Why do people sell their houses?

[Anonymous]

Anonymous wrote:Being a landlord is a job. And a shitty one. At one point in my childhood, my parents had maybe seven rental properties, all of which were in nice enough areas (single-family homes and nice townhouses). Missing rent, broken things, negligent tenants, tenants who abandon the property, pet damage, etc. All a huge hassle. My index fund never needs a new roof.

Exactly. And your index fund's plumbing never craps out on a major holiday resulting in you having to leave your own home and family to go deal with a literally $hitty situation. It's bad enough when stuff like that happens in your own home. And if you think "whatever, the management company will handle it" -- sure they will. But they'll still be calling you to let you know what's happening, and to authorize paying double or triple to the plumber who is showing up on a holiday, and you'll still be stressed out over the money plus silently cursing your idiot tenants for whatever it was they tried to flush that led to it happening in the first place.

[Anonymous]

You’re making a rich people argument. The other 90% isn’t able to afford it.

[Anonymous]

Population growth is basically becoming negative everywhere in the world because birth rates are below replacement level in most countries now. Property is only a good investment if population growth continues to occur, if population growth goes negative then it’s no longer a wise long-term investment.

[Anonymous]

Being a landlord in DC is akin to lighting money on fire.

[Anonymous]

Many houses aren’t rent-friendly. A 6 bedroom in 20 acres isn’t likely to be rented

[Anonymous]

Rentals can become a nightmare if you get problem tenants.

[Anonymous]

Anonymous wrote:Your money is better invested in the market.

that is what we concluded. We briefly rented our house out but we had about $450K equity in a house worth $900K. We made about $1,000 more in rent than our mortgage payment each month but in the end we figured we would make more money putting that equity in the stock market. The house as only gone up about $100K since we sold it 5 years ago and the money we invested has doubled.

[Anonymous]

Is this a serious question?

-They need the equity for the new home
-Being a landlord is a pain
-Maintenance and repair costs
-Money can be placed in better investment vehicles

[Anonymous]

All situations are different. You cannot say that investment property is better than money in the market, someone's need to pay debt, or wanting to open a business.

[Anonymous]

Anonymous wrote:You’re making a rich people argument. The other 90% isn’t able to afford it.

Quite the opposite. Very rich people aren't landlords; they might own many houses but they don't rent any of them out. They know that their money is better invested in the stock market.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Your money is better invested in the market.

that is what we concluded. We briefly rented our house out but we had about $450K equity in a house worth $900K. We made about $1,000 more in rent than our mortgage payment each month but in the end we figured we would make more money putting that equity in the stock market. The house as only gone up about $100K since we sold it 5 years ago and the money we invested has doubled.

but you cant borrow $800k at a fixed rate and plow into market.

[Anonymous]

Anonymous wrote:Isn't it wise to keep them as investment properties if they are not too hard to maintain and not long distance? Shouldn't they hold as long as they can? Look how much price has gone up. When parents move to nursing homes or pass away, why are their children eager to sell and split money? Can't they rent for as long as possible? I only get empty nesters who downsize from mansions which are not good investments.

Have you seen the trajectory of property taxes?

[Anonymous]

Anonymous wrote:Being a landlord in DC is akin to lighting money on fire.

lol

[Anonymous]

I think investing in rental properties is really only a good idea if you are, like, a contractor and can mange repairs yourself or with subcontractors you trust.

My husband's stepdad was a building contractor and he amassed tons of rental properties over decades and it totally worked for him because he did most of the work himself. But me? I'd blow most of the profits, if there were any, on hiring plumbers etc who might rip me off or do bad work.

Also, some places, like DC are VERY tenant friendly.

[Anonymous]

My current property should be redeveloped. The house isn't old enough to be historical and wasn't built to a particularly high standard. Sometimes it is better to just start over.