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Old 12-21-2016, 03:42 PM
 
263 posts, read 243,806 times
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We have a rental property and i only expect it will appreciate through the years. Mortgage and all expenses are being paid by the tenants... We are still a good 15 years from retirement... Our idea is to keep the rental in the long term and sell it when we get tired of having long distance tenants.

I see there are many folks in here that have built their wealth via investment property. On the other hand many also have investd in the stock market, etc... as primary means of wealth accumulation for retirement.

Can you let me know what your experience was in this regard? What worked for you? What do you think is a best way to accumulate and protect a nest egg, and be financially independent? I have the impression that those that invested in rental properties were able to retire early (or earlier)... And that those who put their nest eggs primarily in investment vehicles (funds, etfs, etc...) had to wait longer to ensure the nest egg was big enough sustain the 4% or 3% withdrawal rate.

Thanks for your thoughts.
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Old 12-21-2016, 03:48 PM
 
Location: Florida
4,376 posts, read 3,712,866 times
Reputation: 4116
Real estate is a good way to make money if you are willing to accept the problems that come with tenants. But I am not so that leaves me with the stock market.
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Old 12-21-2016, 03:53 PM
 
Location: Haiku
4,179 posts, read 2,595,608 times
Reputation: 6155
Historically over the long run RE returns are about the same as the stock market so I am not sure one is better than the other. With RE however you can build up sweat-equity, adding value through your own labor. I think it comes down to preferences and situation. I had a job with a 401k and matching contribution from my employer so of course I am going to take that. It worked well for me - I retired at 62, to Maui.

My recommendation is to do both if you can. Diversification is pretty important.
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Old 12-21-2016, 04:00 PM
 
Location: Central IL
15,253 posts, read 8,560,668 times
Reputation: 35693
Quote:
Originally Posted by newnewyorkers View Post
We have a rental property and i only expect it will appreciate through the years. Mortgage and all expenses are being paid by the tenants... We are still a good 15 years from retirement... Our idea is to keep the rental in the long term and sell it when we get tired of having long distance tenants.

I see there are many folks in here that have built their wealth via investment property. On the other hand many also have investd in the stock market, etc... as primary means of wealth accumulation for retirement.

Can you let me know what your experience was in this regard? What worked for you? What do you think is a best way to accumulate and protect a nest egg, and be financially independent? I have the impression that those that invested in rental properties were able to retire early (or earlier)... And that those who put their nest eggs primarily in investment vehicles (funds, etfs, etc...) had to wait longer to ensure the nest egg was big enough sustain the 4% or 3% withdrawal rate.

Thanks for your thoughts.
You ONLY expect it to appreciate? Is that realistic? How long have you had the property so far? How much experience?
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Old 12-21-2016, 04:08 PM
 
Location: NE Mississippi
13,690 posts, read 8,601,319 times
Reputation: 19962
Quote:
Originally Posted by newnewyorkers View Post
We have a rental property and i only expect it will appreciate through the years. Mortgage and all expenses are being paid by the tenants... We are still a good 15 years from retirement... Our idea is to keep the rental in the long term and sell it when we get tired of having long distance tenants.

I see there are many folks in here that have built their wealth via investment property. On the other hand many also have investd in the stock market, etc... as primary means of wealth accumulation for retirement.

Can you let me know what your experience was in this regard? What worked for you? What do you think is a best way to accumulate and protect a nest egg, and be financially independent? I have the impression that those that invested in rental properties were able to retire early (or earlier)... And that those who put their nest eggs primarily in investment vehicles (funds, etfs, etc...) had to wait longer to ensure the nest egg was big enough sustain the 4% or 3% withdrawal rate.

Thanks for your thoughts.
We used rental property. The advantage that we saw was that it allowed us to accumulate other people's money.

15 year mortgages on new property. Took nothing out for 15 years and have been receiving rentals ever since.
It will probably work out that we have nothing into the property and will receive income for 25 years. Then we sell the property that someone else paid for.

Made sense to us.
I'd bet there has been a whole lot more money lost in the stock market than in real estate. Most people do it wrong, I think. They use 30 year mortgages and try to make money from the first year. They get discouraged when they don't make very much money, and because they used 30 year mortgages they never will make any money.
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Old 12-21-2016, 04:08 PM
 
Location: Albuquerque NM
1,662 posts, read 1,529,751 times
Reputation: 3650
Real estate is local so hard to say. I don't personally know anyone in my area who has made a a lot of money on rental homes or on their own personal home - some are still underwater from the recession. But there are certainly success stories in California, Seattle, Portland, Denver, Austin, etc.
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Old 12-21-2016, 04:14 PM
 
Location: SoCal
13,297 posts, read 6,362,704 times
Reputation: 9932
I slept during the stock market crash, bank run, etc..
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Old 12-21-2016, 04:30 PM
 
71,779 posts, read 71,896,917 times
Reputation: 49345
real estate to me is not passive investing . so the money i make in real estate goes in to the markets and is invested passively .

i consider real estate me working for money while the passive money is my money working for me
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Old 12-21-2016, 04:48 PM
 
2,601 posts, read 5,302,045 times
Reputation: 5205
Not so much a matter of preference as practicalities.

Most regular jobs offer the possibility of saving for retirement pre-tax dollars- sometimes with an employer match (i.e., free money). The investment options are stock or bond funds. It worked out well for me to accumulate in index funds. It complements my real estate investment (in my house).

Best if you already have a full-time (or more than full-time) job. I did.
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Old 12-21-2016, 04:58 PM
 
7,984 posts, read 3,474,005 times
Reputation: 11238
I don't understand how you think rental property is good for seniors? Every time a tenant moves you have work to do and not to mention the constant upkeep. Maybe with a handyman you could do it but most seniors don't want that kind of work. Not to mention the hassles from tenants who cry when the rent is due. I wouldn't have rental property on a bet. I had a duplex when I was a lot younger with a lot more energy. No thanks now....
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