4 ms·
OK? I dont mean to be snarky but financial investment isn't necessarily the ultimate motivator for all things. Also fundamentally, we are talking rental proper
by apalmer 11y ago
OK? I dont mean to be snarky but financial investment isn't necessarily the ultimate motivator for all things.
Also fundamentally, we are talking rental property, rental income is a legitimate financial reason to buy rental property. Spend 5 million today, rent out for 500k a year, make your money back after 10 years, literally get money for nothing for every year after that... thats not a good enough financial reason?
basically real estate is a very slow moving ponzi scheme, perhaps one can argue its a ponzi scheme that cant fail as long as the human population continues to increase.
- refurb 11y agothats not a good enough financial reason? Your scenario (buy for $5M, rent for $500K/yr) actually sounds quite terrible. At even nominal interest rates you're probably paying 150% of the purchase price, so you won't breakeven until almost 15 years in. And with the time value of money, making a big investment now for $500K per year 15 years from now must be an absolutely awful return. I do see your point thought. There is nothing wrong with buying a house because you want it. However, that's not why most people buy houses (at least in the US). There is the pervasive perception that housing is a "good investment".