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This is a complete misunderstanding of how it works. Whether you buy or rent, you are making yourself poorer (either by paying rent or by paying ownership costs, some of which are unrecoupable). However, in exchange for your money, you are getting a roof over your head, a place to sleep, receive mail, unwind, and be protected from the elements.
In other words, buying 100 vacation houses won't make you rich, it will make you broke (and most of them will be foreclosed on.)
I know quite a few people who are worth millions via buying, renting, and selling RE. They are hardly poor.
I know quite a few people who are worth millions via buying, renting, and selling RE. They are hardly poor.
You are totally missing the point. What these people are doing is either collecting rental income or re-selling their properties. This isn't what was being discussed. We are talking about buying a house to live in.
My fear is not being “priced out”. It is getting a neighbor like yourself. We are not stupid enough to pay 3x for a house ten years from now- wherever your area is.
I’m not sure what your age is, but I will tell you that there are many places to make money besides real estate. I wish you great luck, though!
By the way, how are you going to afford a new roof, re-modeling, new HVAC, landscaping, plumbing repairs, appliance replacement, new flooring, etc? If you plan on getting 3x what you paid in ten years, you better have savings.
I just got my roof, new windows including shutters and plumbing updated within the past 2 months and my home insurance came down 30%, I'm waiting for the refund check for this years over payment and my mortgage payment will do down too because of the lower escrow amount. You would be lucky to have a neighbor like me. So it's gone up more than 60% with the new repairs and upgrades factored in.
You are totally missing the point. What these people are doing is either collecting rental income or re-selling their properties. This isn't what was being discussed. We are talking about buying a house to live in.
You are the one who mentioned buying 100 properties.
You are the one who mentioned buying 100 properties.
Good grief. Ok, let me try this again. If you buy 100 properties that you use for personal use (i.e. to visit), and you do not sell any of them, and do not take tenants into any of them, you will go broke. (Yes, no one does this, but this is a hypothetical to illustrate the point.)
Do you get this?
Ok, now, do you accept that houses are an expense when you do not sell them and do not turn them into rentals?
Do you accept that this is true for one house also, even if you don't buy 99 more?
Good grief. Ok, let me try this again. If you buy 100 properties that you use for personal use (i.e. to visit), and you do not sell any of them, and do not take tenants into any of them, you will go broke. (Yes, no one does this, but this is a hypothetical to illustrate the point.)
Do you get this?
Ok, now, do you accept that houses are an expense when you do not sell them and do not turn them into rentals?
Do you accept that this is true for one house also, even if you don't buy 99 more?
Why would anyone buy 100 homes to visit, even Oprah doesn't have that many homes.
No you don't go broke if you buy a home to live in. It's better than paying rent and having nothing or being told you have 30 days to move.
And if you buy 100 homes and have 100 tenants pay for them you will own 100 homes because your tenants will be paying your mortgage, as they go up in value that's income when you sell or raise the rent.
Are you saying you never bought 100 homes to visit?
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I'm done.
