Why a house is a terrible investment (2013)

Re:Why a house is a terrible investment (2013) by toomuchtodo on Sunday April 22, 2018 @08:15PM (#16899511)

You do both to diversify (equity and real estate). Having the property as a rental is very tax efficient as well (you get to depreciate a property that appreciates in value). Also, no one is going to let you leverage equity purchases with debt like you can with real estate.

Disclosure: I own several rental properties to round out my investment portfolio.

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Re:Why a house is a terrible investment (2013) by asfasgasg on Sunday April 22, 2018 @08:21PM (#16899544)

You don't really need to do both to diversify. There is a lot of exposure to real estate in the stock market (rental companies + commercial real estate + construction), and REITs can be used to gain more exposure if desired.

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Re:Why a house is a terrible investment (2013) by toomuchtodo on Sunday April 22, 2018 @08:27PM (#16899583)

I can manage my real estate risk better (IMHO) in a rising interest rate environment better than a REIT can (and I find most REITs to be overvalued, specifically O). My cash on cash returns are better as well.

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Re:Why a house is a terrible investment (2013) by curuinor on Sunday April 22, 2018 @08:39PM (#16899633)

Yeah, but can you diversify by location better by yourself than a REIT? Lots of cases of individual cities and neighborhoods going to pot while the rest of the nation and world prosper

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Re:Why a house is a terrible investment (2013) by toomuchtodo on Sunday April 22, 2018 @09:54PM (#16899950)

My goals differ from a REIT slightly in that I want a quality return on investment, but also want to be able to live in my properties around the world as time permits (I’m a remote worker).

Returns vs utility is an acceptable trade off for me.

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