Oh yes, it costs me $7k a year for the pleasure of managing a property, responding to all the tenants needs, the risk of paying for major future repairs, trusting the tenant to pay on time and in full (collections is practically impossible to enforce), dealing with vacancies while I still pay the mortgage, paying real estate agent fees which amounts to a month’s rent every time I get a new tenant. And that’s all for a house that I am not able to live in, and that I have locked up 20% of the house’s value for a down payment. It’s much more profitable just to let that money sit in the stock market instead.
But please tell me more about how you know better and that’s it’s all sunshine and rainbows for a non-corporate landlord.
You get a building that is worth more than you paid for, so that’s your payment.
On 25 years, you pay a fifth of the building price for it. And that is not accounting for the equity that the house gains over the years like we’ve seen during covid.
Here, let me play you the sad song on the smallest violin of the world.
Myself, I don’t. Being a landlord has quite a bit of risk from awful tenants as well as quite a bit of effort to make it work well. I have a job, don’t want another, and don’t want the additional risk; my investments are thus elsewhere.
For us, it’s because work required that we temporarily relocate. But we plan to move back in a couple years and we really like our house.
For others it usually has to do with the fact that selling a home costs 10% of the home’s value after all fees are accounted for.
Then there is the other set of people who genuinely think the equity in a property is more lucrative than money in the stock market (depending on the market and timing, it could be, but it’s ultimately a bet).
But I could ask the same question of every single person bemoaning the existence of landlords. If it’s oh so easy to be a landlord, why don’t they just become a landlord?
Probably because they don’t have the capital necessary to become a landlord in the first place. If you have enough money, being a landlord requires literally no work at all.
I guess getting that initial capital required no work at all either.
Why don’t they just get that initial capital if it’s so easy.
Unless someone was born with money, the argument against non-corporate landlords (97.5% of single family homes are owned by non-institutional investors) is nonsensical, because those owners had to work for the initial capital.
Oh yes, it costs me $7k a year for the pleasure of managing a property, responding to all the tenants needs, the risk of paying for major future repairs, trusting the tenant to pay on time and in full (collections is practically impossible to enforce), dealing with vacancies while I still pay the mortgage, paying real estate agent fees which amounts to a month’s rent every time I get a new tenant. And that’s all for a house that I am not able to live in, and that I have locked up 20% of the house’s value for a down payment. It’s much more profitable just to let that money sit in the stock market instead.
But please tell me more about how you know better and that’s it’s all sunshine and rainbows for a non-corporate landlord.
You get a building that is worth more than you paid for, so that’s your payment.
On 25 years, you pay a fifth of the building price for it. And that is not accounting for the equity that the house gains over the years like we’ve seen during covid.
Here, let me play you the sad song on the smallest violin of the world.
Sounds like you should sell that house, dude…
So why don’t you? What motivates you to not take that money to the stock market or start a business, if it’s oh so hard being a landlord?
Myself, I don’t. Being a landlord has quite a bit of risk from awful tenants as well as quite a bit of effort to make it work well. I have a job, don’t want another, and don’t want the additional risk; my investments are thus elsewhere.
For us, it’s because work required that we temporarily relocate. But we plan to move back in a couple years and we really like our house.
For others it usually has to do with the fact that selling a home costs 10% of the home’s value after all fees are accounted for.
Then there is the other set of people who genuinely think the equity in a property is more lucrative than money in the stock market (depending on the market and timing, it could be, but it’s ultimately a bet).
But I could ask the same question of every single person bemoaning the existence of landlords. If it’s oh so easy to be a landlord, why don’t they just become a landlord?
Probably because they don’t have the capital necessary to become a landlord in the first place. If you have enough money, being a landlord requires literally no work at all.
I guess getting that initial capital required no work at all either.
Why don’t they just get that initial capital if it’s so easy.
Unless someone was born with money, the argument against non-corporate landlords (97.5% of single family homes are owned by non-institutional investors) is nonsensical, because those owners had to work for the initial capital.
The risk of being a landlord is exactly why I don’t do it, and invest elsewhere.