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/biz/ - Business & Finance

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58116918 No.58116918 [Reply] [Original]

>investing in real estate
>buying a house
>fixing it up
>paying maintenance on it
>pay property taxes on it
>make sure no homeless people go shit in it if you're not renting it out
>if you are renting it out try to find tenants who won't fuck your shit up 24/7
>pay for a property management company
>if you dont pay for a property management company be on call 24/7 to deal with your aforementioned tenants
>hope it appreciates over the several years you deal with holding it
>hope you can sell it for above your cost
>possibly pay tax on selling it

>investing in stocks
>buy vtwax/vtsax
>pay tax on it when you cash out

Why do people "invest in real estate" again

>> No.58117448

>>58116918
i would fuck this alien

>> No.58117453

>>58116918
most people who "invest" in real estate obtain it either by extortion or fraud

it's also worth investing if you wish to make a nice living environment e.g. buy up all property around your house and rent/lease it to nice people you like to have as neighbors

your logic doesn't apply to either of those which just proves that land is not something to mess around with.

>> No.58117508

>>58116918
Because it gets memed into them by their parents, their friends, and their whole culture. (At least if they're British, Canadian, American, Australian, Kiwi, Chinese, etc.)

Another reason is that they think the return (which might include tax deductions, leverage, etc.) is high enough to compensate for all the hassle.

>> No.58117619

Well its a landlord market here atm in Australia

100+ people showing up to rent a town-house, Its got so bad that they even "auction" the rental price.

Say the rental is listed at $450-500/week

People will literally have a bidding war to rent it and you'll see the $450-500 rental goto $600-650/week

Shit is crazy. Its becoming the norm to live with your parents well into your late 20s now.

>> No.58117665

>>58116918
Some generations got rugged by the stock market in the 1900s. This has left a cultural stain, by which people noe consider houses "safe". Part of this is that a house seems intrinsically valuable, it is obvious what it is and does, and it is broadly a very useful investment in the eyes of a layperson.

"Investments" are by comparison shrouded in misinformation, confusion, contrsdictory advice, and this nebulous idea of risk. Now, if you've been paying attention to markets for even 5 years then you'll have come to understand some of these things, but most dont even find it interesting.

Also, women love houses. They love dreaming up their idillic interior and garden. A Vanguard fund just isnt as exciting - even if it is the more sensible place to park your capital.

My parents are so overexposed to housing that I am considering deliberately not buying a house just to try and diversify the family portfolio.

>> No.58117833

>>58116918
because, even with all those problems, you still can get someone else to pay for your house/apartment? I fucking hate landlords (lowly rentier scum), but they have a point: at least you get something tangible at the end of the day, not just "money".

>> No.58117882
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58117882

>>58117448

>> No.58117889

>>58117833

It's not worth the headache only owning a couple rentals. Either go big or don't do it at all.

>> No.58118019

because they make their money in the buying and the selling. the price of real estate has gone up reliably.

>> No.58118058

ill take a house easy once i can afford one, its the type of investment if worst happens i can just live in it, more likely i can charge rent or sell it for more in a few years

>> No.58118252

>>58116918
You can leverage real estate, you cannot ETFs easier to scale and get rich faster.
Your tenant is paying your mortgage.
You can do tax avoidance by putting into LLC and paying your kids a salary.

When you invest in real estate YOU own the deed to your house. When you invest in ETFs, some jew owns your money and stocks.

>> No.58118411
File: 35 KB, 1056x381, closing costs.png [View same] [iqdb] [saucenao] [google]
58118411

>>58116918
You don't pay cash for real estate. You buy with as little money down as possible.

The property appreciates, interest rates go down, you refinance, and then you rent it out.

>> No.58118446

>>58116918
i gotta be real with you op, i just stopped to read for the fucking picture

>>58117448
same

but on why people invest into real estate? idk they probably dont know about crypto how btc related tokens like brc20 are better for just holding, back then, investing into real estate was the real deal