News for hackers. Stuff that matters.
Re:Ask HN: What passive income investments exist to suppleme... by ac29 on Monday May 10, 2021 @01:57PM (#27108844)
A single property is not diversification, if anything it further concentrates your money into a single asset.
Re:Ask HN: What passive income investments exist to suppleme... by bluGill on Monday May 10, 2021 @02:54PM (#27109479)
That depends on the size of your other investments. If the property is worth $100,000 and your total assets are $1,000,000 with the rest in stocks, that one property is a reasonable level of diversification. If you already have a house worth $500,000 then taking money out of stocks to buy the rental is a bad investment. The above are but two very simplified examples. You need to figure out what is correct for your situation though - there is no one size fits all.
Re:Ask HN: What passive income investments exist to suppleme... by ixacto on Tuesday May 11, 2021 @01:06AM (#27114408)
It is a single investment that is government-subsidized with loan-interest subsidies, that you can live in, that also people tend to have great emotional attachment to an unhealthy extent.

Home loans at least in the United States taken out at usually 5x leverage which would never fly for index funds but is ok for some reason for buying a home, even though you could become unable to pay the mortgage in which case the bank has to spend money foreclosing and selling it.