Re:The Hot Property That’s Next on Tech’s Agenda: Real Estate
by r_smart on Friday September 28, 2018 @10:18AM
(#18093538)
Right, and you price the rent based on that risk profile. A price that is absolutely going to be higher than the mortgage, unless as another commenter pointed out, there are incentives & tax breaks that cover the cost you would otherwise bear.
Re:The Hot Property That’s Next on Tech’s Agenda: Real Estate
by michaelscott on Friday September 28, 2018 @01:17PM
(#18095073)
The risk profile is carried by the asset owner, not the person making use of the asset. I buy equities, fixed income assets and bonds based on my risk profile, not someone else's.
A property investment, like any investment asset, is a bundle of risks as well as rewards. Yes, you as the owner take on the risk of things like market crashes, insurance and repairs but you also own an expensive asset which you can sell at any time (a renter cannot). You need to deal with the risks and rewards of a property like you would any other asset.