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A comment on Euro falls below parity with the dollar. Parent comment

Re:Euro falls below parity with the dollar by Sohcahtoa82 on Monday August 22, 2022 @01:38PM (#32554681)
I find this incredibly hard to believe, especially when it's not hard to find people that buy houses for the sole purpose of renting them out[0]. In order to ensure you at least break even in the short term, you'd need to charge a rent at least equal to the mortgage + property tax.
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Re:Euro falls below parity with the dollar by onlyrealcuzzo on Monday August 22, 2022 @02:31PM (#32555319)
This is simplified.

Negative cash-flow real estate (anywhere with absurd Price-to-Rent ratios) has DESTROYED the S&P 500 (on leverage) for the last 20 years because of abnormally high appreciation (leveraged) due to interest rates perpetually decreasing.

Most R/E is leveraged.

Historically, you did not need positive cash-flow in R/E to make a fortune, and a lot of the fortunes amassed came from negative cash-flow R/E that consistently become more and more negative cash-flowing...

It doesn't really make any sense unless you believe interest rates will perpetually get lower. Anyone who took that trade over the last 20 years did very well.

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