Would you drain your investment account 100% to buy a rental property outright?
I've been investing since 2015 (lel) and my account is up 15%
I THINK stocks will be mediocre in the near future
Would it be dumb to buy this property and get back into stocks in 2019?
Yeah you'd be dumb. Rental property isn't really something you just get into and out of because there is a pretty hefty rake from buying and selling frequently.
Just buy some bonds and collect the coupon until you want to get back into stocks.
I sold my rental property and invested in stocks. I'm now making money off money I actually own and have no debt.
stupid idea if i ever heard one.
if you are like fucking rich and want to have some real estate up to 10% of your wealth that will provide you with a living even in times where the market takes a crapper. and you are not shy of the difficulties of dealing with renters. then you can do that i guess.
going 100% into landlording is financially illiterate beyond comprehension.
It is really dumb top buy a rental property outright. Get mortgages instead and buy four
I'm struggling with this too...have tons in the market and no debt. It's really difficult for me to go from that to taking out 4-5 mortgages...but if they're paying for themselves it shouldn't matter. Not really sure how to justify it.
Just run the roi numbers for a leveraged and unleveraged rental home. You'll see the difference. Always make decisions based on the numbers.
i can support this! and calc some opportunity costs also!
and don't fucking forget maintenance and upkeep costs for fucks sake! look at some real relevant statistics if you can.
>but if they're paying for themselves
i always wonder how the people who write stuff like this are not hobos.
I don't understand how paying for a property without a mortgage and renting it out is obviously dumb
Probably I'd want the rental managed for me, which wipes out some of the advantage