Landlording

South america, but the return of fii is 0.29% per month, it was much higher in previous years

fii is superior in every way, specially if you talk about safety

it's usually a lot more depending on the type of property and the price. You need to find properties which are sold under the marketprice.

Download "Commercial real estate for beginners" by Peter Harris and subscribe to his youtube channel. I also torrented his 700 page CRE for dummies book, which will tell you almost everything you need to know about CRE.

The flaws are the people and the laws

You can get fucked a hundred ways

When the market crashes and you can't rent it. Wait for the market to crash to buy

>fii is superior in every way, specially if you talk about safety
I'd rather have property than fiat, especially south african fiat.

Yes, but you need to know the risks.

First, apartment buildings aren't cheap, and loan companies aren't biting at the bit to loan money to buy them. Good luck getting that loan.

Beyond that:
- Renters suck. They destroy things, tend to be entitled, and generally cause trouble - even assuming they pay rent. You'll need to expect to pay for repairs AND cleaning, not to mention security, maintenance, etc.
- You're at the mercy of the market, meaning you better have good property in a prime location at an affordable price. Go too cheap, you end up with low income housing filled with trash. Go expensive, you can't afford the property, and the entitlement rises.
- Insurance. You'll need it.
- Marketing. Even assuming you have a nice place, you need to market it and minimize emptiness. That costs money.
- TAXES. Most countries will absolutely fuck you on property tax and related bills.

With that said, it's still not a bad idea. If I were to do it, I'd incorporate, get investors, buy in a city, do the minimum amount of renovating necessary, and market the shit out of it as much as possible for free on the Internet. You'd probably make your money back in decades, but it'd still be yours.

enjoy starving to death in your luxury properties when the market goes to shit

Kus kohas Eestis sa täpsemalt elad? Mul mõned küsimused kinnisvara kohta.

Enjoy being beaten to death when the government collapses.

Enjoy buying kneepads when the fatties revolt.

I'll have my ex-convict PM Juan take care of them.

Tallinnas

Yup, that's exactly how it works.

The only flaws are:
-You need a substatial amount of capital to kick things off. No non-shady bank will finance you more than 60-70%. On your first loan it might even be less. So you have to front a whole lot of cash.
-You're not thinking in months or years - you now have to start thinking in decades. Depending on your local real estate and rent markets you'll be looking at amortisation in 20-40 years (in other words: usually less than 3-4% returns p.a.). First you have to invest a whole bunch of your own money, then you have to pay off loans and only then do you start to make back your initial investment. Sure - your networth goes steadily up, but most of it is tied up and your cashflow might be hurting initially.
-It's work. Not a lot compared to wageslaving, but it is work. Renovating and renting out is a lot of work. Once everything's setup it's almost free money though, you just have to be on call in case of emergency (just last week the fire department wanted to break down the door to one of my flats at 4 o'clock in the morning because my idiot tenant was dogsitting for her son, working night shift and someone complained about the constant barking) and do your accounts and taxes regularly.

tl;dr: It has a steep entry cost and is everything but a "get rich quick" scheme. If you have the money and time it's a brilliant way to climb to the top with very little risk. In any case real estate is an integral part of any nicely diversified portfolio above 200-400k net worth.

Kas sa oled maakler või on sul enda objektid mida üürid?

Mõlemat

The margins are very tight so you need to have numbers, along with forecasts, of every point of data. You also need to account for expenses such as renovations that may not be accounted for.

Thanks a lot guys.
How much $profit$ should be expected over a period of 20 years on avarege?

Aint no money real money in this. Either become a developer full time, or do commercial real estate renting to people who actually have money.

Yes. The problem is you need a good chunk of the price of the condo to make it worthwhile. At least 30% and more is better. That way your mortgage payments are low enough that renting at market rate still nets you some positive cash flow each month. Repeat when you have enough down for a second property. Don't buy something just because it's cheap or in a city that's losing population. Create a separate LLC for each property so your assets are protected from each other. If you keep doing this you can have a number of income generating properties by the time you're ready to retire. Good luck user. Nice to see somebody on this board thinking ahead.

Where in Tallinn are you interested buying in?

Obstacles:
>Slowly pay back loan from rent money
This will take 15-30 years
>After loan is fully paid, start earning $$$
Sure
>Repeat until rich
You don't live long enough

It's good as long as you don't get fucked on the building or have a bunch of bad tenants.

Shit is pretty cash

You should have a good chunk of money to start with or you're going to spend the rest of your life compensating for one apartment, only exchanging rent for loan parcel.

