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/biz/ - Business & Finance


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14028031 No.14028031 [Reply] [Original]

I'm looking trough all the info and charts and for the most part real estate always seems to generate highest returns.
It also comes as relatively low risk asset. Isn't it suppose to be high risk - high return v low risk - low returns?

Property itself price might go up/down nobody knows, so no point to debate this.
People seems to do quite well by just buying second property and renting it out with rent generating higher or equal payments to cover the mortgage.

So constantly invest part of your salary in property or some re index fund and in x years ur set for live ?

>> No.14028057

>>14028031
It's not. You will only make money by renting out the property otherwise you get raped by the property tax which ends up being more than any increase in value 99.5% of the time.

>> No.14028071

>>14028057
>renting makes money
Not really. With all the taxes, renovations, modernizations and regulations one can be happy to end with 0 or at best a monthly gain like being a half time wage cuck

>> No.14028136

>>14028031
Think about how much time it takes to sell your gaming console for a good price and how much bullshit you have to go through to finally see cash.
Multiply that by the thousands and you may imagine what it's like trying to buy, sell, and rent real estate.

I realized something similar recently when trying to sell my video game collection, before I ended up giving it away to a neighbor kid. 5-10 bucks per game, but listing the games, making photos, negotiating, meeting up just for the other party not to show up, etc., it just wasn't worth the time it takes.

I'm assuming real estate is worth the time in the end, but don't underestimate just how much time it takes.

>> No.14028177

>>14028071
That's not true. There's plenty of money to be made with rental properties especially if you keep building up and reinvesting your profits into new properties to rent.

>> No.14028192

Because niggers keep moving into countries and occupying the low rent housing. This pushes the price of everything else up

>> No.14028374
File: 494 KB, 387x305, 1495164064547.gif [View same] [iqdb] [saucenao] [google]
14028374

>>14028031
Because it has lower inflation than fiat ,since the gold standard was abandoned the price of properties has been growing non stop because fiat has 2% inflation while the inflation of real estate must be around 0.5%

In non retarded terms currency is created faster than housing due to deficits and debt as a result relative to those fiat currencies housing is costing more and more.

Once crypto goes bellow fiat levels inflation next year(btc and bch) you will see the same shit happening when proportionally the ammount of fiat created is bigger than crypto.

Both btc and bch will have inflation rates around 1,5% while fiat is having a reported rate of 2% so relative to fiat crypto will be mooning constantly just like housing.

I just give you the ultimate redpill if you understand it you will realize the magnitude of the next year halving.

It will have society changing effects for real btc and bch will be the top winers and litecoin and monero will have a massive bullrun too two years after when their inflation levels also become lower than fiat.

>> No.14028383

>>14028177
>Buy more of a shitty Boomer investments
No thanks, that is like doubling your btc investment at 20K, might pay off in 2 to 3 Generations but you will die in poverty

>> No.14028439

>>14028383
Rent is usually around 1% of the properties value. Getting a safe 1% monthly return on your money is pretty good. You could make more on crypto but you are taking a much bigger risk.

>> No.14028541
File: 29 KB, 400x252, c7bdc5dc4a85230f298590ca10e13360a70520ea9c55ea596819a04332d4a368.jpg [View same] [iqdb] [saucenao] [google]
14028541

>>14028031
It's because the land is increasing in value. The buildings are staying the same value. Do some research into the ideas of Henry George.

>> No.14028549

>>14028177
Checked. Also check out biggerpockets for anyone looking to do this shit. My buddy started three years ago and already has a ton of properties that are all cash flow positive, I’m looking to do the same once I pay off more debt.

>> No.14028565
File: 610 KB, 900x641, a460d3673bf8f912bf3629a5cbfce070c25bdd13b4c377b5412ccd59f7d3ec77.gif [View same] [iqdb] [saucenao] [google]
14028565

>>14028031
The 3 factors of production are land, labor and capital. You can make more labor, you can make more capital... But you can't make more land. This is why all increases in the productivity of an economy will accrue to land value in the long run.

>> No.14028612

>>14028071
You can use rental properties to shave away taxes elsewhere though.

>> No.14028674

>>14028565
Isn’t that gif just keeping up with inflation?