Hi /biz

Buying real estate in 2018 is like buying BTC at 19,980$

you are 26 and yet too stupid to invest, read more and gtfo of Jow Forums

thanks for the info

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you sound like a butthurt boomer who lost it all in crypto

why don't you share your wisdom on why RE is a bad investment or find a different thread. this is probably the only place you'll get (you)'s so be nice

Doesn't your country have negative gearing boo?
>not cashing in with lucrative land developments sold of to people like op

can you explain how you make money buying and selling websites?

is it just buying the domain name and hoping someone wants to buy it from you at a higher price?

what is your overhead in this kind of business?

Op, do your research, talk to professionals and don't rush.
Don't buy a family home if the unit market is where its at in that area etc

fpbp, also buy gvt

BTW, my investment strategy would not be so much on appreciation, but on cash flow. I would be buying rental properties and using a property manager, hopefully generating 200-400$ a month after expenses.

Obviously properties that appreciate are a better investment but as long as you are paying the mortgage note you are putting equity into property and making money off it.

thanks. im doing a lot of research. I came here for alternate viewpoints. I know /biz is full of retards but there are occasional diamond in the rough type opinions here. at least brutally honest ones too.

if hes just starting out he may not have enough to start out with multi senpai unit but yes that is the ideal investment

Buy a small condo in a place 26 year olds like to live. Buy small enough that you can easily handle the mortgage. Make sure it isnt the biggest or smallest in the area. Get a mortgage on it as your primary residence. Live there a bit, fix it up. When you are making 75k move and rent it. The rent might not cover the mortgage/taxes fully. But on the good side you wont be getting raped by an investment realestate loan. In a few years rents will go up and hopefully cover your mortgage and more.

Unless you have millions to invest, or want to become a full slum lord, dont expect a massive passive income starting out. Having a mortgage paid for by some one else on a property growing in value is already a win.

Also, because you have a real job, dont expect to be able to depreciate a property or do any of the other cool tax shit that realestate investors can. Your actual income will preclude you from all that.

>2018
>"rents will go up"

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one thing i hear is that rent stays consistent with inflation. people always need a place to live.

i wouldn't be investing in luxury units in expensive areas. i wouldn't be a slumlord either. im looking at units priced 50k-100k a unit.

t. virgin

Did you read his post about his work schedule? He works at this every single day, including weekends. All for $10,000/month after 10 years of building this up. That sounds fucking terrible and stressful. I make more wagecucking for 40 hours a week.

have you read his posts? He is a completely stupid zoomer, he s going to buy an overvalued condo from a 50y/o boomer who will retire in Thailand

moved my post here:

yeah, definitely the biggest downside is the work you have to put in. I am a new lawyer so i will already have crazy hours with my real job. On the other hand, I know more about property law than the average new investor so this seems a more synergistic side gig than most for me.

still, if i can't beat a vanguard, what's the point of all the work you know

Shit like this is what keeps me out of real estate. I've talked to and watched landlords and it's not all games and easy money. It's a pain in the ass that never ends and you have to deal with the general public.
Disgusting.

Anything can happen, real estate isnt a commodity. Rent got a really nice bump when the economy tanked in 2008. No one could or would buy a house.
My properties crossed over into monthly profitability in 2010-2012.

Right.

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Dunno if youre in some pageet teir muckhole but find someone who advises in re wealth creation get them to do portfolio modeling of all your options.

You looking for rental yeild
Captail gains or wud?

Also buy a principal residence first. You in aust?

looking for cash flow. that is, monthly income from the properties exceeds all expenses.

I would reinvest all profits from the properties back into the business to buy more properties until my monthly income was at a decent level.

Im in USA

>we are in an infinite uptrend

imagine what it takes for rent prices to go down.

there has to be an abundance of places to live, or a shortage of people to rent to. that's it.

Do you have enough savings to easily hold it all together if you go without a tennant? You're on the goods man, building equity in an investment then you can borrow against the first and get another. Rinse and repeat. Jan sommers has some good books

You will need to buy your properties outright. Which usually means slumlord territory for your average 26 year old. Mortgages on investment/non-primary residences are rapey unless you have millions in the bank. Also you wont be able to take advantage of any of the tax breaks because of your primary job. A slum lord I know with a real job, put his shit holes in his retired parents name.

Hur whats population growth muh cryptos muh day trading shitcoins lol fuck bricks and motar epic dude weed lamo

Gee whats the interest rates over in seppoland. Its easier than that here and our losses are tax deductible off our overall income from main job lol

>Buy a block of land
>Build 2 homez
>subdivide

????

