Renting can be cheaper overall than buying. Typically rent will not cover the landlords full mortgage payment, just the interest on it + expenses + profit. Sometimes it's even less than just the interest (the landlord will be hoping to sell the home at a profit later on). The biggest residential REITs make like 5-10% profits, maybe 20, in a great year. You'll probably not do as well as them.
At 74 you might not be around to realize the gains from a house, even if it was a good idea.
Just 4% of 1M is $40,000, so if you earn 7-8% annually on that money you are making more money renting. Not only that but you can just move if you have annoying neighbors or you want to live elsewhere for a while. Extremely good movers can be had for $5000 or so.
People _really_ love buying real estate but it's often a bit of a turd of an asset.
At 74 you might not be around to realize the gains from a house, even if it was a good idea.
Just 4% of 1M is $40,000, so if you earn 7-8% annually on that money you are making more money renting. Not only that but you can just move if you have annoying neighbors or you want to live elsewhere for a while. Extremely good movers can be had for $5000 or so.
People _really_ love buying real estate but it's often a bit of a turd of an asset.
Statistics: Posted by barcharcraz — Sat Dec 23, 2023 12:03 am — Replies 5 — Views 593