they were being referenced to but speaking for myself, I'm not in bitcoin because I think the market is inefficient. I'm in it because I think central banking monetary policy around fiat money is inefficient or bad or unsustainable or whichever word you want to use.
would be interesting to hear your guy's opionons on things like the magic formula, or the acquirers multiple. Are these good investment strategies that can beat the market, or is it only a thing that happened over a certain period. Or does the outperformance come as a result of factors.
Magic formula is value investing with a quality screen. Acquirers multiple is TEV/Earnings. That is again similar to value investing with a profitability screen. Both are likely explained by known factors.
Yeah crypto is... not for me. Real Vision made a separate channel for crypto because they got the same feedback. Some people are into stocks and crypto but many aren't, and those who aren't doesn't want to listen to even a single second about it.
![[FULL EP.16] เซียนพาลุย "เผือก-ฟรอยด์" กรี๊ดลั่น จนปูหนี | เฮ็ดอย่างเซียนหรั่ง | One Playground](http://i.ytimg.com/vi/FsqUvwS3b-Y/mqdefault.jpg)
Ben, you should write a book about explaining topics like that, in (relative) simple terms, or Renting vs buying, etc. This would be so interesting.
Wow! Just wow!! Each and every week the Rational Reminder podcast just hits a grand slam! What an incredibly interesting, informative, and thought-changing resource which I consider myself very privileged and fortunate to listen to. Ben and Cameron continue to produce the ultimate in quality of thought and effort! Thank you to both of you and your entire production staff!
Seeing "Wow! Just wow!!" I thought this was initially a comment about the size of Ben's feet.
@@calum6590 Lol...Mr. Felix is a very tall gentleman, but, of course, I was indeed referring the quality of the podcast and the information derived therein. 😄
Episode links continue to be immensely valuable to us spectators.
No idea how this isn't huge on TH-cam to be honest
Absolutely amazing, like always. Thank you for your time and knowledge Ben and Cameron!
Love that Oscar joined the conversation 🐶🐾🦴
Ben, in regards to buildings’ depreciation: Yes of course but there are factors that can affect the level of depreciation such as the type of the structure (masonry, reinforced concrete etc) and the location (earthquakes). Without getting into much technical details you can find old Victorian houses made of bricks without any structural issues, in places with no seismic activity at all (London, UK). On the other hand, in Athens - Greece you can find old buildings made of concrete and steel that have reached their end of life due to accumulated small damages from earthquakes and steel corrosion. In this case you will end up the with value of the land (minus demolition costs). So someone can argue that in some cases the depression will be a small figure for a long term period (100+ years).
Thanks George. Depreciation takes two forms: physical depreciation, the normal wear and tear resulting from use; and functional deprecation, or obsolescence, as newer construction methods, standards, and materials make older homes less desirable. No building is immune to both, but they may be resilient to different degrees. I suspect some older homes may behave partially like collectibles.
Love the episodes. Just wanted to note that I think the volume settings were much lower this episode than prior ones.
You mentioned that Eric Budish will be coming on the podcast at some point later in that year. Did that episode happen? I can't seem to find it
Ben, maybe you could add a pinned comment to the TH-cam video for RR #180, for future viewers who may not hear the correction about Canadian housing in this episode. You could also edit the description, although I think fewer people would notice that.
Can't wait to see LeVar Burton on the podcast. 😎
Is Actual Rents a potentially flawed variable to use in this model considering there was a recent change to rent control laws in Ontario in ~2018 followed by a material increase in rent since? This could be artificially lowering your Ontario User Cost / Actual Rent ratio. The average annual rent in Ontario increased 2.5% on average between 1992 and 2016. But has averaged around 5% from 2017 through 2021.
How does the model look if rents only increased 2.5% per year over the last few years instead of the 5%? Does that put your OUC/AC ratio higher than the 1 showed here? I also wonder if its possible for this model to be applied to a specific city or region like the GTA compared to more rural parts of Ontario which saw 50% to 100% increases during the pandemic.
Super awesome to see someone else have similar views to home ownership. I bought my home in my mid-20s and for years regretted it since nobody told me how much work it was to maintain it. Everyone was quick to tell me to buy a home to build equity, but I never heard once how much work would be involved to keep it up. Now that I've matured (and still in the same home), I can appreciate it a bit more, but there was a long period of time I should have probably rented. Good life lesson!
I like listening to your content 👍
If prices are biased upwards because of shorting costs, would it be even more biased upwards if overall interest rates increased?
Can we get a video explaining the increasingly high inflation rates and how to leverage this to maximize our wealth?
th-cam.com/video/65ug05JtgcY/w-d-xo.html
Not sure which podcast they were being referenced to but speaking for myself, I'm not in bitcoin because I think the market is inefficient. I'm in it because I think central banking monetary policy around fiat money is inefficient or bad or unsustainable or whichever word you want to use.
would be interesting to hear your guy's opionons on things like the magic formula, or the acquirers multiple. Are these good investment strategies that can beat the market, or is it only a thing that happened over a certain period. Or does the outperformance come as a result of factors.
Magic formula is value investing with a quality screen. Acquirers multiple is TEV/Earnings. That is again similar to value investing with a profitability screen. Both are likely explained by known factors.
you are the best
How do you read so much? I am trying to get back into it. Its hard to dedicate time to it.
a daily atomic habit of an hour per day.
what camera do you use?
rationalreminder.ca/equipment-list
So cute of them trying to apply logic to Ark projections.
Yeah crypto is... not for me. Real Vision made a separate channel for crypto because they got the same feedback. Some people are into stocks and crypto but many aren't, and those who aren't doesn't want to listen to even a single second about it.