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I guess on paper that's true. But management and opportunity costs are certainly not insignificant in that case. Property management services typically charge
by iamthepieman 11y ago
I guess on paper that's true. But management and opportunity costs are certainly not insignificant in that case.
Property management services typically charge 5-7% off the top plus a new tenant/lease renewal fee that varies by market.
Unless the amount of capital I have invested in my home is small compared to my total assets (it's not) then having that much money tied up in a non-liquid asset is certainly not contributing to my personal flexibility.
- pixl97 11y agoYep, PC86 didn't take in effect the 'risk' factor. Some renters are highly destructive to property and you will never recoup losses from them. A significant policy change by the government can change the metrics that home buying is a better choice for your renters. A significant change in local behavior makes that neighborhood worthless to rent from.