Buying real estate is really cash intensive with higher than average expenses. I hope this sparks a great discussion.
At best you have no HOA, a no property tax, no to low maintenance, and that leaves the growth/performance.
At worst, you have an HOA hurdle, property taxes, and some maintenance, all of which can push your annual expense ratio up towards 3%! If offered a mutual fund with a 3% expense ratio, most would balk!
Even without any debt against the house, real estate seems to price inversely proportionally to interest rates. Like an existing bond trading below par when rates rise.
So what makes physical real estate more attractive than an investment portfolio.
Some people have a just "real estate only" mentality but it seems most indexes show real estate performance around 10% long term, does that count the property taxes and HOAs and taxes on gains and rent being taxable as well?
Submitted August 18, 2018 at 12:46AM by blahblahblahinfo https://ift.tt/2OF72b2
