Re:If the Economy Is So Strong, Why Are Consumer Stocks Tank...
by userinanother on Tuesday October 17, 2023 @06:27PM
(#37922454)
That’s a big caveat. Inflation is 4-5% officially, bonds are 7-8 ish maybe more for real estate investment. But real estate prices are falling or flat. If you suddenly need to earn even 6% off a house you need to rent it for quite a bit. It might make sense still at the low end (under 250k) but a 500k property needs to rent out for 2500a month to break even. And that’s not including taxes, maintenance, vacancy, admin, and transaction costs at sale. House prices need to come down for this to be a profitable venture again. The bet is that real estate prices will rise to new highs faster than inflation or at least comparable assets. If that doesn’t happen then you lose money
Re:If the Economy Is So Strong, Why Are Consumer Stocks Tank...
by PH95VuimJjqBqy on Tuesday October 17, 2023 @10:48PM
(#37924348)
you want what you're saying to be true because you want reality to agree that you're going to make it unprofitable to invest in real estate.
good luck with that.
Re:If the Economy Is So Strong, Why Are Consumer Stocks Tank...
by userinanother on Wednesday October 18, 2023 @04:14PM
(#37934169)
?? It’s not always profitable to invest in real estate. When interest rates go up that’s not favorable for real estate for basic math reasons
Re:If the Economy Is So Strong, Why Are Consumer Stocks Tank...
by PH95VuimJjqBqy on Thursday October 19, 2023 @12:39AM
(#37938509)
I keep re-reading my post and I can't see where I've used the word always there.
Can you point it out for me?
What you're trying to say is that it would be less profitable and that may be true but as long as it tracks with inflation it would be worth it as an investment tool.