LogFAQs > #986321058

Payzmaykr posted...

Property/housing. Our current structure has things worked out to where most of us will be paying extortionate rent prices for life. I guess rent wouldnt matter if I had that much money, but putting thousands of dollars into a slumlords pocket really doesnt sit well with me.

If you're not paying high rent, then you're going to be paying high property taxes, and high HOA/maintenance costs in nice neighborhoods/areas.

The alternative is to build a mansion in the middle of nowhere -- which also has its risks/disadvantages.

Lastly, OWNING a large rental property also sucks. If you're not spending all of your time maintaining the property, then you're hiring a property manager to do it for you. In the end, you're earning 1.5-5% annually on those properties. That is why most billionaires have most of their investments in stocks/bonds, and not rental properties.

The ideal rental properties for investments are 1-3 family homes and townhouses -- which is why you private equity firms buying up a ton of them over the past few years. The problem, again, is that they're going to have to hire hundreds of property managers to maintain all of those places spread out across the country.