can we talk about how shit residential real estate is an ""investment""
I feel like the only reason people see it as anything but shit is because of boomers and white trash blue collar non-tradesperson types(think, mechanic, flooring installers, walmart associates) who think they're rich for renting our their second 45k home to other white trash
let's look at the facts
>homes themselves are a depreciating asset >need constant maintenance which costs thousands and sometimes requires specialty tradespersons to work on >homes only go up on average 5% per year which is literally less than the stock market as a whole >extremely illiquid asset >12% realtor commission fees + tip when you want to sell
Yeah outside of a few exceptions like the bay area(the exception does not define the rule) you are literally better off just buying stocks which are 1000% more liquid of an asset(can be sold instantly), have higher returns, and don't fuck you with sellers fees. on top of that now that the fed is pumping stocks its just free money at this point
You're right that it's shit investment. It's great if you look at it as a loan. The moment you buy a house, you get a lot of money that you can access for cheap.
Josiah Reyes
oh yeah I forgot >renting is actually a huge PITA as most renters are animals >residential renters rights are very strong and evicting them is a very emotionally and physically draining process
commercial real estate on the other hand CAN be good, but most people are too poorfag to ever be able to own a strip mall in the first place, so there's no point in talking about that here
Robert Bell
You can only get a home equity loan/reverse mortage on the dollar amount that you actually own
i.e you buy a 150k house with 5% down, you don't get to home-equity loan the full 150k
Liam Robinson
>depreciating asset you're a fucking idiot keep your money in shitcoins
Matthew Hill
The house itself is a depreciating asset, the land is not
Noah Thomas
I can make 36,000 a year from a residential home that costs 420,000 usd. Thats a 7.5% return. Its also safer than equities. Real estate is always a good hedge to hold in your portfolio
Brayden Johnson
While I'm on the subject, I figure I'd discuss another minefield of residential real estate that most people aren't aware of
>most contractors are literal crooks Unless you can DIY most of the renovating work yourself, you have to deal with the minefield that is american contracting. Most contractors are crooks, with the good ones being the exception
Contractors are almost all scammers and the field is full of scams like >bro give me 50% down before I do any work >nah bro we don't need a written contract >yes trust me I'm licensed and bonded and have insurance >you pay the contractor, he doesn't pay his subcontractors and his subcontractors sue you/put a lien on your house
In reality, most contractors will just take your money and run, leaving you with no recourse other than suing, and if they fuck your house up and you don't pay them, they can put a mechanics lien on your house(though liens are easy to remove, lien abuse is common)
the entire industry is literal crooks full of people who want to either 1. take your downpayment and run or 2. do shit work and expect to be paid for it
your best option is just never dealing with a contractor to do anything unless it's something like electrical work which you absolutely can't do yourself
just remember that 95% of contractors are high school dropouts/fuckups and anyone can call themselves a builder with no degree
Justin Collins
It's not a 7.5% return when you factor in selling fees/realtor commissions which are astronomical
7.5% return is also not normal and the average is 5%
Parker Flores
I would rent it out myself. Im not paying a real estate cunt to manage it for me
Gabriel Davis
It's just a question of whether you can make profit every year after maintenance and mortgage on the rent.
Your real appreciation is probably ~3-4% annually after maintenance costs unless you bought a lemon, but if you can rent it out and pay maintenance with the rent and claw your missing 1-2% back or more then it's fine. After 3-5 years you can easily hike rent and be making net profit over the 5%. By year 15-20 or so you should have been able to pay the home off entirely via your rent profits and now are making probably 5% in pure profit on rent plus the 5% appreciation on the land. You can now take the entirety of the profit, which will be tens of thousands of dollars, and re-invest as you see fit. This could be expediting full ownership on another property, or it could be crypto, or whatever the fuck you want.
It's not the fastest way but it's pretty consistent in its ability to make you very wealthy. The only real downside is having to be a landlord. Tenants can be shit to deal with. Don't ever buy a shithole property because you will be renting to shithole tenants. Buy a nice property valued at $300,000 or higher so that the income needed for the renter puts them in a socioeconomic bracket where they will be respectable tenants. Still not a guarantee they'll be a GREAT tenant but you hedge your risk.
