Post by Admin on Oct 4, 2021 14:39:18 GMT -5
Years ago I thought a lot about RE(real estate). I read many books, got a license as a RE appraiser, and discussed it with many RE owners.
I came to several conclusions:
1) RE is too complicated with too many moving parts. You have to take a loan, rent the place, collect rent, fix stuff, and sue tenants. You have to deal with vacancies, taxes, attorneys...
2) It takes too much time
3) You have to worry
4) You have to do everything right, from buying to renting, fixing, and more
5) If you want to make it, you have to put in the time and effort. I already had a good job, I don't need another.
Bottom line
None of this interests me and why I only invest in mutual funds and ETFs.
These funds don’t talk back to me. I can replace any fund within 2 minutes of work.
I didn’t even buy a REIT fund over the years, since REIT is a very narrow sector and can’t beat tech long term.
Anyone who invests in the SP500 had a pretty good return over the decades with zero work, RE success? not a “sure” thing as the SP50.
BTW, my thinking from the start was always to keep our lives simple. We owned our home and 2 vehicles but never owned a boat, a rental, or a timeshare. If we need any of these, we just pay for it which is a pretty easy concept and lets you sleep well at night.
I came to several conclusions:
1) RE is too complicated with too many moving parts. You have to take a loan, rent the place, collect rent, fix stuff, and sue tenants. You have to deal with vacancies, taxes, attorneys...
2) It takes too much time
3) You have to worry
4) You have to do everything right, from buying to renting, fixing, and more
5) If you want to make it, you have to put in the time and effort. I already had a good job, I don't need another.
Bottom line
None of this interests me and why I only invest in mutual funds and ETFs.
These funds don’t talk back to me. I can replace any fund within 2 minutes of work.
I didn’t even buy a REIT fund over the years, since REIT is a very narrow sector and can’t beat tech long term.
Anyone who invests in the SP500 had a pretty good return over the decades with zero work, RE success? not a “sure” thing as the SP50.
BTW, my thinking from the start was always to keep our lives simple. We owned our home and 2 vehicles but never owned a boat, a rental, or a timeshare. If we need any of these, we just pay for it which is a pretty easy concept and lets you sleep well at night.