Why do I hear everyone talk about Real Estate as THE way to gain wealth. I think its the worst way to get rich-
>dealing with shitty tenants, you become their bitch in dealing with their tiny problems, hiring someone to manage it for you is 10% of the rent >property taxes, strata fees on top of that mortgage >often the rent you charge is not enough to cover all the costs so you become a pay pig to your tenant >Often need to wait 8+ years for the value to increase enough to make a profit >value is not guaranteed to increase, especially if one of your tenants do something like, hang himself or blows out his brains. you're fucked. >If you want to sell it, you need to pay taxes on the gains that you make and is a long arduous process that takes 1/2 a year to process along with many other fees.
Why the fuck to people keep talking about Real Estate then? Why not just invest in stocks, bonds and mutual funds?
because real estate even even more so land specifically is the only thing that actually has value, land is limited, sotcks are fucking useless IOUs, unless they pay dividends The jews want to own all the real estate and land in the world so everyone else is forced to become their rentcuck bitch, so unless you think we will colonize Mars soon or tha the earth is flat and there is more land behind the ice wall you should accumulate as much land and rental properties as you can
Robert Sanders
real estate is a long game which is why it doens't get much attention from when lambo retards on biz.
Anyone who has held property through multiple decades is set financially.
compounding
Nathan Price
>Anyone who has held property through multiple decades is set financially.
How so? My boomer parents have properties, they are both nearing 70 and they're still working off to pay back the mortgages. Sure they are millionaires in terms of wealth, but I don't see the point of all this wealth if it doesn't pay them (the rental money doesnt cover all costs).
I just see the mistakes my parents made in taking out multiple mortgages in their lifetimes and seeing them keep working into their late 60's just makes me want to avoid the same problems.
Nathan Lee
>I don't see the point of all this wealth if it doesn't pay them
>>often the rent you charge is not enough to cover all the costs so you become a pay pig to your tenant
Then either charge more rent or do your homework in the first place and not invest in that property
Bentley Jackson
You usually pass all the work to the agencies. They handle the paperwork and inspect the house twice a year to see if everything is in order. You usually need to take care of maintenance if the house is old but at least it's a reliable source of income. There's no cash machine where you press a button and automatically makes you money.
Jeremiah Miller
>I just see the mistakes my parents made in taking out multiple mortgages in their lifetimes
basically answered your own question? they could have used that equity over a 40 year period to buy dozens of investment property and have retired years ago on rental income.
Adam Thomas
real estate is insanely profitable, especially when you are into development. It's the best asset out there.
Benjamin Sanders
>Shitty tenants
An empty house is better than bad tenants. Period.
>often the rent you charge is not enough to cover all the costs so you become a pay pig to your tenant
You are doing it poorly if this is the case. Easiest passive income earner going.
>Often need to wait 8+ years for the value to increase enough to make a profit
It's an investment. It's a purchase to consolidate your wealth and earn passive income. It is not for flipping a profit unless you intend to fix a house up, which is a great way of making money.
Matthew Russell
That's because you're buying the wrong property and renting to nigger trashballs. That isn't what's implied by "buy property ". Idiot.
You might make some money, but every year property tax is going to eat into your potential profits, and even hinder your daily life, as its not something you can just ignore until the sale of the property in a few decades.
Also you have tons of uncontrollable variables that can be costly should they arise.
All of these are preventable: buy the right house, in the right area, that accommodates the right clientele. You can pick your tenants you know. Buy house you live near. Don't buy a house where it floods. It's not hard.
Jaxson Mitchell
>70 and worth millions in terms of wealth >still working to pay back mortgages >rent money doesnt cover their costs
sounds like they are undercharging for rent or stuck with rentals that are falling apart. most likely renting to family or friends at under value and probably let the occasional monthly payment slip upon hearing a woo is me story.
i can see how rel-estate could be difficult though. >requires large investment of 20% equity to get loan for rental >50% of money received each month goes to mortgage interest/insurance/general maintenance >25% goes to equity portion of mortgage >25% you keep as profit is taxed and he need to keep some of this in savings for big expenses like roof/deck/AC replacement >average 90% occupancy for most rentals >run the chance of someone destroying your investment >most states have horrible laws that favor renters over landlords which could leave you with a non-paying renter on your property for months at a time
honestly seems like a gamble
Carson Jackson
That's when airbnb might become a more demanding but sure way to make money. In my area, and for the apartment i own, i could make the same gross income in ten days withg airbnb as in a month with regular lending (and all the risks associated with it that you mentionned)
Dominic Cook
basically because land is a real asset, buildings are depreciable which reduces taxable income, rent generation provides stable cash flow, govt offers incentives to provide certain types of units or units in certain areas (accelerated depreciation, etc), developers can pretty easily lever up via outside cash which generates a high ROE, most rent is pegged to CPI so rental income grows with inflation... that said, I'm not a huge fan of real estate primarily because rent is taxed as ordinary income, but those are some of the main reasons
Jaxson Butler
REIT Master race here to remind you that there is a better way.
>Profit off real estate >No need to deal with real estate
Christopher Gray
Can anyone else confirm?
Cameron King
I just checked, dividends are not qualified...if you are going to use REITs and not physical real estate, why not just put that money into index funds like VTSAX instead?
Adrian Garcia
I believe in an inevitable societal collapse and war in several countries. Under these circumstances property ownership is a liability. Additionally, property ownership makes you an immobile tax serf to the statd.
Jacob Long
My three houses are all that keep my afloat, desu. The mortgages amount to less than 25% of the rental income, and other expenses are really minimal.
My time involvement is at most a few hrs per month, and I let to local students who are generally well behaved and are guaranteed to leave after two years.
Fucking brilliant scam, I just wish I had got into it sooner.
Levi Flores
It was up until now, but the property prices are so high compared to wages in western countries it just doesn't seem feasible for the prices to double or triple again from here
Juan James
>mortgages amount to less than 25% of the rental income This is probably the key part here. If you're trying to make money off of appreciation instead of rental income then you're in dangerous territory.
Colton Ramirez
>dealing with shitty tenants You go with a middle man, but not an agency. >property taxes, mortgage Rich people buy into land and property. They do not need mortgages lmao get lost. >8+ years for the value to increase Yes. This is called investing. >value is not guaranteed to increase Tenant properties go up since 2000 BC. >If you want to sell it, you need to pay taxes on the gains that you make Not at all. Look up stock swaps. >process that takes 1/2 a year This is your job you dumbfuck. Your occupation. If you want something that generates money instantly for minimum to no effort. Plan a fucking Bank heist.
Why the assumption that property is residential. Fuck residential with all their anal issues. The real money buys office and comercial property. Cause most the time you have no responsibility in the upkeep of the office or store etc. Most stores will renovate for their store...you just need to rent an empty space.
