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Old 07-02-2019, 07:46 AM
 
Location: Washington State
18,462 posts, read 9,561,235 times
Reputation: 15753

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Quote:
Originally Posted by mathjak107 View Post
our real estate was fabulous for the most part ... but the two remaining co-ops we have are just shy of breaking even on the rent and new laws signed in to place last month capped rents so if we can't sell them for cents on the dollar we will likely walk away rather then subsidize tenants , especially being retired .
I'm not familiar with how rent controls and other laws affect housing so I wouldn't invest in NYC myself. I guess everywhere there are risks associated with government involvement including property tax increases. The rentals owned in Phoenix have appreciated like mad and the rents are growing so my real estate has probably earned better than equities though that is only true because of timing. Prices have risen so high in my home state (Washington) that I would think twice before investing more here.

Equities have had quite a run for decades which I think will continue as long as people's 401K's are invested every month in equities it has to continue the run after some dips.
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Old 07-02-2019, 08:08 AM
 
71,507 posts, read 71,674,131 times
Reputation: 49084
buying up rent stabilized co-ops can be incredibly lucrative but you usually buy a package ... they cost cents on the dollar ... but all you need is one or two tenants to sell you back the leases and each apartment can sell for 7 figures .. so we had 9 and sold 7 ...

the last 2 have no intention of leaving or buying the apartments ..at this point they are really free to us but are worth over 2 million .. we are talking to an investor group now for about 350-400k for both .. so far nothing signed

Last edited by mathjak107; 07-02-2019 at 08:58 AM..
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Old 07-02-2019, 08:18 AM
 
Location: Rust'n in Tustin
2,184 posts, read 2,375,015 times
Reputation: 3822
Quote:
Originally Posted by BadgerNCarolina View Post
Because you have decided to rent a property out, it now magically does nothing but appreciate? .
Again, you're talking about renting out your primary home, I'm talking about rental property. And regardless of if they appreciate or not, they still pay you a monthly income.

Ours are just part of a well balanced portfolio.
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Old 07-02-2019, 08:45 AM
 
71,507 posts, read 71,674,131 times
Reputation: 49084
bonds pay income too .....

in the end it is total return that grows your money .. not just , income not just appreciation ... good investments are good investments .
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Old 07-02-2019, 08:49 AM
 
Location: DFW - Coppell / Las Colinas
31,982 posts, read 36,613,387 times
Reputation: 38575
Quote:
Originally Posted by ysr_racer View Post
You must be joking?
Many cases it's LS.

You can guess what the L stands for.
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Old 07-02-2019, 09:13 AM
 
Location: Woodbury, MN
1,465 posts, read 1,532,247 times
Reputation: 1880
It's OK to go to those "Free Dinner" financial advice meetings, if and only if you NEVER sign up! There's a reason why you are given the "Free Dinner". The "Free Dinner" will be the most expensive dinner you've ever bought if you sign up! I know people that go to those "Free Dinner" meetings and sign up, and it's normally high commission, relatively low return results that they get. Even worse, their money is locked up for many years, and they are stuck with bad investments. But the high commissions were already made by the "Free Dinner" people. We went to some of the "Free Dinner" financial presentation meetings, didn't learn much at all, but we refused to sign up. So, it's just like time share sales presentations, do not sign up! But the timeshare sales experience is much worse. The free gift is never worth putting up with the high pressure timeshare sales people, and refusing to sign up.

I prefer Vanguard or Fidelity for investing. Fidelity has local offices where you can talk to advisers and use their services, which are more reasonably priced. They don't offer you a "Free Dinner", you'll have to pay for that yourself, but you'll save money if you pay for the dinner yourself, verses signing up with the high commission, poor return "Free Dinner" financial advisers.
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Old 07-02-2019, 09:54 AM
 
39 posts, read 35,494 times
Reputation: 53
Quote:
Originally Posted by ysr_racer View Post
Again, you're talking about renting out your primary home, I'm talking about rental property. And regardless of if they appreciate or not, they still pay you a monthly income.

Ours are just part of a well balanced portfolio.

Keep changing your argument, it does help you win. Better if you just listen and learn a bit. You wrote the below:

Rental properties in California do a couple of things.

1. They pay you every month
2. They appreciate over time
3. They may reduce your taxes

It's not rocket surgery.


I commented that number 2 was too simplistic a view and could get you in trouble, as markets fall, even in your beloved California. For further evidence, I did a simple search on 'real estate Stockton plummets', because I remember that area being hard hit, and these quotes came from the article (from 2012) I found:
Itís hard to overstate the depth of the housing crisis in Stockton.
"According to online foreclosure marketplace RealtyTrac Inc, Stockton last year had the second-highest foreclosure rate of all large U.S. metro areas, with 5.43 percent of all its housing units receiving foreclosure filings. Las Vegas had the highest rate: 7.38 percent, compared with a nationwide 1.45 percent.
Virtually new three-bedroom homes with cathedral ceilings, fireplaces, skylights and roomy backyards can now be had for little more than $100,000. House prices in Weston Ranch, one of the signature new subdivisions of the Stockton boom, have dropped from an average $450,000 in 2007 to around $100,000 now."
And then:
"The rest of Stocktonís housing stock tanked even more, falling 75 percent from the peak. Soon the Repo Home Bus Tours were rumbling through town. A developer bought the new downtown Sheraton, for pennies on the dollar, and turned it into dorms for students at the University of the Pacific."


