Property is NOT how you make money..srs

[milesgiles1]

Property is to store wealth already accumulated. It is not the way to get rich in the first place.

So many miscers come on here, particularly in a rising market, say 'huh duh' I'm getting into real estate, going to pay off this one in 6.13 years (back of an envelope calculation based on fantasy figures) 'then I'm getting a multi occupancy huh duh and I'll be on that passive income retirement when I'm 35' etc etc..

Absolute piffle. Governments, and markets, can't just let property go up higher than earnings indefinitely. You end up with a nation of renters who feel they are being extorted and will vote for someone who taxes property wealth (viz, Corbyn in the UK).

Any idiot can look at the last few years of the housing market and think ' this is where I need to be'. It doesn't work like that. You may well have made money the last few years, in fact if you bought after 2009 you almost certainly did. Doesn't make you Warren Buffet.

Cliffs/life advice. Get a skill. Educate yourself. Get a side hustle. Stop looking for shortcuts. Forget the words passive income. Live within your means, acquire capital, invest said capital wisely. Eventually you may feel some of your wealth should go into real estate. There ain't no easy road.

[davik]

you blew it by saying invest capital wisely. no one on this forum has the acumen to invest properly and no one here i doubt even has 10 million dollars to actually get some decent money back. im sick of the armchair investors on this forum

also just say money ffs. stop trying to sound like big shots by saying capital ****

[Mr-Nathan]

op is right. property appreciation is small, yet everyone wants to do it. i think they see this as the easy route to residual income.

i have 2 portfolios, an ISA which is where my main investments go, and a CFD account which is for shorter term trades, usually on the companies i already own, which dip and i rebuy.

the CFD account is leveraged.

in the past year, my ISA is up 46% and my CFD account up 98%. Recently i've been asking myself the question, should i take all this money and buy a house? I currently rent in London. I am hesitant because i know that whatever house i buy will appreciate less than the investments i make, which are relatively safe, smaller companies.

also, anyone can learn to invest. i taught myself about the markets alongside my engineering degree (no formal financial education)

[bodymovesyou]

I bought my house two years ago for $716K and similar houses today are going over $900K

The key with property is to get in while the city/town is still growing.

[guest89]

Real estate is the most effective way to leverage someone elses money and generate enough returns to repay the debt and collect a profit.

[Aristotelian]

Cliffs/life advice. Get a skill. Educate yourself. Get a side hustle. Stop looking for shortcuts. Forget the words passive income. Live within your means, acquire capital, invest said capital wisely. Eventually you may feel some of your wealth should go into real estate. There ain't no easy road.

You are making odd generalizations of persons who make money on property. Part of that is based on this sort of implication:

no one on this forum has the acumen to invest properly

Yet, this sort of chit post is made by a rather feeble mind - one that projects its own inadequacy on the wider populace as a primitive coping mechanism (he won't feel bad that he doesn't know how to invest (and it's not all "money"...sigh) if nobody else here knows how to either).

Let's continue with the generalizations:

op is right. property appreciation is small, yet everyone wants to do it.

Not all property appreciation is small everywhere. In the same way that you have morons losing lots of money on cryptocurrency (they read threads on forums saying "Just LOL I made 30K easily bought coins waited a week and BOOYAH" and think they can simply do this too), you have morons thinking that they truly understand a local property market and invest in it without realizing the actual cost of property investment. People think that buying property automatically entails a return on investment, and fail to calculate the true cost of home ownership. Having said this, I've made a profit in property transfers, but nothing close to what people who speculate + have contacts in industry to rapidly re-do and flip can make.

The OP did touch upon an important issue - really, you should be investing in things you know a lot about instead of just following the latest trend because someone says "Yeah silver is trending man!". There are a lot of sharks around, and playing ignorantly will just make your investment a tool for their benefit and not yours.

[milesgiles1]

Real estate is the most effective way to leverage someone elses money and generate enough returns to repay the debt and collect a profit.

Suggest you watch/read The Big Short

[milesgiles1]

I bought my house two years ago for $716K and similar houses today are going over $900K

The key with property is to get in while the city/town is still growing.

Events out of your control/knowledge can easily throw this theory to the winds

[davik]

no aristotelian you dont. you would be working for a big firm making big money, if you did. at best you are gambling or paying someone else to do it for you

[milesgiles1]

you blew it by saying invest capital wisely. no one on this forum has the acumen to invest properly and no one here i doubt even has 10 million dollars to actually get some decent money back. im sick of the armchair investors on this forum

also just say money ffs. stop trying to sound like big shots by saying capital ****

There are people with 10 million who didn't actually start with 10 million you know.

It doesn't take anything special to invest wisely.

[Aristotelian]

no aristotelian you dont. you would be working for a big firm making big money, if you did. at best you are gambling or paying someone else to do it for you

You know nothing about me, and you're so ignorant that you take my clearly written post above as referring to myself as being the exception to your pathetic generalization. You don't know where I am or who I work for or how much money I make. How do you know how much money I make? Answer: you don't, you are just desperate to assume that everyone on a messageboard is as ignorant as you, and that's the source of your own coping mechanism. Guess what? People who really do know how to advise people in investing their money...charge people for that advice. So you won't be able to tell how good they are from a forum post. Is that news to you?

Please, keep projecting all you "know" about other posters on this forum. Seems like you desperately need to believe that you're right about everyone, though you know almost no one here.

