[quote=spdrun]A rental property IS a productive investment, if kept in good condition. A property bought with expenses > income with the hope of future appreciation is a speculative investment. That was MY point.[/quote]
No, because you are buying an *existing* building. You are not *producing* something that didn’t exist before. If you weren’t competing with organic buyers (owner-occupiers) for existing dwelling units, they would be able to buy their own homes.
Building *new* houses or apartment buildings to rent out is productive because you are expanding the availability housing units, but buying existing assets is NOT productive.
Granted, some rehabbers could be considered productive investors because they add value, but most flippers just do the basic cosmetic stuff while trying to hide the expensive repairs. Also, when these “investors” become such a large part of the market, they move markets to the detriment of those who need these homes to actually live in. That is antithetical to what investing is supposed to do.
