3 ms·

Put your money in real estate. Our political system is unable/unwilling to address housing needs. Home owners vote for whatever it takes to increase prices. Re

Put your money in real estate. Our political system is unable/unwilling to address housing needs. Home owners vote for whatever it takes to increase prices. Renters and young people looking to buy their first homes don't have as much political clout. The reality of the situation is sad but the results are clear!

xwdv 5y ago
Real estate is one of the worst asset classes right now. If anything is due for a crash it’s real estate prices. And the amount of protection that tenants have been getting during the pandemic doesn’t inspire confidence in being a landlord. On top of that, people seem to get so leveraged in real estate, it’s a recipe for bankruptcy. I never hear about people investing in stocks going bankrupt unless they do something extraordinarily stupid, but I hear about real estate investors going bankrupt all the time despite simply following best practices.
- mellavora 5y ago
  There were some interesting books written about some bankruptcies associated with stocks. Which doesn't subtract from you main point, yes, real estate is much riskier than it might look. For example-- what happens when municipalities realized their pension funds are broke, and they decide to raise property tax to cover the shortfall?
berkes 5y ago
This warrants some disclaimers. We might very well be in a housing-bubble. So put your money only in there if you can miss it and if it is safe for you. And always consider spreading your money. E.g. consider paying off mortgage, which could be seen as a safe version of "investing in real estate". As well as putting aside some cash, and buying in on some ETFs.
- heliodor 5y ago
  I should have mentioned that I was thinking of a long term scenario. 20-30 years. The covid real estate market is... interesting.
  - mikem170 5y ago
    Could be demographics driving the housing demand, also. The large millennial generation are now in the housing market, and the baby boomers haven't sold yet. In 20-30 years the baby boomers will not be around. That will change the demand for housing. Could be quite a difference.

xwdv 5y ago

Real estate is one of the worst asset classes right now. If anything is due for a crash it’s real estate prices. And the amount of protection that tenants have been getting during the pandemic doesn’t inspire confidence in being a landlord. On top of that, people seem to get so leveraged in real estate, it’s a recipe for bankruptcy. I never hear about people investing in stocks going bankrupt unless they do something extraordinarily stupid, but I hear about real estate investors going bankrupt all the time despite simply following best practices.

mellavora 5y ago
There were some interesting books written about some bankruptcies associated with stocks. Which doesn't subtract from you main point, yes, real estate is much riskier than it might look. For example-- what happens when municipalities realized their pension funds are broke, and they decide to raise property tax to cover the shortfall?

berkes 5y ago

This warrants some disclaimers. We might very well be in a housing-bubble. So put your money only in there if you can miss it and if it is safe for you. And always consider spreading your money. E.g. consider paying off mortgage, which could be seen as a safe version of "investing in real estate". As well as putting aside some cash, and buying in on some ETFs.

heliodor 5y ago
I should have mentioned that I was thinking of a long term scenario. 20-30 years. The covid real estate market is... interesting.
- mikem170 5y ago
  Could be demographics driving the housing demand, also. The large millennial generation are now in the housing market, and the baby boomers haven't sold yet. In 20-30 years the baby boomers will not be around. That will change the demand for housing. Could be quite a difference.