Look, I get it, real estate can be a very good investment for some people. But I have seen several personal finance articles in the last few days as well as one podcast touting the benefits of passive investment with commercial or residential rental properties. Stuff like "the smartest and wealthiest individuals invest their money into cash generating rental properties". I get the merits of it but I would hardly call managing a portfolio of commercial properties a passive investment because there is a lot of work that goes into managing the properties. Sure you can have someone manage it for you but that's not inexpensive. Let's also not forget that real estate investing usually, unless you have deep pockets, involves an incredible amount of leverage. So sure you can generate absurd returns but you also assume a lot of risk. No one really talks about that part.
It just feels like everyone and there mom is peddling this idea that it's the ultimate key to accumulating wealth but on the flip side it also feels like the same people touting it are the ones benefiting from any hype generated so they can sell their property to the next schmuck that wants to get in on the action. It kind of reminds me of the whole house flipping movement.
Submitted January 30, 2023 at 09:23PM by AbandonedToilet https://ift.tt/453GrNZ
