Buying a property as an investment

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:[img]

Anonymous wrote:

Anonymous wrote:I sold three properties, invested the money, and retired. Zero work and it grows 24/7. The dip in 2022 did nothing to it.
Imagine not being able to find a renter or renter not paying. You have expenses investments don't have. Investments allow you to sit in cash and control the taxes you pay.
You will learn so much being in the market. Specially from mistakes.

you forgot about the leverage that could have from increase in property value. You have $50K to invest in either stocks or buy a $250K property which could increase by 6-7%/year and then you sell it in year 10 or 15. You would be much ahead with running an investment property and there would be tax advantages every year as well after paying for all the expenses and mortgage.

Yes - this is correct answer. If you your math right and are highly leveraged, real estate works better than S&P. But it’s a very active business nothing passive about it, if you want to make money in it

Right, so it's a job. Much easier to do nothing and simply invest. Less stress, less work, less hassle, and less chance you loose money over 10+ years.

What about borrowing costs? Suppose you are 100% leveraged, borrowing all of the money needed to buy a $1M property. Suppose the property appreciates at 6% a year while your borrowing costs are also 6%. Suppose you have no costs, other than borrowing costs. You won't make a nickel on this scheme because your borrowing costs completely offset the appreciation.

You missed the point of paying off your mortgage and other tax advantages when you can take passive loss and offset other income.

[Anonymous]

Save your money. Buy some gold ETFs for the next few months. When the market crashes because of tariffs and unemployment buy VT and then chill.

If you’re casually asking “should I buy an investment property” on here you have no clue what you’re getting into.