[PisseninMisc]

You know nothing about me, and you're so ignorant that you take my clearly written post above as referring to myself as being the exception to your pathetic generalization. You don't know where I am or who I work for or how much money I make. How do you know how much money I make? Answer: you don't, you are just desperate to assume that everyone on a messageboard is as ignorant as you, and that's the source of your own coping mechanism. Guess what? People who really do know how to advise people in investing their money...charge people for that advice. So you won't be able to tell how good they are from a forum post. Is that news to you?

Please, keep projecting all you "know" about other posters on this forum. Seems like you desperately need to believe that you're right about everyone, though you know almost no one here.

[EnderG60]

It sure as hell is ONE way to do it, but it should never be the only thing youre doing.

[cashinout]

that's true, unless you flip property like crazy, even then, the govt limits you

starting a business is the only way to get rich

[FreshStart12]

Bought my house for $90k. It just appraised for $170k less then 3 years later. Lol at OP.

[_zman]

Real estate is the most effective way to leverage someone elses money and generate enough returns to repay the debt and collect a profit.

Agreed, I've averaged a 10% gain in appreciation each year.

[AVIK777]

op is right. property appreciation is small, yet everyone wants to do it. i think they see this as the easy route to residual income.

i have 2 portfolios, an ISA which is where my main investments go, and a CFD account which is for shorter term trades, usually on the companies i already own, which dip and i rebuy.

the CFD account is leveraged.

in the past year, my ISA is up 46% and my CFD account up 98%. Recently i've been asking myself the question, should i take all this money and buy a house? I currently rent in London. I am hesitant because i know that whatever house i buy will appreciate less than the investments i make, which are relatively safe, smaller companies.

also, anyone can learn to invest. i taught myself about the markets alongside my engineering degree (no formal financial education)

Why trade CFDs and not stocks ?

[PKneyr]

I live off rent, didn't read a single word.

[davik]

You know nothing about me, and you're so ignorant that you take my clearly written post above as referring to myself as being the exception to your pathetic generalization. You don't know where I am or who I work for or how much money I make. How do you know how much money I make? Answer: you don't, you are just desperate to assume that everyone on a messageboard is as ignorant as you, and that's the source of your own coping mechanism. Guess what? People who really do know how to advise people in investing their money...charge people for that advice. So you won't be able to tell how good they are from a forum post. Is that news to you?

Please, keep projecting all you "know" about other posters on this forum. Seems like you desperately need to believe that you're right about everyone, though you know almost no one here.

after all that you still didnt counter argue what i said. 70% of what you write is feel good, pointless crap. give some substance in your next reply. maybe some numbers if youre exempt from what i think is pretty reasonable to assume of most armchair investors. i also didnt say anything about you specifically in the last reply - it was description of people in general. you misread me

[davik]

it doesn't take anything special to invest wisely.

lmao

[martin545]

VTI: Total US Index ETF
VBR: Small Cap Value Index ETF
VXUS: International Index ETF
VSS: Small Cap International Index ETF
Bonds: 20% of portfolio when <40 years old, 40% when 40-60, 60% when 60+
BND: Total US Bond Market Index ETF
BNDX: International Bond Index ETF

[residesinAZ]

r/iamverysmart ------>

[nm1891]

The misc, where a thread about still living home at 25 is filled with miscers admitting they still live with mommy and daddy well into thier 20s and in another thread every miscer is a finance and investing wizard. LOL.

[Jax05]

There's only one way to get rich these days and that's crypto.

You read it on misc. Now go invest.

[Duckliver]

you blew it by saying invest capital wisely. no one on this forum has the acumen to invest properly and no one here i doubt even has 10 million dollars to actually get some decent money back. im sick of the armchair investors on this forum

also just say money ffs. stop trying to sound like big shots by saying capital ****

I don’t have any advice to give anyone. But you are very wrong on assuming people here don’t have that much to invest. Also was easily making 35k dividends with 40% of what you set as your standard for making money off investments. I’m pretty sure if most miscers could passively make that much without working they would be happy.

[Norrov]

Eh.

I make good money from my regular career, but I now rent out 3 paid off homes and I only owe on the one I’m currently in. My job is chitty and I’m NEVER home, so hoping I’ll be able to quit the grind one day.

Repairs have been minimal so far. I’m also buying some land for RV storage and plan on eventually building storage sheds. I got some land for a decent deal that’s off the interstate.

You definitely have to make good money upfront. I’ll admit I’m fairly ignorant about other ways to invest my money, so you could be right. No point in fixing what is not broke tho.

[Scarrdbutsmartr]

Bro, look up the Louisiana purchase. Uncle Sam came out of that property deal smelling like a rose. Definitely blew up his portfolio....

[milesgiles1]

Bought my house for $90k. It just appraised for $170k less then 3 years later. Lol at OP.

Right area, right time, yes you make money. Thought I explained that in the op. Do you have two houses? Because if not, all you have really done is hedged against future property price inflation. Like I say, it's not in itself a way to get rich, it's just one of many ways to safeguard the value of the assets you already hold.

[milesgiles1]

Agreed, I've averaged a 10% gain in appreciation each year.

A moderately successful small business or side hustle is going to return a lot more than 10% if it's at all scaleable.

Will look up long term average property price rises when not on mobile. Think in the uk it's probably in the 6-7% range over 40 years, and probably less in the States. For an average guy on an average salary, that isn't going to make you rich. Comfortable yes, but not rich.

[milesgiles1]

I live off rent, didn't read a single word.

Going to need some details there. Age, employment history, capital put down etc? You can certainly live off property EVENTUALLY, but you are going to need the initial capital, time, and luck.