好东西要和大家分享！

嘁哩喀喳

我收到的网友来信：

“顶起，就是因为你这样深入的引入分析，才使得我女朋友看清了那群sb。再没去召会了，万分感谢。”。

嘁哩喀喳

时间：2013-03-06 15:47

天地

jamesmith

天地 发表于 2013-4-8 02:21 AM

lol...you are here too~~

天地

jamesmith 发表于 2013-4-29 06:52 PM
lol...you are here too~~

how is the rental, they pay on time so far?

jamesmith

天地 发表于 2013-4-29 08:54 PM
how is the rental, they pay on time so far?

Yes, so far so good. Thinking about if I should get another one...interest rate is around 3.4% for 30 years around my area, people are fighting for houses...very attractive...
But if I purchase another real estate...Debt level will be high and I won't have money in stocks...

What about you? How's everything lately?

天地

jamesmith 发表于 2013-4-30 08:09 AM
Yes, so far so good. Thinking about if I should get another one...interest rate is around 3.4% for ...

fighting for houses? supply is so low? unreal:)...I am fighting, too, hehe

do it if the return is better than your stock investment, hard to predict the future % of value appreciation in real property though, but a lot more stable

jamesmith

天地 发表于 2013-4-30 09:38 AM
fighting for houses? supply is so low? unreal:)...I am fighting, too, hehe

do it if the return ...

in my naive model, I assume property value doesn't go up at all against inflation...and only count rental income return... and hope rental income goes up with inflation...
you are looking to buy another one too??

天地

jamesmith 发表于 2013-4-30 10:05 AM
in my naive model, I assume property value doesn't go up at all against inflation...and only count ...

guess value increase is location dependent,

to achieve attractive rental return one must leverage (take advantage of the current low interest rate), the more one borrows the better return in the long run

yes.

jamesmith

天地 发表于 2013-4-30 10:18 AM
guess value increase is location dependent,

to achieve attractive rental return one must lever ...

Agree! I like real estate because
1) low interest rate environment we are in
2) it is a leveraged position that is essentially shorting USD, and we can get tax benefits
3) relatively stable rental income of 5% to 10% of initial investment. Much better than buying a bond...

What I don't like is the return are not compounded, there's no good way to reinvest the my rental income back to the house and get same return rate of 5% to 10% as the initial investment...
After saving enough emergency fund, I can
1) repay mortgage with rental income, but return is only interest rate * 0.75. Which is roughly 2.6% to 3.2% depending on what interest rate you get...
2) invest the income somewhere else
3) save up to invest in another real estate to generate similar return...takes a long time though...