Investments

DangZagnut · 2019-12-03T19:39:55+00:00

This is my personal opinion. It is frequently disagreed with.

Houses are liabilities. Every accountant on the planet whines and says houses are assets, because that's how accountants view things.

I am not an accountant, I define things my own way that reflects reality.

There are two types of assets. Capital appreciating assets, and income producing ones.

Capital appreciation is all based on speculation, and we learned in 2008 that houses are not a guaranteed capital appreciating asset. It's not even an income producing asset.

A house creates expenses. Mortgage expenses, electricity, water, sewage, garbage, maintenance, HOA fees, landscaping, insurance, taxes, etc.

All houses give you, as an individual, are a ton of expenses.

That is not an asset, that is a liability.

Liabilities lose money, and create expenses, which is what a house is.

The only way property is an asset is if you know for a fact it is going to have capital appreciation, like you know exactly where the new highway bypass is being built and can flip it to the government, or you intend for it to produce income, ie, rent.

You need to take every expense generated by a home, charge more rent than that, and somehow hope you have quality renters.

Optionally, be physic. You won't have the inside track on highway bypasses as that intel is only for the rich speculators, so you need to have a mystical dream.

If you're going to have a secondary home you intend to keep, you can rent it out under the expenses, purely to take some financial pressure off you by having someone else pay for some of it, but then you have to deal with renters.

If you intend just to make money on it, you have to combine being psychic, knowing the housing market, and somehow getting all expenses and mortgage covered and maintaining quality renters who don't destroy your investment.

So if you know where a new university is being built, that's an excellent place to buy and build a rental property. Or if you can get some firesafe deal on a beach house from a grieving widow.

Everyone got into that and bought second homes in 2006, then foreclosed on them, thinking they could rent them out, not realizing that no one needed to rent when everyone was suddenly and stupidly able to buy a house.

So think long and hard about every single expense a house brings, not just a mortgage rate. There are a ton of expenses, and time, that go into property unless you're being very financially shrewd about it. For some people it works out great, for many it becomes basically a full time job in addition to any other job they have.

nosoupforyou · 2019-12-03T21:58:42+00:00

A single family home is a lot higher risk in terms of renting. If you have just one, you'll have no rental income at all for periods of time while you are still trying to pay the mortgage.

With a multi-unit, you are more likely to have some income coming in at all times. The more units, the higher the average at any one time. For example, a 6 unit building might have on average 5 apartments rented while a 2 flat might have 1.

Of course you could own multiple investment homes. But also you will have to deal with renters, maintenance, renters, property taxes, paperwork, renters, and finally renters.

Once you've got enough property though, you can have a management company handle a lot of this for you, at a cost.

Kmac0505 · 2019-12-03T21:23:45+00:00

Max any tax advantaged savings accounts such as TFSA or Roth IRA with high yield/safe regular dividend paying stocks. Reinvest the dividends. In 20-30 years you can and likely will have sizeable sum.

JADMGTOW · 2019-12-03T19:48:27+00:00

We'll this is not the right place for this (check out r/personalfinance) but my personal belief is that real estate although highly profitable is not right for many. And that people are drawn by money rather than actually doing thorough research(which can be a double-edged sword) I have seen hugely profitable deals and real estate portfolios in my family and family friends and it's a hit or miss. Some deals work out and on some, you'll lose money due to unenforceable circumstances.

divorcerapesurvivor · 2019-12-04T05:18:17+00:00

Get yourself the largest number of unit property that a residential loan can get. In the US it is a four unit. In most places in the US one unit of a duplex will pay your mortgage. I invest in multifamily properties. You get massive tax write offs. Investing in single family homes may never get you to financial freedom. With a multi-family you have 2,3,4 or greater rental incomes under one roof. One yard to mow. One trash bill. It is best if tenants are paying all their own utilities. Become a mortgage expert. There are certain requirements for different types of loans. You can just speak to a bank loan officer and ask what kind of Loan products do you have? I think the key to investing and business is to aim high and right. An investment is a vehicle to get from point A to point B. There are a lot of ways to invest in real estate. I originally was buying single family homes and fixing them up and renting them. Then I eventually didn't see the value in that anymore. And the game became more about expanding my footprint and leveraging debt to acquire good quality larger passive income as well as cashflow. What ever you think you would be happy with double it. Then you will miraculously find yourself landing somewhere in between.

divorcerapesurvivor · 2019-12-04T05:44:01+00:00

There is this book called "Multi-Family Millions" by David lindahl. And also you should read "Rich Dad Poor Dad" by Robert Kiyosaki.

divorcerapesurvivor · 2019-12-04T05:47:49+00:00

Here is a helpful document 27 Ways to Buy Real Estate with No Money D27 ways to buy real estate with No Money Downown.

Title	Investments
Author	tomwrdevops
Upvotes	9
Comments	13
Date	December 3, 2019 7:27 PM UTC (6 years ago)
Subreddit	Posted in /r/MGTOW
Original Link	https://old.reddit.com/r/MGTOW/comments/e5m6i9/investments/
Archive Link	https://theredarchive.com/r/MGTOW/investments.385191 https://theredarchive.com/post/385191

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