/biz/ - Business & Finance

>>15656522
Real estate is your only option. It's not guaranteed, but you can make 5%+ a year easily in most areas, even without leverage.

>>15656773
However, if you need access to the money in 3-5 years, you're out of luck, the market can drop on you and then you can't pull any cash out. So keep that in mind.

>>15656773
You can do the same and better with index funds while keeping you money more liquid. Normie estate is a meme unless you own buildings.

>>15656522
coins on nexo.com or crypto.com

>>15656789
Honestly this.
5% returns are pretty low and easily the most feasable kind of passive income outside of good old bank interest accounts.
You can easily double your money in ventures though, so passive income at 5% is only used as a store of value kind of thing to keep your shekels above inflation.

>>15656789
Index funds don't guarantee a 5-10% return like real estate does, and the tax benefits are much worse.

USA has had a massive bull run since the 90s. You can't expect a repeat. However in real estate, a floor on wages, material prices, etc.. supports your rental income. As long as you can find well qualified tenants, you will receive your 5-10% of the property's value in income every year.

Of course, don't expect 5-10% in San Francisco, Manhattan, etc..

>>15656874
Have you taken into account all the different taxes you expose yourself to with estate (there is more than one and depends on your country obv), realtor fee, inflation, interest rates, maintenance, occupancy rate (if you're renting, and then you're taxed on that too), also the time you take to find deals.

Value wise it took 5 years if you bought the top in 2007 to break even (compounding not taken into account).

I'm being serious, really interested if someone can give me pros for real estate.
I live in a euro capital city and from the meme projections I did you barely earn anything if at all if you sell in the first decades of ownership.

>>15656961
>Value wise it took 5 years if you bought the top in 2007 to break even (compounding not taken into account).
Quickly glancing at snp500

>>15656961
Inflation is a benefit, you can raise rents, and your property is worth more.

Realtor fees can be reduced especially if you have a real estate license (this will help you access the MLS and find deals, hopefully you can get to them before other agents/brokers). Last year I made an additional 38K as a part-time agent. Will prob be another 40-50K. The additional income also helps for loan qualification.

Yes you are taxed on rental income, but you can also use it to qualify for more loans. Your 2% in stock dividends (if you're lucky) will not help you in that regard.

Interest rates are at all time lows. If you have great credit, you can get into deals with a 3.6%-4% interest rates. So if your property is yielding 6-8%+, the 5-10% of vacancies shouldn't bother you. Personally, my occupancy rate is >95%, since I'm in the industry and can fill my places quickly.

Typically my criteria for investment is 8%+ projected net operating income / acquisition cost. I also make sure what I put into the property is <80% of the after repair value based on comps from recent sales.

So I instantly make 20%+, even if I we're to sell and pay 6-7% of fees, I'm up 13%+ on day 1, and the investment yields 8% + appreciation.

Now keep in mind, deals like these are extremely hard to find for beginners, especially in this market. My first property, I found after actively searching for 8 months, but I was into it after repairs/upgrades/ for 260K, and it was worth $380K. Then I rented it out for $2100/mo, until I could find a buyer. Sold for 430K like 2 years later.

Personally, I don't think you can make profits like this in stocks with such low risk. In real estate, you can look at comps to establish a margin of safety. For me it's 20%+, I won't buy a property without a 20% discount to what I believe I can sell it for after repairs. You can go ahead and sell the property when it doesn't meet your minimum threshold for yield, say 6.5% (it depends on the property).

>>15657132
Just to add, you can avoid taxes on appreciation with a 1031 exchange, that means you roll the equity from your previous property into a new one, and you defer paying taxes until the next time you sell.

So basically you can get millions in appreciation without paying a single cent of taxes on appreciation. When your kids inherit your estate, they will get a step up in tax basis, so the potential taxes from selling the properties evaporate when you die.

Not only that, but you can write off any home improvement expenses, maintenance, office expenses and the government won't bat an eye.

>>15656522

I've made 10% this week on 2 trades, I wouldn't know how to go that slow.

>>15657132
>>15657154
I read that in Stephan Graham's voice.

Anyway interesting read, I'll meditate on this. I wish there were more distilled info like this for the Euro market.

>>15656522
Signup to become a moderator on Pledgecamp, stake your PLG, and just collect a percentage of the listing fees forever.

https://medium.com/pledgecamp/become-a-moderator-a0f310905f53

>>15656522
Just suck dicks anon

>>15658149
this or sell drugs. bj's have far lower start up costs

>>15656522
>Buy COSS
>hold COSS
>collect ~8% in free money every year

>>15656522
celsius network give 3-12% apr and pay weekly