I know your answer, rather than conceding that you were wrong, will be something like "well, that's Stockton, which is a hole." Or, "that doesn't happen near LA where I am." But trust me, it does, and if you can't concede number 2 above as wildly simplistic and even dangerous, then I suspect the fall will hit you as some point.
And btw - I started this thread with a post about the importance of passive income, so please don't reiterate your obvious point that the income is the goal... I get that and never argued that point.
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Old 07-02-2019, 10:05 AM
 
71,507 posts, read 71,674,131 times
Reputation: 49084
we had a real estate down turn here nyc after the stock market crash in 1987 ... no assets stand alone when things go wrong .. when the stock market sneezes real estate can catch a cold .

i had just bought my first investment property two weeks before ..when the smoke cleared i was down my entire down payment of 20% ... it took years to recover . rents fell too ... our house we lived in , in queens fell from 220 to 169k ....

if anyone thinks real estate anywhere is immune i got a nice bridge for sale ...
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Old 07-02-2019, 10:21 AM
 
Location: Rust'n in Tustin
2,184 posts, read 2,375,015 times
Reputation: 3822
Quote:
Originally Posted by BadgerNCarolina View Post
Keep changing your argument, it does help you win. Better if you just listen and learn a bit. You wrote the below:

Rental properties in California do a couple of things.

1. They pay you every month
2. They appreciate over time
3. They may reduce your taxes

It's not rocket surgery.


I commented that number 2 was too simplistic a view and could get you in trouble, as markets fall, even in your beloved California. For further evidence, I did a simple search on 'real estate Stockton plummets', because I remember that area being hard hit, and these quotes came from the article (from 2012) I found:
Itís hard to overstate the depth of the housing crisis in Stockton.
"According to online foreclosure marketplace RealtyTrac Inc, Stockton last year had the second-highest foreclosure rate of all large U.S. metro areas, with 5.43 percent of all its housing units receiving foreclosure filings. Las Vegas had the highest rate: 7.38 percent, compared with a nationwide 1.45 percent.
Virtually new three-bedroom homes with cathedral ceilings, fireplaces, skylights and roomy backyards can now be had for little more than $100,000. House prices in Weston Ranch, one of the signature new subdivisions of the Stockton boom, have dropped from an average $450,000 in 2007 to around $100,000 now."
And then:
"The rest of Stocktonís housing stock tanked even more, falling 75 percent from the peak. Soon the Repo Home Bus Tours were rumbling through town. A developer bought the new downtown Sheraton, for pennies on the dollar, and turned it into dorms for students at the University of the Pacific."


I know your answer, rather than conceding that you were wrong, will be something like "well, that's Stockton, which is a hole." Or, "that doesn't happen near LA where I am." But trust me, it does, and if you can't concede number 2 above as wildly simplistic and even dangerous, then I suspect the fall will hit you as some point.
And btw - I started this thread with a post about the importance of passive income, so please don't reiterate your obvious point that the income is the goal... I get that and never argued that point.
Are you being purposely dense? Of course any investment can go down, stocks can go down too.

But I stand by my statement, real estate costs more today than it did 50 years ago. Are they outliers, OF COURSE.
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Old 07-02-2019, 11:00 AM
Status: "Re-edit status" (set 14 days ago)
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
4,148 posts, read 1,890,030 times
Reputation: 3170
Quote:
Originally Posted by davephan View Post
It's OK to go to those "Free Dinner" financial advice meetings, if and only if you NEVER sign up! There's a reason why you are given the "Free Dinner". The "Free Dinner" will be the most expensive dinner you've ever bought if you sign up! I know people that go to those "Free Dinner" meetings and sign up, and it's normally high commission, relatively low return results that they get. Even worse, their money is locked up for many years, and they are stuck with bad investments. But the high commissions were already made by the "Free Dinner" people. We went to some of the "Free Dinner" financial presentation meetings, didn't learn much at all, but we refused to sign up. So, it's just like time share sales presentations, do not sign up! But the timeshare sales experience is much worse. The free gift is never worth putting up with the high pressure timeshare sales people, and refusing to sign up.

I prefer Vanguard or Fidelity for investing. Fidelity has local offices where you can talk to advisers and use their services, which are more reasonably priced. They don't offer you a "Free Dinner", you'll have to pay for that yourself, but you'll save money if you pay for the dinner yourself, verses signing up with the high commission, poor return "Free Dinner" financial advisers.
You've never owned a beach house but never owned it, have you?
Mom had a family beach home but as she was in her 80-90s she never wanted to go to the House. Howver, the house still needed caring and maintenence. Guess who got the chore? A TimeShare, would have been cheaper and easier. [I sold my share to my sister far below market value in order that she will later have the funds to do the maintenance and improvements. It's great house, view of the Beach and coast range, not in the Tsunami zone, great walk score]
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