Reply to Should I sell my house or rent it out?

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Reply to "Should I sell my house or rent it out?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I've read some retirement forum comments that say real estate is the way to grow your net worth and is always a good investment. I disagree for the reasons that PPs have mentioned, but maybe that's why I'm not rich.[/quote]Well, just do the math. In today's dollars (inflation adjusted), OP can expect to get $2k/month rental income (assuming management co) and retain the property, or 4% return in the market on $600k from sale. Over 25 years, that's $1.2M rental income plus retained property value, vs about $1.2M in the stock market. [b]It's about even either way.[/b][/quote]

It is not. The property will need work. And over 25 years, the needed repairs/improvements will be substantial. Then, there will be times when the property is not rented, etc. Also, where are the property taxes and the home owners insurance (for landlords), which is much higher than owner occupied.

OP, you don’t have to be a financial guru or pay anyone to manage your money. Just buy a diversified index fund and be done.  [/quote]

Any work done on the property is tax deductible and the rent pays for both the money being funneled into a brokerage and money being funneled back into a house. It is also natural diversification because the stock market isn't always going to be pretty. [/quote]

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