If you are able to do 5% in one year (minus the inflation) with real estate, I will eat my dick on live

If you are so into real estate you can just buy into a Real Estate ETF like IYR or trade long-term contracts on it.

No, not yet. You're right though, savings are crucial. Ideally I would have 3-4 months operating expenses for each unit in reserve.

One way to protect against that is to factor in vacancy in your projections when deciding whether to buy a specific property. The model i would follow suggests assuming 8% vacancy

implying you can beat the inflation with a RE ETF

OH NO NO NO NO

AHAHAHAHHAHAHHAHAHAHAHAAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHAHAHAHA

Its possible, however you're kind of missing the point. Why would banks give big fuck off mortgages out if they didnt want to own house titles when people go rupt

Yeah id also pretend youre on 50k

There are several different ways sites earn money and it usually depends on the type of site.
Advertising is by far the most notable way. For example Google Adwords
Direct advertising - (working with an actual company) rather than an ad network.
Affiliate marketing - example being you might review a product provide a link for people to use and if they buy you get a portion of the sale.
Service based sites - such as offering services for design or programming.
E commerce sites - such as buying a FBA business.
Subscription based site - varies but something that requires paying for a membership each month such as Wall Street Journal.
Hosting will be your only likely expense. Which isn't very much like $10 to $50 . Expenses will be more if you buy advertising for say Facebook to drive more traffic.

Me and a friend are setting up a new house from scratch close to the city centre, Total cost is 600.000$. Real estate brokers have already given us an estimate worth of 800.000$ (we built in a condo which they buyers can rent out)

good advice, thanks. I have no problem living below my means, i am very fortunate in that I have no debt and low expenses right now. want to keep it that way.

Should have done 8

>there has to be an abundance of places to live
this is the case though
there's way more homes than buyers because of the obscene cost

This. Depending on location and if theres no rocks or bluemud in the soil

we are both young and have limited funds, so this is our first project

If you and your friend each walk away with 100k this fast, that's a great deal. i suppose you could make some short term gains on rent and hope to sell it for the same amount later, so props to you for having the balls to walk away from a sure thing.

thats the thing, in my country theres a law which allows you to sell tax free if you life there for one year. so im trying to convince my friend to rent out the condo and live there one year.
Otherwise we tax 24% of profits

Making $60k as a new lawyer? Holy shit, get a load of this cuck everyone. Then on top of it you want to buy the definition of a boomer asset class? Just kys.

Yeah that's nice and all. Now how about you go shove it up your ass?

lmao. yeah man, what can i say. its a tough market out there if you aren't top of your class. I didn't go to a meme school though and i graduated with no debt and a job. there are a lot worse positions to be in, trust me.

i actually feel lucky since i have a profession, my earning potential will only go up from here as i gain experience, and i have an education that makes it easier to get involved in side businesses like topic related.

>I've crunched numbers on a few sites I was interested in and some would pay themselves off in 8 to 12 months

Then you're probably looking at shit websites.

>t. triggered boomer

At least you're working as an actual attorney I guess. Although the market rate for T14 grads is $180k (and moving to $190k now), so that has to be a little depressing. Really you should stay far away from real estate though given the hassle and the fact that we're in a bubble. Throw whatever money into a 401k instead and you'll be better off.

yeah i didn't go T14, grades and LSAT weren't good enough. I went to a state school knowing it would be cheap and I would at least have a job upon graduating. My school is competitive in the region and it was a good career choice for me personally. Poli Sci degrees aren't good for anything else lol.

yeah i'd probably max out my employer matching before investing in anything else.

Lawyers are quickly approaching a meme degree. Also there is a shit-ton of them standing around. 60k is pretty good. I have heard lawyer slaving at an hourly rate just for the opportunity to get a fixed salary of 50-70k.
>I read and write gud
this was impressive 100 years ago.

this. you should only go to law school if your school has a good job placement rate. they are ranked partially on this metric now.

you will only make the big bucks starting out if you place in the top 10-20% of your class, and even then it depends on the school.

I knew what I was getting into before, not everybody does. some people still think a law degree is a golden ticket to the upper middle class but its not the case.

i actually got in at a good time. when i applied, the number of nation-wide applications was really low, and the economy is performing nicely now so people are hiring better.

2008 and the years following was murder - very hard to find a job. lawyer employment tends to follow the economy, businesses stop paying lawyers to sue each other when things are tight. (Unless you are in bankruptcy or real estate, foreclosures etc...)

I bought a house 2 years and this year they just upped my taxes in my neighborhood by 280$ a fucking month. BE CAREFUL and BE FRUGAL I bought 1/3 of what they said I was pre approved for and I put 20% and I still have regrets on my monthly payments now.

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damn sorry to hear that user. where do you live?