Why is real estate (home rentals) investing so popular? (jobs, interest, cost)

[leastprime]

He gets the properties; If he, marry's and produces an heir.
I may consider illegitimate children

[Lovehound]

I have nobody I care enough about to leave them anything. My cousin is only a year younger than me, and making poor health decisions. (He's fat, I'm not; I work out at my gym.) If I leave it to him he won't enjoy it for very long. He has nothing and I think it's 50/50 that I will survive him.

I expect to be in a LTR later in life. If she survives me I'll be more than happy to leave whatever I have to my SO. I favor women about 6 years younger than I, so she has a good chance of living a decade past my time.

[leastprime]

I like dogs!��

[Lovehound]

Originally Posted by leastprime

I like dogs!��

Me too. That's why I picked the member name I use.

Dogs is good PPL!

[artillery77]

Originally Posted by Cabound1

And if you are lucky enough to have invested in the right companies pre-IPO, you can make even more, even faster. And REALLY retire......no real estate “second job”.

You must realize that being asked to invest pre-IPO is a pretty small group of people. I mean, I should be a pro athlete and retire when I'm 35 too...you know?


Real estate is popular because it's accessible. There's lots of sellers, not all of whom are more sophisticated than you. There are lots of strategies and individual can take. Do I sell outright, fix and flip, rent, move in, turn it into a B&B? You can get a crazy good ROI. The gains are tax deferred indefinitely and lenders are willing to loan capital for it. There's a ready infrastructure in place to support it that I couldn't get opening my own business.



Finally...it's land. Fashionable for thousands of years.

[Lovehound]

Originally Posted by artillery77

Real estate is popular because it's accessible. There's lots of sellers, not all of whom are more sophisticated than you. There are lots of strategies and individual can take. Do I sell outright, fix and flip, rent, move in, turn it into a B&B? You can get a crazy good ROI.

I'm facing a serious decision a few years down the road when my house value has gained $250K, the CG single exclusion, when I can cash out and move to a more affordable area. That's just shloads of cash! — I would seriously consider that particularly if California's government continues on its crazy socialism trend. Discontinue Prop 13 and I'm outta here as quickly as I can close. In today's market that would be about 7 days DOM and 30 days to close. According to Zillow's (imaginary) numbers I'm already up $150K in 5 years.

[artillery77]

Meh...worry about it then. In the meantime concentrate on getting a wife. Not only does your exclusion double, but you don't have to worry about making decisions all the time. You just say, "yes dear" and you're all good.

[Ultrarunner]

Before tax law changes the parents of my friend got all their money out tax free.

They owned several rentals and every two years sold the home they were in and moved into the next rental... in 9 years it was around 2 million tax free...

They landed in Incline Village Nevada with a beautiful lake view home... still spend time with the Grandkids but the 500k married exclusion allowed him to retire and enjoy life...

[Lovehound]

Originally Posted by artillery77

Meh...worry about it then. In the meantime concentrate on getting a wife. Not only does your exclusion double, but you don't have to worry about making decisions all the time. You just say, "yes dear" and you're all good.

I'm not worrying now. If CA doesn't go crazy and Prop 13 holds I may stay here forever. Yes I want a LTR but no way am I getting married, not even for the tax exclusion.

Originally Posted by Ultrarunner

Before tax law changes the parents of my friend got all their money out tax free.

They owned several rentals and every two years sold the home they were in and moved into the next rental... in 9 years it was around 2 million tax free...

They landed in Incline Village Nevada with a beautiful lake view home... still spend time with the Grandkids but the 500k married exclusion allowed him to retire and enjoy life...

I think that still works. The timing is wrong but I'm kicking out my PHX tenant next month and I could move in there and sell my current residence, live there 2 years and then upgrade.

The only thing is, I just *LOVE* my beautiful current home! My PHX property is very nice too, but it's in a tract, the only view is neighbors' houses. And it has a pool. (I think a pool is required in PHX...)

[aslowdodge]

Originally Posted by artillery77

You must realize that being asked to invest pre-IPO is a pretty small group of people. I mean, I should be a pro athlete and retire when I'm 35 too...you know?


Real estate is popular because it's accessible. There's lots of sellers, not all of whom are more sophisticated than you. There are lots of strategies and individual can take. Do I sell outright, fix and flip, rent, move in, turn it into a B&B? You can get a crazy good ROI. The gains are tax deferred indefinitely and lenders are willing to loan capital for it. There's a ready infrastructure in place to support it that I couldn't get opening my own business.



Finally...it's land. Fashionable for thousands of years.

Great point about who has access to an IPO.
While real estate does take a bit more money to start with, lot's of people have access to that money or are able to get financing. Leverage is a big advantage with real estate.
Like I said, it is more work, but you can make more money than the market provides and have a bit more control. You can choose and time when you buy stock, but you have little control other than that. With real estate you can make money yourself by improving it and see a return very quickly.