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Started By
Message
Stock market vs Real Estate
Posted on 11/12/17 at 5:06 pm
Posted on 11/12/17 at 5:06 pm
Both are blooming. RE is insane here in the Bay Area but what's your go to when cash in hand? When I say real estate, this is residential properties to buy and rent out. I've been thinking about it for 6 months but can't pull the trigger because stock is getting me much better value.
8
Posted on 11/12/17 at 5:37 pm to siliconvalleytiger
I’d venture to say the RE market in the Bay Area is overvalued as it is in much of the country.
This post was edited on 11/12/17 at 5:39 pm
Posted on 11/12/17 at 5:56 pm to siliconvalleytiger
Renting is a pain in the arse.
Posted on 11/12/17 at 5:56 pm to siliconvalleytiger
I personally wouldn’t bother with real estate purely out of the hassle of dealing with tenants etc
Posted on 11/12/17 at 7:47 pm to OleWarSkuleAlum
"I’d venture to say the RE market in the Bay Area is overvalued as it is in much of the country."
The same argument could be made about the stock market.
I would consider real estate as a way to diversify if you're already in the stock market.
I have both.
The same argument could be made about the stock market.
I would consider real estate as a way to diversify if you're already in the stock market.
I have both.
Posted on 11/12/17 at 8:44 pm to TheWalrus
quote:
I personally wouldn’t bother with real estate purely out of the hassle of dealing with tenants etc
ever hear of PROPERTY MANAGEMENT??? Also, do not tell me it is too expensive and kills returns. it does not IF you buy right.
Posted on 11/12/17 at 8:47 pm to siliconvalleytiger
Posted on 11/12/17 at 8:49 pm to siliconvalleytiger
my gains in 2017
RE: 5%
SM: 7%
Cyrpto: 600%
so real estate is last and will be for the foreseeable future
RE: 5%
SM: 7%
Cyrpto: 600%
so real estate is last and will be for the foreseeable future
Posted on 11/12/17 at 8:56 pm to Fat Bastard
But why pay 8-10 percent for it?
Posted on 11/12/17 at 9:02 pm to Fat Bastard
What do PMs charge in Baton Rouge?
Posted on 11/12/17 at 9:08 pm to Paul Allen
quote:
But why pay 8-10 percent for it?
I use PM for my OOS properties. You go where the money and deals are. You have no choice OOS. You cannot manage that. even if the thing is local why not if you have too many to handle? or do not have time? Again if you buy right it is not an issue. It is worth it. If that property management fee is what killed your PCF and made a doable deal, UNDOABLE then it was bad to start with cash flow wise.
Posted on 11/12/17 at 9:08 pm to siliconvalleytiger
LINK
Here is a thread I made a while back with some spreadsheet comparison. It doesn't calculate everything, but it does a decent job of comparing.
Here is a thread I made a while back with some spreadsheet comparison. It doesn't calculate everything, but it does a decent job of comparing.
Posted on 11/13/17 at 5:16 am to rocket31
quote:
RE: 5%
SM: 7%
Cyrpto: 600%
Unless you liquidated the other 2 one of these is very different than the others and not a fair compairison.
Posted on 11/13/17 at 9:15 am to siliconvalleytiger
You could invest in Real estate focused ETF. This way you get the benefit of the market, diversity and don't have to be a landlord. Sure the returns may not be as great, but neither is the risk or the workload.
Posted on 11/13/17 at 1:22 pm to rocket31
quote:
RE: 5%
SM: 7%
Cyrpto: 600%
so real estate is last and will be for the foreseeable future
I'm honestly wondering if you aren't just trolling the board at this point. You can't be this stupid.
OP, real estate can be a serious long-term money maker, just be prepared to expand your horizons on where/what kinds you invest in. There are sectors of it in all stages of bull/bear markets. I think two of the big deterrents most people see with RE are coming up with the upfront money and making that leap-of-faith for a long-term commitment that stocks and other options don't require. If you can get over that then it's hard to find a problem with RE.
