Posted on 08/11/2020 7:39:43 AM PDT by SeekAndFind
Sure rental properties.
Hows that going to work when you can’t evict anyone ?
If Democrats sweep on Nov 3rd, individual landlords will be screwed. But Democrat donors will be handed multi-billion contracts for mass public housing.
“The true benefits of direct real estate investing accrue once you’ve built a portfolio of properties that can provide significant positive monthly cash flow as a reliable source of income.”
If you are willing and able to manage a portfolio of properties then it is probably a good investment.
For the vast majority of people investing in a diverse portfolio of index funds in a 401(k) is more likely to be the best option.
Stay away from real estate unless you have a lot of it. In that case it’s a full time job so you won’t be retired ever. But if you are unlucky you might get to watch it burn in a riot.
RE: But if you are unlucky you might get to watch it burn in a riot.
Depends on where you live. This is a big country and not everyone owns real estate in Seattle, Chicago or Portland.
Index funds have been very good to me. The only real estate I have money in is the house I own and live in, and while that’s also been good to me (so far - let’s see how bad Newsom can crater the CA housing market), I’ll stick with index funds for active investments.
Cash out of equities and put that $ on the sideline, with perhaps investing 10% in physical gold/silver. No way on rental properties until this C19 blows over. Real estate, IMO, is about to come down significantly.
How much do you want to take out in cash or equity during a down market twice in 10 years?
It may be a good investment for some people but there are too many risks, liquidity issues, and hassles owning and maintaining real estate for me.
I prefer to own quality REITs with decent yields.
Hows that going to work when you can’t evict anyone ?
You have to vet your tenants carefully and only rent to people of character. Oh...wait; that could be racist, sexist, homophobic...
I know a guy who has a rental property in Philadelphia. He had the proverbial tenant from hell, and had to go to court to get rid of him. It took him months and the guy threatened him and vandalized his van. He lost thousands in unpaid rent.
Don’t even think about a rental property in a city.
It depends. I had a four unit for 20 years, half of which was in my early retirement. I sold it this spring. The new guy has it full and everyone is paying. I have another friend in South Carolina who owns 10 rental houses. All full, all paying.
Rental housing can be a 24 hour seven day a week occupation. Index is buy and forget.
RE: Index is buy and forget.
Until the next stock market crash of course ...
You shouldn’t invest everything in the index if you are retiring in the next 10 years. Housing can also crashed. Look at all the tenants not paying rent right now.
“Hows that going to work when you can’t evict anyone ?”
I built an upscale apartment complex back in 2004.
Never had a problem collecting rent even now during covid. All my renters are 100% employed. They are either wealthy retires, gov’t employees or health care workers. I am very choosey who I pick as renters.
I have a 1-2 year waiting list.
Apt was just paid off last year.
Republicans own, Democrats rent. Dealing with many Democrats in retirement is not for the faint of heart.
“ If you are willing and able to manage a portfolio of properties then it is probably a good investment.
We use managers in multiple states. We invest for cash flow, permanent tax benefits, and growth.
Doing just fine during covid.
Also invest in music royalties, metals, and stocks.
That said, the average person isn’t willing to learn much and is better off holding stocks and pretending we’ll never have another 10-20 year bear market.
Why does it have to be one OR the other? Diversify.
Investing is one area where “diversity” is indeed a strength.
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