this post was submitted on 02 Oct 2023
1165 points (90.5% liked)
Memes
45550 readers
1232 users here now
Rules:
- Be civil and nice.
- Try not to excessively repost, as a rule of thumb, wait at least 2 months to do it if you have to.
founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
I've calculated if it would pay off to build a house with four units on a piece of land that I already have. It would barely pay for itself after 30 years but let's be honest, 30 years is when the first big renovations are in order. I'm not sure if the "landlords are rich leeches" - trope holds up outside expensive cities with inherited properties.
The big money's isn't in the rent, the rent is just to pay the mortgage and upkeep. It's that you're getting in debt that someone else is paying for you while they gaurd your asset which is only gaining in value, you then sell that somewhere in the futute.
On average, the same amount of money dropped into the NASDAQ will have much better overall returns. Real estate ROI is about 4% per year, where the stock market has held close to 11% over the long haul nearly a century.
For small-time landlords, it's often about "I have a place for me or a family member to live if things go bad". For bigger ones, it's the tax-shelter and the low volitility of real estate, as well as diversity in case you need to sell when their stock is down.