Stock/commodities Discussion

Also, yes in the stock market if you are getting a 4.5% rate of return, like on an S&P 500, that is really good growth. Real Estate has more rapid growth. In fact if you don't get at least 50% after 7 years or 7% rate of return, your property is not giving you a good return on investment. I can speak on this I have an MBA .
Dude your MBA seems to have failed you a bit.

First: Real estate has never had better growth than equities. It always trails equities by some percentage.

Second: Getting a 4.5% annual return out of stocks in mid-to-long term is considered a very poor performance. You might as well buy bonds and not bother with stocks.

Third: Getting a 7% return from true rental properties (not speculative ones) is almost unheard of these days. Unlike stocks, you can't add the potential selling price of a property to its annual returns. That's not how rental investment works.
 
I would likes to see all your math. maintenance vacancies, taxes, insurance. cleaning fees. attorney fees.
It's safe to say in this day and age, in most parts of the modern world, it's impossible to make a net-return from buying a residential property at market price and renting it out.

The rent-to-price ratio has widened a lot because of stagnating wages and endless property bubbles almost everywhere. The rents charged by landlords rarely cover the expenses of the property, let alone providing a profit.

Best way to bet on real-estate these days is REITs. They provide a nice return because of their previous investments and massive purchasing power and backdoor deals. Who wants to deal with annoying tenants when REITs give you better returns and are as liquid as cash?
 
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TeamMeli

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Feb 5, 2014
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Bache Tehroon jan
CM jan made a valid point and so did you about the rent-to-price ratio widened and wages have been stagnant. In Nevada, by law, you can only increase rent by 10% a year You don't get to feel the impact on the home or condo/town house you are in, you get to reap the benefit off of that second rental income property. In my home, I used to rent two rooms for $400 but now that is $550 so $300 extra/mo. For my 4 unit rental, I increased the rent from $500 a mo for 4 two brs to $600 so from $1950-2400 or $450. The extra $750/mo comes to an increase of $9000 annually, in rental income revenue. That is what is keeping me afloat.
According to this article if you are in a position to invest consider yourself very fortunate, over 70% of American's can't afford to buy a home, and the median savings last year for middle class Americans was about $11,000 for household income.The top 1% of households in the U.S. by income have a median savings of $1.1 million across a variety of saving accounts. The bottom 20% by income have no savings accounts and the second lowest 20% income earners have just $26,450 saved Most Americans cannot afford an unexpected $400 surprise bill. What we can agree on is diversify your portfolio, you don't need an MBA to know that. Have a combination of investments be it bonds, stocks(S&P 500 or individual stocks in 401K or Roth Ira) and income property. Find the formula that works for you as far as how much % you want to distribute.
https://www.marketwatch.com/story/brace-yourself-this-is-how-much-americas-1-has-saved-2018-08-24
https://www.cbsnews.com/news/housin...t-afford-a-home-in-70-percent-of-the-country/
 
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Feb 4, 2005
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Zobijan I hope by "sold" you mean the exclusive positions you had for trading (gambling) not everything you had in the broad market. You do hold some sort of a Nasdaq fund right?
Not really into funds and ETFs but I have a couple of funds in an old 401K that probably hold Apple and Tesla but unfortunately I sold my Apple and Tesla stocks a bit too soon. Apple I had bought years ago for dirt cheap but tesla just a while ago. I feel more bad about the apple because it just had been sitting there for years but Tesla I bought for trading as I had done many times before.
 
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On a day that the entire market is down, Amazon is up by 10%! It has broken the record for the biggest market-cap gain in a single day in history. It's officially in the $1 trillion club now.

Many Amazon employees have made more money with their stock options than their entire year's salary in the past 12 months.