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Unpopular opinion: Real estate isn’t a good investment.

Most people buy real estate to buy the home they live in, not to use as a rental property for cash flow.

Buying a home can cost you hundreds of thousands, or even millions, over the long term.

Even with a low fixed interest rate, ever increasing property taxes and insurance rates, home improvements, maintenance and repairs will negate most equity growth over time.

Renting might be a better option for most and you are not locked in if you decide to move on to a different part of town or get a job in a different state. Plus, the property headaches belong to the landlord or property manager which are just a phone call away.

Of course, there are exceptions but in general, I believe the above to be true for most.

#RealEstate #Investing #CashFlow

GFY 1y ago

SINCE BITCOIN, REAL ESTATE HAS BECOME A SHITCOIN!

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Discussion

Tony Carrera 1y ago

The question for those that come to this realization is: What do I save or invest in?

There’s only a few choices that meet or beat inflation. I think you hit on the better option.

To be fair, real estate purchased at a discount and used for cash flow can be a good investment since you can use heavy leverage (OPM) and take advantage of the depreciation. Key is buying below value and that’s just very difficult to find unless you find a sucker willing to to sell (think of those “we buy ugly houses” folks) or you’re in the industry and people call you first with good opportunities.

For most people though, they’ll just go to MLS/zillow and that’s just difficult to compete in and returns will likely not beat even S&P 500.

GFY 1y ago

NOT INCLUDING UPKEEP, TAXES, AND INSURANCE YOU ALREADY PAY CLOSE TO DOUBLE THE ASKING PRICE OF A HOUSE TODAY W/ CURRENT INTEREST RATE - AND IT'S NOT EVEN FAIRLY VALUED TO BEGIN WITH! GONNA BE A NO FROM ME DAWG

SO AS A FIRST TIME BUYER I'M LOOKING AT SPECIAL FTB RATES, OR TO SNAG SOMETHING IF THE ECONOMY REALLY CRASHES. I DON'T SEE MUCH OF A SENSIBLE WINDOW TO BUY OTHERWISE

Tony Carrera 1y ago

💯