So "not a part-time job" doesn't mean full time job? We just have to agree to disagree. Volatility of returns of owner/landlord of handful of single family rental homes is even worse than apartment reits. Just ask all those owners of rental properties of florida, arizona and some california. Their risk is very unsystematic.
+1 Along with believing some how single stock (residential investment property) is 50% less risky than index. It is turning portfolio theory on its head. Enron employees who invested entire their retirement savings in their company also believed their company was fantastic, knew everything and thought less risky
Overbuilding is clearly the issue. You can see it with new apartment starts all across the country, it isn’t isolated. When your mortgage can be $1,100 with taxes included while you’ve got to pay $1,500 or more to rent a much smaller and more compacted place. It’s quite a conundrum. They can’t even rent at full cap but still charge that much. I realize profits of landlords need to be included but that is incredible how far it drifts from a realistic market when everyone is employed. (Speaking of Texas here)
Really? So a handful of hours in a full year isn’t “passive”? The IRS doesn’t agree with you- https://en.m.wikipedia.org/wiki/Passive_income “Passive income is income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it.” “Some examples of passive income are: Any type of cash flowing property income Rental income and incoming cash flow from property or any piece of real estate”
Oh it's certainly not isolated....as for renting vs owning there is always a debate in that situation...some prefer to rent because ownership of a house has too much overhead, heavy taxes, repairs etc....I know many renters and I see what they pay to rent these one and two bedrooms, on average they are paying more than $1800 a month..I went with with a friend of mine last year and spoke with the sales reps, you could only sign one year leases with rents on average moving upwards of 4-7% A YEAR!!!!, I said not for nothing but those are some ludacris raises after one year...see right now landlords have the market covered, they keep jacking up rents as if these great times will last forever, they are squeezing the consumer however it's also the dumb consumer who also keeps paying these higher rental prices....that of course will change soon. Rents in my opinion are peaking....I stopped renting years ago...I now pay 1/2 of what one would pay to rent a place my size.....so buying was actually a benefit for me. Do you know how much mortgage you can afford with a $2000 monthly rent!! I tell this to so may people I know....for approximately every $500 you can take out a $100,000 mortgage.... another thing though is that most don't have 20% to pluck down on a new place....anyway going to be interesting to see what happens once these high end luxury rentals can't capture the rents they Are getting now....there is no game plan, maybe a months free month, maybe free parking for a year, eliminating the pet fees of $50 a month for a dog....my friend pays an additional $1400 a year for a dog and covered parking...whewwww....
https://www.wsj.com/articles/silicon-valley-explores-a-new-investment-your-home-1518955201 Silicon Valley Explores A New Investment: Your Home Startups backed by deep-pocketed investors are looking at a new way to profit from rising home prices
It’s incredible what they get away with, and I thought it was just the luxury of not having grass to cut *wink wink*
Yeah so let me buy a call option your house where you carry the majority of the risk and then market it as some kind of thing helping you buy a home. This shit sucks badly and is symptomatic of a market that is no longer structurally sound nor respectful of the fact that one's primary residence is a liability, not an investment.