I'm happy that people are making money off of crypto, but I fear that it's all going to crash and be another cautionary tale akin to Enron, tulips, and Iraqi dinar before we're through. I hope I'm wrong.
Posted on 11/13/17 at 1:50 pm to rocket31
quote:
so real estate is last and will be for the foreseeable future
which you continue to prove you don't know anything about. My link above disproves your claim. You must be very weak with numbers. So because you are in a shitty REIT or RE ETF that is the gold standard? read my link and educate yourself. My RE returns blow yours away.
Posted on 11/13/17 at 1:55 pm to Decisions
quote:
I'm honestly wondering if you aren't just trolling the board at this point. You can't be this stupid.
Sounds like he is in crap RE fund or just does not understand what COC and PCF are. If all he is looking at is appreciation or capital gains of some fund then he is not to be taken seriously here ever again because it proves my points he knows nothing about RE and what factors into a return on different RE investment vehicles.
maybe just highly naive and ignorant. My link above explains it.
This post was edited on 11/13/17 at 3:54 pm
Posted on 11/13/17 at 1:56 pm to Decisions
quote:
I think two of the big deterrents most people see with RE are coming up with the upfront money
no doubt. We have discussed that here before. It does take upfront money and usually a nice wad of cash OOP unless you are fixing and flipping on a LOC like steven here does.
Posted on 11/13/17 at 3:43 pm to Fat Bastard
quote:
ever hear of PROPERTY MANAGEMENT??
oh my lord
property management sucks.
paying a property management company also sucks, and there is no guarantee they are any good at what they do.
they're either a huge time sink or you are reducing your returns by ~10%. there aren't that many properties that can still cash flow after a 10% hit.
if you do it yourself (which i have), its also a lot of time/labor costs
investing in REITs is so much easier than being a landlord. investing in crypto is the easiest thing in the world and ive made more money in one year than id ever make with RE. not even fricking close .
dealing with tenants crap and BS for a small profit monthly, giving up profit to "property managers " and unexpected repairs that any tenants need to be fixed right away and there's only so much of that you can take.
also, many people don't have accurate information on current rental markets in their area. they tend to overestimate how much their place can rent. a couple hundred dollars off per unit and you've just signed a 15,20, or 30 year note on a property you'll have to fund until the market goes up.
$75K invested in 10 year US treasury bonds would earn around 2.45% a year in interest. around $150 a month. that is basically the rate of return on the safest investments you can buy. (a diversified bond fund would earn you more).
owning property entails a huge amount of risk and you're earning slightly more than you would with an investment in "safe" investments. not a great deal.
the people on this forum are going to lie, lie and lie some more OP. stay safe pls.
Posted on 11/13/17 at 9:53 pm to Decisions
quote:
I'm happy that people are making money off of crypto, but I fear that it's all going to crash and be another cautionary tale akin to Enron, tulips, and Iraqi dinar before we're through. I hope I'm wrong.
I couldn't agree more.
Call me old fashioned, but I don't consider something to be a viable LONG TERM investment if its gains to date have relied solely on the Greater Fool Theory. I had an aunt who had a beautiful run back in the 80's as a professional gambler. Consistently made a six figure income just from blackjack for about three straight years. But would I have used her short term success as an indicator of good career options? I wouldn't have, but now, some people might - they say there's one born every minute. But if a person wants to throw some play money into speculative investments or spare time into speculative endeavors (hell, I want to be a professional race car driver when I "grow up" - might get to F1 when I'm 60 or so), have at it.
As for real estate, it's not for everyone (neither are individual stocks), and no one here has said that it is. Like anything else, the people who are most successful are the ones who have a solid plan and who work that plan. Including yourself and Fat Bastard (maybe some others who I missed), I think those of us who have taken it seriously, treated it as a business (not a hobby) and stuck with a good plan, we've found success. That doesn't mean that you won't stub (or maybe break) your toe from time to time. But if you're a person who doesn't run to a safe space when things get rough, you'll bounce back.
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