3 ms·

I guess it depends. I have two homes and I rent one out. It's almost paid off and I get $2,550 a month in rent for it. For me it's worthwhile and if I do thi

by ronnier 10y ago

I guess it depends. I have two homes and I rent one out. It's almost paid off and I get $2,550 a month in rent for it. For me it's worthwhile and if I do this a few more times I could potentially be close to financially independence.

akavi 10y ago
The question is what the opportunity cost of your investment is. How much money have you invested and how much time have you spent on the rental property? What would your returns have been had you invested that money and the money gained from using that time at some job in a stock portfolio instead? Now, it's possible, depending on where you are, that you got lucky and your real estate investments outperformed the market. But that's not always going to be the case, and it no more makes real estate a "good investment" than any other undiversified portfolio.
- 09bjb 10y ago
  Most real estate investors would take issue with "getting lucky" as the main factor in outperforming the market. Unlike knowing whether a stock in the public markets is over- or under-valued, knowing how to increase the value of your rental without breaking the bank doesn't require years of research, insider knowledge, and fair fortune. Real estate will, for the foreseeable future, provide market-beating yields to those that know how to use it and aren't afraid of the extra work it takes to maintain and run (as compared to holding a stock).
  - refurb 10y ago
    Lots of people say this same thing about bonds, stocks, gold. Maybe it's true, but it's rare for anyone to have consistently high returns.
    - 09bjb 10y ago
      No, savvy real estate investors with a lot of hard-won knowledge beat the market and, more importantly, achieve their returns consistently in a variety of economic climates. It's not based on luck but, like using a piece of farmland optimally, requires knowledge of how to best leverage the asset. Unlike traders/mutual fund managers/hedge funds, who have been shown time and again to be charlatans, the regulars in real estate prove the naysayers wrong year after year.
- antisthenes 10y ago
  The real question is - what is the opportunity cost of people who are forced to rent, because he owns rental properties. Because of the leeching rent-seeking class like him (who is probably in favor of current zoning), home ownership is becoming increasingly unaffordable for new entrants. Remember, housing/land is a zero-sum game, unless you're planning to move out to the middle of nowhere and live off the land and/or work remotely. I'm actually quite surprised there are so many people here who have gone the landlord route - it just shows how widespread this problem is. Taxes need to go way up on rental properties.

by ronnier 10y ago

akavi 10y ago

The question is what the opportunity cost of your investment is. How much money have you invested and how much time have you spent on the rental property? What would your returns have been had you invested that money and the money gained from using that time at some job in a stock portfolio instead? Now, it's possible, depending on where you are, that you got lucky and your real estate investments outperformed the market. But that's not always going to be the case, and it no more makes real estate a "good investment" than any other undiversified portfolio.

09bjb 10y ago
Most real estate investors would take issue with "getting lucky" as the main factor in outperforming the market. Unlike knowing whether a stock in the public markets is over- or under-valued, knowing how to increase the value of your rental without breaking the bank doesn't require years of research, insider knowledge, and fair fortune. Real estate will, for the foreseeable future, provide market-beating yields to those that know how to use it and aren't afraid of the extra work it takes to maintain and run (as compared to holding a stock).
- refurb 10y ago
  Lots of people say this same thing about bonds, stocks, gold. Maybe it's true, but it's rare for anyone to have consistently high returns.
  - 09bjb 10y ago
    No, savvy real estate investors with a lot of hard-won knowledge beat the market and, more importantly, achieve their returns consistently in a variety of economic climates. It's not based on luck but, like using a piece of farmland optimally, requires knowledge of how to best leverage the asset. Unlike traders/mutual fund managers/hedge funds, who have been shown time and again to be charlatans, the regulars in real estate prove the naysayers wrong year after year.
antisthenes 10y ago
The real question is - what is the opportunity cost of people who are forced to rent, because he owns rental properties. Because of the leeching rent-seeking class like him (who is probably in favor of current zoning), home ownership is becoming increasingly unaffordable for new entrants. Remember, housing/land is a zero-sum game, unless you're planning to move out to the middle of nowhere and live off the land and/or work remotely. I'm actually quite surprised there are so many people here who have gone the landlord route - it just shows how widespread this problem is. Taxes need to go way up on rental properties.