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In the USA the surest and safest way to do this is to follow the American Dream... ie: buy a house. Specifically, buy a multi-family in a constantly in-demand a
by anonu 10y ago
In the USA the surest and safest way to do this is to follow the American Dream... ie: buy a house. Specifically, buy a multi-family in a constantly in-demand area / big city. The devil is in the details on the economics of all this... how much you put down vs how much you borrow, etc.. etc... But within 30 years (assuming you get a 30-year mortgage) you will certainly be financially independent. The key is to manage this wisely and ensure you are in a location where you can get near 0% vacancy. Why am I so sure this will work? Because the US economy is designed for this... it's designed to massively leverage yourself up against the collateral of the home. The tax code is designed to basically writeoff your expenses - and even more so if it is your primary residence.
- vegasje 10y agoAny areas specifically come to mind?
- anonu 10y agoAustin, Portland. anywhere near a large university. university enrollment is counter-cyclical to the economy.
- cylinder 10y agoYou deduct business interest and expenses from a business too. The difference is banks will loan you 5:1 on a multifamily but will not for a non-real estate small business. A multifamily is just a small business.
- mywittyname 10y agoThe downside is that you need to be a landlord and this can be a risky proposition. You have to navigate a potential mine-field of tenant friendly regulations and pray that a tenant doesn't destroy your property.