TLDR: We bought our first investment property and after running the numbers, I believe we would have done better putting our money in the stock market.
We bought the property based on hearing so many people talk about how incredible real estate is as an investment (Bigger Pockets, our realtor, and many wealthy older people). Now that all is said and done - we did our repairs and have renters in - I did a full projection of our property with some estimated (conservative) appreciation, all of the tax benefits, etc. In the end I think a conservative stock portfolio managed by a professional would do better over a 10-20 year period. I believe that our house will perform decently compared to other real estate investments, so this question isn’t about our house in particular, but really all real estate vs stock market decisions.
I’ve talked to a few people who have invested in real estate about this, and they seem hung up on the real estate return figures. I can’t get them to realize that just because you’re not actively losing money doesn’t mean you’re not leaving money on the table.
At this point I’m pretty confident that I’ll put the rest of my savings with an investment firm, but I want to make sure I’m not missing some huge opportunity in real estate.
Submitted January 20, 2019 at 11:46AM by AnotherAllie89 http://bit.ly/2HnQllI
