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Tell me about this 10% per year risk free investment? Owning S&P historically has returned 8% annual, by no means is risk free.
by nodesocket 8y ago
Tell me about this 10% per year risk free investment? Owning S&P historically has returned 8% annual, by no means is risk free.
- jedberg 8y agoReal estate. There are plenty of multi-unit dwellings in the country with a 10% IRR. If you have a few million cash to buy one, you'll get 10% a year on the rent fairly risk free, depending on the market.
- timavr 8y agoFamily for 30 years in rental property business. Anything which involves rent is by far not risk free. Very cycle driven, heavy on litigation and management has to be perfect to make returns.
- jedberg 8y agoI’ve been doing real estate for about 25 years and haven’t seen much risk at all. Biggest risks have been vacancy and maintenance. Vacancy is solved by setting the right rent and maintenance is a 10% reserve fund. Also I said “almost risk free”. :)
- kgwgk 8y agoI don’t know what country you are talking about, but in many places there was a huge decline in real estate prices one decade ago. That would seem a big risk...
- charlesdm 8y agoReal estate is also illiquid. Would you prefer 10% IRR in property, or 8% IRR in the public market? I would personally pick the second.
- charlesdm 8y agoUse some moderate leverage I guess, i.e. 130% of capital.