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/biz/ - Business & Finance

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22884891 No.22884891 [Reply] [Original]

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

prove me wrong

>> No.22884994

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.

>> No.22884996

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

>> No.22885044

>>22884994
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

>> No.22885061

>>22884891
>depreciating asset
you're a fucking idiot keep your money in shitcoins

>> No.22885110

>>22885061
The house itself is a depreciating asset, the land is not

>> No.22885207

>>22884891
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

>> No.22885229

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

>> No.22885263

>>22885207
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%

>> No.22885361

>>22885263
I would rent it out myself. Im not paying a real estate cunt to manage it for me

>> No.22885434

>>22884891
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

>> No.22885460

>>22885361
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

>> No.22885525

>>22884891
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

>> No.22885580

>>22885525
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

>> No.22885612

>>22885460
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

>> No.22885752

>>22885612
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

>> No.22885768

>>22885460
>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

>> No.22885817

>>22885752
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

>> No.22885821

>>22885768
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

>> No.22885855

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).

>> No.22885856

>>22885817
>comparing a ranch house on 1 acres to a multimillion dollar estate

why are people here so dumb

>> No.22885858

seem like a lot of cope and seeth.

>> No.22885872

>>22885821
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

>> No.22885881

>>22885855
*paying down the principal

>> No.22885888

>>22884891
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.

>> No.22885906

>>22885856
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

>> No.22885911

>>22885872
>"diversification" when you don't own anything else

C O P E

>> No.22885947

>>22885906
>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

>> No.22885957

>>22885888
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

>> No.22885972

>>22885856
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

>> No.22885998

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...

>> No.22886004

>>22885911
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

>> No.22886007
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22886007

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.

>> No.22886016

>>22886004
dumb bot

>> No.22886041

>>22885972
THIS. Thank you Anon. This is what I was trying to explain to the cunt shill.

>> No.22886076

>>22885998
https://www.moneyunder30.com/why-your-house-is-not-an-investment

>A house can’t be an investment if you never plan to sell it

>> No.22886091

>>22886007
>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

>> No.22886183

>>22886076
but it is

you can borrow more money cheaper than ever, and loans get eaten up by inflation

>> No.22886206

>>22886183
retard alert

>> No.22886376

>just got marked as a pattern day trader

OY VEY SHUT HIM DOWN


So does that mean that I have to pay an extra kike tax? what if this is the only time I do it?

>> No.22886477

>>22885888
Shut the fuck up, you are so poor that you have no idea what you’re talking about

>> No.22886488

>>22886376
sorry boys wrong thread

>> No.22886585

>>22884891
its only ok as an investment if you can flip houses for a decent margin.

personally i think thats too much work involved with that. profit margins arent that high for most part.

i'd rather have my capital in the stock markets and let it grow that way.

>> No.22886640

>>22884891
Sure they only appreciate 5%. But you buy them with 4:1 leverage that cant be margin called. And they can also pay a 10+% dividend if you get the right deal, with somebody else paying your interest for you. And because the IRS has bought into the same "depreciation" meme just like, it is a ridiculously tax advantaged investment.

Evictions are honestly super rare, especially if you do your background checks like you should up front. Also, if you have treated a tenant well they will normally move out if they cant pay without causing you any problems. This happened to me with one tenant during COVID. She needed to move out early to something cheaper since her employer cut her hours. We agreed to a clean break where I just kept the deposit to cover the month of rent she was behind. No harm done.

>> No.22886687

tfw cheap condo master race

>> No.22886799

>>22885957
and when property taxes go up youll be paying a huge premium to not be living right next to someone else.

>> No.22886811

>>22886585
Bro if you had just 3 rental homes/apartments paying 2-3,000 a month, you would never have to work full time again

>> No.22886844

>>22886799
Rent can increase with property taxes