Originally Posted by
sailingfun
True until you factor in that you must pay to live somewhere and you are leveraging your investment with the ability to put a relatively small down payment to control a large asset at some of the cheapest interest rates you can obtain. As I pointed out a one million dollar home with 20% down yields a 20% profit in year one if the home appreciates only 4%. Your payments also increase equity each month. The one thing that caught my attention early in my career was the senior guys who seemed really well off had money in real estate. It certainly should only be a portion of your financial planning but should not be overlooked.
I have done well with multi unit properties if you can stomach the hassles of being a slumlord. Did it last 15 years and I just cashed out on my last one and will bite the bullet on capital gains. Just need to time the market , usually just luck I’ve found out. Then when youre Getting phone calls asking if you want to sell your property- it’s a good time to sell it !
As far as younger Gen Z , D and E not wanting to buy. They do have a point. I personally cannot fathom the idea of not owning my home, yet I lease a car. A lot of younger people I engage with don’t want the hassles of ownership. They can pay their rent, fulfill their lease and be gone . Also a lot of nice apartments are like resort living now. A newer pilot I worked with travels the world like a gypsy on her days off and it sounds appealing. Society is changing .