Looking at real estate vs stock market returns. How much ROI have you seen your real estate investments yield over the years on average? I know there are so many factors. Just trying to see if RE is worth it given that I will lock in a large amount if cash.

like
Posting as :
works at
You are currently posting as works at

RE takes advantage of leverage. Example- bought a commercial building in CO for $800k. Used an SBA loan at 7% (it was a different interest environment!) with $160k down. Six years later sold for $1.7m. So $160k turned into $900k gross profit. Also have to factor in all the other goodness - profit on rent, equity building, depreciation, deductions like mortgage interest and tax.

I suppose you can do better day trading or taking long positions on high growth stocks. But for me RE is an important part of a diversified portfolio.

Also, bought our prior home - a condo loft in Manhattan - for $900k with $90k down. Lived there for 15 years and sold for $2.7m. So $90k initial investment turned into $1.8m gross profit.

likeuplifting

Also sounds like the timing of these purchases was perfect. Prices will still very depressed in 2009-2013. Would be harder pressed to find such great returns today IMO. Very market dependent

Location, location, location and a little luck. If you buy the house and then need to repair or replace a bunch of stuff it eats into your profit. Plus you can get desperate to get the monthly rent and pick a bad tenant that destroys the property. You can make good returns but it isn’t foolproof.

like

What is a good return? Is it competitive with that of the stock market?

Director 1- great profit! Good for you.

Op- An additional perspective. I didn’t know what I was doing as an RE investor but became and accidental landlord when our jobs took us to a different market. My condo in an second tier city gets us 6.5% with no works at all from our end. Rents super easy/ never vacant etc. we bought it right before the 2008 crash and haven’t made any money in property appreciation. Probably break even.
The reason I mention it is that the key is to leverage and pick the right kind of investment property if you are looking to invest. Maybe commercial real-estate or duplex do much better. But probably require more work.

like

Deloitte OP- yes, the condo is paid off at 270k. So the 6.5% is measured on profit after subtracting (condo association cost, insurance and any repairs)

Its all relative. Do what you understand best.

Related Posts

like

When my portfolio was going nuts 🚀💰 made over $100k profit last year and on same process this year.

Post Photo
like

Has anyone activated the “pay over time” feature for the Amex platinum?

like

Who here has invested or looked into RHOC (Rchain) as a long term investment ? Why or why not ?

like

Does anyone know how does the supplemental income work for new CAs?

Can I live comfortably in Dubai on 25k a month? With wife and kid too?

like

Anyone willing to share what assets they're investing in with the extra money from being overemployed?

like

Is Estate taxes usually significantly tested on REG? Just wondering since it’s going to get eliminated for exams post July 2021

like

What percentage of your monthly pay do you invest in the stock market? Complete noob trying to get started with investing. I already max out 401k and have a rainy day find in place.

like

Anyone have fee based fiduciary financial advisors they’d recommend? TIA!

like

Potentially dumb question here: I am starting law school soon and will not be employed (net income of $0 assuming I don’t get a good summer internship next summer). Does it make sense for me to sell my personal investments next year (assuming my income will still be zero) so I’m paying a 0% capital gains tax rate? I’d just rebuy all of the same stocks immediately… am I missing something?

like

Any investment ideas outside of the stock market? Considering farmland but wondering about other options

like

Sad that I missed out on this deal 😭 brand new & tax free

Post Photo
like

Has anyone been told they need 25% down for a vacation home?

like

Anyone still holding up those stocks? Chances of regaining the momentum in the near future?

like

This slow and steady stop is a little scary.

Long time advocate getting a little nervous. Believe in technology, but have no idea what my true investment worth will be by year end.

like

Should I Refi? Currently on a 15 year at 2.75% origination of loan was last year (2020). Potential new loan would be 10 year at 1.99%. Remaining loan balance around $160K. Current P&I $1,202 vs New P&I around $1,380 + ~$1200 closing costs/fees, worth it?

like

Hey, i am looking to invest 25-40k where i can easily make 7-12% of return. I am looking for things like rd which have very low risk appetite. I will be using this collected amount to invest in stock market when stocks are made available at very cheap prices...

I feel like I've been living under a rock for ~5 yrs. I was happy and blowing off money with the thinking that I'll start saving once I start earning more.

Just realised that could've started early. I'm in mid 20s and thinking about investment. Tried watching YouTube videos. But I have pretty basic questions :
1. Where do I even start?
2. What %age of income should I invest?

I hope I'm not late.

like

Recommendations for a good auto lender in NJ area? Looking to buy/lease a car

like

More Posts

Me: 4.5 years in audit, Big 4, interviewed and accepted an offer in industry. You can let me know if your background differs and I can help tailor my responses to you.

like

Turned on the "open to work" flag on LinkedIn and the recruiter messages have already increased in quality & quantity after one day. Highly recommend.

likehelpful

Bain & Company Hi, what is the typical hiring process for Bain & Co India practice, for the Consultant level? What are the tips and things I should keep in mind to easily crack the interview? Bain & Company

like

How much does an operations specialist make for Kaiser Permanente?