Depends on the property.

For example, let's consider here in DC. This property - on Capitol Hill so in a nice and desirable neighborhood, remodeled, etc. - is $1.3m:
zillow.com/homedetails/119-5th-St-NE-Washington-DC-20002/416307_zpid/

The mortgage estimate is about $5k. A place roughly equivalent currently rents for $8k:
zillow.com/homedetails/418-H-St-NE-Washington-DC-20002/2097942830_zpid/

But there are competitors renting for as low as $4k (not sure why):
zillow.com/homedetails/140-12th-St-NE-Washington-DC-20002/92408369_zpid/

So I'd probably split the baby and see if I couldn't get $6-7k/mo. for it, probably closer to $6k.

That's $1-2k/mo, but NOT including wear and tear and related problems, taxes, AND a ~$250k down payment. You'd also have to hold the property for 30 years in order for this scheme to net you the $1.3m profit.

In translation: It'd totally be possible, but you'd have to come to the table with a quarter mil and a lot of patience.

>How much $profit$ should be expected over a period of 20 years on avarege?

99% of the time there won't be real profit (i.e. you won't get more money out than you put in when adjusted for 20 years of inflation). real profit sometimes only happens after 40-50 years.
Whether you can make a nominal profit entirely depends on the location and your abilities. Find out what the average rent per square meter/foot of similar quality in a neighbourhood is, then compare to the average real estate price per square meter/foot in that area. If you have already bought, it now depends on you to find good tenants, negotiate rent and minmize vacancies. If your tenants leave every two years and it takes you two months to polish up the object and find new tenants - there goes 1/12th of your earnings each year and that's 80% on you for not finding long-term tenants and taking a whole two months to find new ones.

If you consider the initial investment as sunk cost (somewhat smart, since you're swapping money for real estate of similar value), you'll start turning a profit from year two on.
Tax-wise you'll have to write off the building over several decades (depends on your local tax code), so your taxable profit takes a hit each year instead of only in the first year where you actually bought the damn thing. Whether you turn a tax profit usually depends on how you financed it, since you can deduct interest payments on your loan. Be careful with this - if you take to long to turn a profit they might classify your activity as non-commercial, meaning you lose all your deductions and write-offs (possibly even retroactively). I don't know what your grace period is, but in my country I have 20 years to turn a profit and I usually aim at 15. I bought my first appartments without any credit and I was in the green in the second or third year (i had to renovate them for several months - if you have a good crew, buying rundown appartments is a pretty nice deal).

I plan to put down around 200k on an apartment building. That's enough for a
$1-1.5M purchase. Commercial loans work different and are more about the building than the borrower. I expect a 5-6% cap rate. It will have to have some kind of value add opportunity like rehab, raising rent, etc.

loans are just holding for someone else and holding a loan for another person money is deb tot the bank and debt is money to a company or another bank everyone owes money to everybody and everything and theres a 30 trillion dollar housing market in the united states and a 400 quadrillion derivative and credit and digital and shadow banking system and market in the world

figure it out op study math and do business and be honest and invest money and work hard and be passionate and honest and fair about what you care about and do things on your time and will OP

>What is the property ladder

kek
i litteraly just got a 90% financing for a 500k house from the Volksbank
on of germanys biggest banks

>got a 90% financing for a 500k house
This is literally the only reason why so many people get into real estate to make money.
Real estate is the only fucking place where average dumbfucks get provided 5:1 10:1 or even 20:1 leverage on such huge amounts of money without finance background.

I can answer since i bought a condo in toronto recently.
320k mortage at 2.67 is like $1273 per month. $2400 per year for property tax for a ~600 sqtft condo. another ~200/month utilities. I lease out for $2000/month, it made sense in my case due to my proximity and family support. Also, condos appreciate about 2-4% in the downtown core, although this information is sparse. vacancy rates low, unsold condo units high.

Do ur homework and see. generally though it takes forever to pay off a condo being a landlord, you have to calculate that opportunity cost; a house is even worse for renting, but you can see 5-20% appreciation in some cities and land for a 60x60 lot is going to be worth more than anything in the next 40 years.

My family had a very good thing going and owned three blocks of flats up until 1945 when the commies came and nationalised everything.

We were kicked out of our family home which was made into a daycare (which it still is today, the adjacent garden converted into a large playground), the flats in the blocks we used to own were split up into much smaller ones with shared bathrooms, and the family ended up forced to live in one of those and pay rent for it.