[quote=spdrun]Because I feel better owning property. Property is real. Property is an actual possession. Property can be lived in, touched, worked on with my two hands. And I enjoy working with my hands more than working with my brain. I’m primitive that way.
Index funds are dependent on the management of Wall Street scum that I don’t personally know and don’t trust (see also: Madoff). I like the control of real estate. It makes me feel safe to own multiple roofs.
*I* pick the tenants.
*I* pick the property.
*I* decide how to fix the property.
*I* can always live in the property if worse comes to worse.
It satisfies the selfish little kid in me to hoard physical possessions — kind of like the Kindergartener who wants all of the toys and woe to anyone who asks him to care and share.
Also, crashed property yields 8% or more, not 4-5%. In rents, not Monopoly money.[/quote]
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[quote=spdrun]Difference being, I’m looking for a very small piece of the pie, so it’s easier to steal it from under people’s noses.
I’m not looking to get rich, just to have all of my basic living expenses (housing, utilities, health insurance, food, medical, maybe car) paid by ATMs on the hoof (aka tenants).
Literally, I’m looking for 50-75k per year that I have to do minimum work for and not be beholden to a 8-6 job for. Beyond that, I have no interest in property — it’s not a means of growth for me, just a means to assure a basic level of subsistence, because I’m not creative enough to think of any other way of doing this.[/quote]
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Again, you’re not being consistent here…..
Your exact words were you’re looking for 50-75k per year that you have to do minimum work for, not beholden to an 8-6 job…beyond which you don’t really care about property. Then, you also replied you wouldn’t mind working for an ahole for some time if it generated $50k/annually for the long term….And now, I’m saying you can generate your $50k/annually with presumedly your ultra thrift/saver you are had you just been camping out in index funds which have no fund manager that actively tries to trade and rack up those management fees that would have produced your $50k/annual amount you wanted… But for some reason, you have a problem with that, with “fees” (though with index funds, those fees are negligible being passive funds not actively managed funds….while meanwhile, you don’t mind paying fees such as “property taxes”, “hoa” and other costs associated with owning real estate….
I thought your entire purpose was to try to reach your $50-75k/year in passive income as quickly as you can, regardless of how you get there…provided it’s legal and to a lesser extent ethical…Right?
Also the 8% versus 4%-5% thing…You aren’t getting 8% on property because you didn’t max out on your property when it was at an all time low, so of course looking back on it, if you put all your eggs into property at the exact time when it was low, yes 8% (actually even better)…But you didn’t…Just like you aren’t going to pick the winning stock every single time. So reality is, you are really going to do that much better than the average return on the market over the long period of time….
Besides, if you can get your $50k out of 4-5% why would you want to take on increased risk just to get 8%+ when you really don’t need to, if your only goal is $50k/year in passive income?
Again, where does your personal biases, prejudices, preconceived notions, and opinions matter in generating passive income? Don’t you think that your perceptions and biases are costing you a huge opportunity cost that is actually hurting you more than helping you reach your goal?
