Stock Market (66 Viewers)
- Thread starter AFL_ITALIA
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Owning property is a liability unless it generates steady income. The American dream of owning a home as primary residence is a fraud made by banks for obvious reasons.
However, even now as an owner of multiple rental properties across states it’s not lucrative enough from a cash flow perspective despite housing being a necessity. It’s become less profitable all around bc of the direction of the macro economic scene
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Give me income generating assets any day and the. I’ll take dividend yield funds as well
However, even now as an owner of multiple rental properties across states it’s not lucrative enough from a cash flow perspective despite housing being a necessity. It’s become less profitable all around bc of the direction of the macro economic scene
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Give me income generating assets any day and the. I’ll take dividend yield funds as well
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The way REIT portfolios are constructed allow you to ride the waves of price fluctuations in residential and commercial RE. Very similar concept to index funds where your basket is is balanced enough so your exposure is limited. The price (barrier to entry) is elastic since the markets are correlated. The era of cheap money is temporarily on pause so you can probably see tightening RE assets held in REIT portfolios meaning less speculative/ risky acquisitions with a focus on generating cash flow to REIT LPs.
I got into e-REITS via Fundrise in late 2020 because of the inflated prices for acquiring rentals. I recommend investing in them for long term plays. All forms of REITs are rather illiquid so you will have to commit capital similar to if you were buying actual RE.
I got into e-REITS via Fundrise in late 2020 because of the inflated prices for acquiring rentals. I recommend investing in them for long term plays. All forms of REITs are rather illiquid so you will have to commit capital similar to if you were buying actual RE.
OP
Well if you are getting a 30 year mortgage you lucky if you break even. Besides the elephant in the room, interest, a combo of taxes maintenance and need to constantly upgrade to keep with endless supply will just eat away at any chance of making money. Additionally, if you buying an apartment, assessment only go up as building gets older, not to mention you are one bad neighbor away from hating your life. Buying makes sense when home prices were at about yearly salary times 2-3, and taxes were in the hundreds a year. Imo now it's just a big scam to keep you down.
OP
From a pure investment standpoint yes. I just don't like the whole "you'll own nothing and be happy" thing, seems way too insecure to have a base need fully in control of some other person.
The way I see it, you're going to be spending money on a place to live no matter what. Rents generally increase while that mortgage payment is going to be the same every year and then after those 30 years it goes away, just seems "safer" to me as I age by not having to contend with rising rent prices while on a fixed income.
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Nice man, congratulations. Residential or commercial?
The way I see it, you're going to be spending money on a place to live no matter what. Rents generally increase while that mortgage payment is going to be the same every year and then after those 30 years it goes away, just seems "safer" to me as I age by not having to contend with rising rent prices while on a fixed income.
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Nice man, congratulations. Residential or commercial?
There is something to be said for owning something tangible (i.e. property), just on a psychological level. Not that I do. Sometimes it feels like everything I own in life is numbers on a screen!
@AFL_ITALIA didn't you mention Kellogg the other day? Did you buy any? They are splitting into three different companies. Sometimes value can be unlocked that way.
@AFL_ITALIA didn't you mention Kellogg the other day? Did you buy any? They are splitting into three different companies. Sometimes value can be unlocked that way.
I hate it.Do you guys worry about adverse laws towards property owners under a Bernie Sanders (or someone more hardcore and younger than him) presidency?
Honestly I think the risk is low - most of that stuff has to be on the local level, and SCOTUS would benchslap anything too ridiculous. Just curious if it's even on your radar, as someone whose only "real estate investments" is land with oil, metals, or potash under it. I know f*ck all about residential real estate!
Honestly I think the risk is low - most of that stuff has to be on the local level, and SCOTUS would benchslap anything too ridiculous. Just curious if it's even on your radar, as someone whose only "real estate investments" is land with oil, metals, or potash under it. I know f*ck all about residential real estate!