>t. started buying properties at 23 and now at 35 own 9 properties valued at over $5MM and make a healthy six figure salary every year as a landlord
Jonathan Gonzalez
First of all >3k rent on 420k home No Second of all >Not factoring in repairs, utilities and bills This is why only white trash people rent homes and smart money stays away from residential real estate. Have you ever seen a Jew rent out a house? no, they own strip malls and plazas
Jose Wilson
This is how I know 4dhan biz is fucking retarded. They believe that renting is superior. You are all fucking retarded dumb shits. Suck my balls. My bags have more then doubled and all I had to do was put 10% down in less then 5 years. COPE
Grayson Anderson
This is how I know you are retarded because this post isn't about renting vs owning, it's about investing in residential real estate to make money vs smarter options like stocks
Samuel Jones
Evenone that is rich I knows owns real estate, including commercial. It’s an important part of any portfolio. This anti rea estate propaganda u bet 100% is Jewish subversion
Ethan Ross
There is a big difference between owning a mansion in hollywood vs owning some white trash ranch in missouri, 99% of real estate "investors" are the latter
What can you not understand about location, location, location
Nolan Williams
>First of all You're a dumbass
>Bought house in 2016 for 420k. >Currently worth 500k >Can easily get 3k a month because of location
Seethe crypto cuck
Blake Turner
Anyone with wealth owns some sort of farmland or ranch in a rural area. The Cuckshed in the Hollywood hills are distractions for show. Look at kanye west, he bought a massive 20 million dollar ranch in the middle of fucking no where Wyoming
Nathan Rodriguez
you could have put that 420k into stocks and made much more while also having a more liquid asset retard
good luck getting cucked by sellers fees though
Blake Gray
It's definitely not retarded. I'll be retired at 40 thanks to real estate.
My house is worth almost twice as much since 2013. >well SPY has gone up at least twice since 2013! Yes, so why would I invest in real estate again back in 2013? Because I've been paying down the interest on the loan since then. Instead of money going to a landlord (flushing my money down the toilet), I've invested it into my house and I own more of that very large asset now. I'm paying myself. I put down 80k back in 2013. If I sold my house today I would have made conservatively 250k in profit, compared to 160k if I would have invested in stocks back in 2013.
So obviously timing is important. But house prices tend to go up. 401k's are underrated, it's prudent to give as much as you can (compounding interest is no joke).
Austin Martin
>comparing a ranch house on 1 acres to a multimillion dollar estate
why are people here so dumb
Charles Miller
seem like a lot of cope and seeth.
Adrian Rodriguez
no shit you faggot. I didn't want to live with my mom until I was 30 like a fucking loser. Now I have a real estate investment worth 80,000 more than what I paid for it, in addition to my equities that I invest in monthly.
Its called diversification. Seethe harder
Tyler Foster
*paying down the principal
Joseph Thompson
american houses are fucking trash. literal plywood and sheetrock being held together by cheap nails, or fucking double wides. anywhere in america you can hear your neighbor taking a piss and thats supposed to be normal, its fucking ridiculous.
Jace Russell
That was not what I meant. I meant that rich folk dont only have one hollywood mansion, they buy rural farms in bumfuck nowhere that no body knows about. You fucking NPC retard
Zachary Rogers
>"diversification" when you don't own anything else
C O P E
Evan Hernandez
>they buy rural farms in bumfuck nowhere that no body knows about How is this relevant to my thread at all you dumb soulless calcified pineal gland BOT
Logan Ramirez
Can confirm, Thats why its not about building material, its about location nigga. Good Location will always give nice returns on investment. Regardless of what the house is made out of
Nathan Robinson
Try 100’s or 1000’s of acres of pristine farm land situated in around a glorious natural vista vs a 10 million dollar mansion on a 1/4 acre lot in a city full of smog and pavement apes only a couple blocks down the road. I 100% know you are Jewish with your hate against nature and farming and love for the shithole that is a city
Chase Perez
so you gonna live in a stock? You gonna rent for your whole life never feeling having a home? You think any women want to start a family like that? You don't realize that there is more to life than maximizing investments?
zoomers...
Jayden Sanchez
you are such a stupid little faggot. You can't even argue. I fried you on all points. You clearly don't own real estate and you are clearly poor. You crypto cucks are the scourge of the earth. Not everyone wants to invest real money into fake internet meme coins
Nicholas Cooper
I don't even bother trying to convince anybody in these threads anymore. I don't want to persuade you, I don't want competition.
>A house can’t be an investment if you never plan to sell it
William Richardson
>competition These fags are all broke holding 1000 dollars worth of Link waiting for it to go to 5,000. They live in a sad fantasy world where anything that is not crypto is attacked as a bad investment
Charles Russell
but it is
you can borrow more money cheaper than ever, and loans get eaten up by inflation
