this post was submitted on 11 Jan 2024
1111 points (93.2% liked)

memes

9806 readers
5 users here now

Community rules

1. Be civilNo trolling, bigotry or other insulting / annoying behaviour

2. No politicsThis is non-politics community. For political memes please go to [email protected]

3. No recent repostsCheck for reposts when posting a meme, you can only repost after 1 month

4. No botsNo bots without the express approval of the mods or the admins

5. No Spam/AdsNo advertisements or spam. This is an instance rule and the only way to live.

Sister communities

founded 1 year ago
MODERATORS
[email protected]
[email protected]
[email protected]
1111
The system is broken (lemmy.zip)
submitted 10 months ago by [email protected] to c/[email protected]
264 comments fedilink hide all child comments
 
you are viewing a single comment's thread
view the rest of the comments
[โ€“] [email protected] 3 points 10 months ago* (last edited 10 months ago) (1 children)

And #3 - redundancy so a family member doesn't end up homeless. I have family that does fairly well for itself. When their first kid turned 18, they bought a rental house in case she needed it someday. When their second kid turned 18, they bought a rental house in case he needed it someday.

So they own two buildings "for the purpose of renting it out". Building number 2 is now perma-"rented" to kid number 2 because he needed it.

Also, bullet point #1. The NDQ typical long-term return is approximately 11%. Due to recent bubble bursts, it's down to 10.4%. Importantly, that's almost exactly 1.3mil in 10 years from 500k. Everything I've ever read and learned from investing or investors repeats that rental real-estate is a stable investment, not an aggressive one.

[โ€“] [email protected] 1 points 10 months ago

Good points and I don't feel like counterpointing a lot of it because I'm tired.

I will say though on the returns. I used the 10 years in my house as an example but recall that was not a steady increase. Normally housing should be well below an index. What happened say the last 4 years was that the price of my house went from about 700k to 1.3mil. the 10 year example masks what I was saying. Houses had to 100% be returning more than an index the last 5 years otherwise how do you explain the rampant greed? Corporations AND individuals have been drunk on overleveraging on the residential market. They're not doing that for index rate returns otherwise they'd be in an RRSP.