I hear the waves are supposed to be 5ft tall at some beaches on Monday...anyone planning on surfing? Not sure I'm strong enough to handle water that rough

like

Hi all..what is expected salary for Senior wid 4yrs YOE in ey gds?

like

Hey all, can you pls recommend resources to get up to speed on Fraud and Risk management for Payments in fintech? Books /sites? I’m not in consulting anymore so no access to internal decks. Thanks!

like

First day as scrum master and for a new team, any tips? I’m not used to gathering a team that’s 100% remote and am trying to figure out creative ways to get the team engaged.

like

Does anyone know what’s the compensation (base + bonus) for mid tenured one level below partner role (Assoc partner, director, etc) at MBB or T2 in Tokyo, Japan? TiA

like

It’s hard to be motivated when rounds of layoffs happen and you see all your friends leave. But one thing that’s gotten me through all of this is working out. And when I say workout I mean the most pathetic, sad, barely completed beginner-level cardio dance routines. I’ve somehow forced myself to move while on lockdown and it’s somehow forced me to feel better. Whatever you’re doing, wherever you are: get up and move even if you don’t finish or end up going on a walk. Pls take care of yourself❤️

like

I’m relocating to the Charlotte area soon and looking for a new leadership role (hybrid/remote/onsite). I have over 12 years of experience in corporate management around Supply Chain, Asset Protection, and Project Management. Thank you for your recommendations and referrals in advance 😊

like

Anyone down to play tennis in Frisco/Plano?

like

Hi everyone. I was a solution engineer at Oracle. I graduated from college in May and this was my first job out of college so the lay offs were pretty rough. I majored in Supply chain management and I have 2 internships under my belt. Do you guys have any advice or tips on what to do moving forward? I would like to stay in tech and I’m giving it a few weeks before I start pivoting to more traditional supply chain roles. Thanks.

likesmart

Have you ever regretted taking a manager role? The pay increase is tempting but I just love my job so much I’m not sure if it’s worth giving it up

like

Curious about what kind of hobbies other engineers have, personally I love knitting in my free time

likeupliftingfunny

Is it ever actually a problem for engineers in other parts of the world that US measurements are done in the imperial system?

like

Hello, who can help me?
I am interested in knowing how much an oilfield engineer earns. I currently have a job offer from a medium-sized company, but as a recent graduate, I don't know if the pay is adequate.

like

Anyone with two full time roles run into the issue of having conflicting meetings? What do you do?

like

I’ve done PI work my entire career for over 10 years. I’ve worked in state and federal courts and I’ve traveled around the country doing MDL work and bellwether trials. I’ve had a lot of success making the idiots I’ve worked for wealthy, but I’m still waiting for a moment where I enjoy what I’m doing. I feel stuck working in dysfunctional plaintiff firms/cultures. I hate this profession/career more and more each year. Has anybody been successful breaking off on their own in recent years? Advice?

like

Additional Posts in Personal Investment Chatter

What applications do you use to view all of your investments in one place if you have multiple brokers / brokerage accounts?

like

Is the Citi gold bonus offer of $1.5k worth the hassle of opening a new account and transferring $200k?

like

Straw poll: % of gold in your portfolios. If you have, any plans to sell? If not, any plans to buy?

like

Forgive me if this is a stupid question- but if Trump bails out Oil and Gas companies, could Chesapeake be a steal at 17 cents?

like

Thoughts on brk.b for long term? Thinking of getting in at this point.

like

Should I Refi? Currently on a 15 year at 2.75% origination of loan was last year (2020). Potential new loan would be 10 year at 1.99%. Remaining loan balance around $160K. Current P&I $1,202 vs New P&I around $1,380 + ~$1200 closing costs/fees, worth it?

like

A very privileged question, but do any of you expect significant inheritance? And if so, how has that affected your retirement planning?

like

What are your favorite personal finance books? I just read Rich Habits and really liked it. I am also reading the Psychology of Money. Looking to read some more!

like

Best indexes or ETFs to buy today? Y'all recommend the VTI or VOO?

like

Hey guys - Need some advice on my allocation. Consider unclassified as VTI. I know I have a lot more cash than needed for 6 months of emergency fund. But I don’t want to invest it all in index funds..

Post Photo
like

Thoughts on investing in DISney ? Better to go in as a stock or via ETF exposure?

like

What are your thoughts on a 200k cryptocurrency investment?

likefunny

Is it financially irresponsible to buy a home that requires you to divert what you’re currently saving / investing monthly to pay the mortgage?

like

I’d like to buy indexes of certain sectors right now, any suggestions? E.g. tech, utilities- others I expect to not be hit as hard

like

Just passed $1m net worth and thinking about umbrella insurance. Any recs for carriers/strategy?

like

I’m 26 and have ~40k sitting in my savings account. Annual income 140k. Maxing out 401k. No debt. Planning to invest 25k but don’t know where to start. Should I get a wealth manager? What is the best way to approach this?

like

🐟 - I rolled over $100K from old employer 401K to Fidelity Rollover IRA. What implications does it have on my ability to do backdoor IRA? We do not qualify for Roth due to income limits. TIA.

like

I don’t get why even the most reputable financial news still try to attribute market moves to people. It’s not individual investors who are in control of day-to-day moves anymore, it’s algorithms.

like

My company just announced that they will stop matching for the 401K until 2021 (sigh). Do you think I should lower my investment percentage to get more liquid assets that I can use for buying an investment property at the end of the year and extra funds available for school as I return for masters? Or is there a better way to get returns?

likesmart

VUG or VOOG for long term Roth IRA? 24 years old fwiw. I recognize that I am younger and also have plenty of individual stocks in my regular brokerage account

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal