Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [investment-property]

62 questions
39
votes
7 answers

Why does Warren Buffett consider real estate as productive asset?

In the Berkshire Hathaway 2011 letter, Buffett said: My own preference – and you knew this was coming – is our third category: investment in productive assets, whether businesses, farms, or real estate. I fail to see how real estate produce…
PatrixCR
  • 501
  • 1
  • 4
  • 6
37
votes
5 answers

What would you do with a large land inheritance with high tax rate?

I just inherited a couple hundred acres of pristine woodland in New England. I'm a nature-lover, so my first impulse is to keep the land as-is, letting campers, trekkers, and wildlife just use it as they like. But the taxes are killing me. The taxes…
Teusz
  • 483
  • 4
  • 6
30
votes
5 answers

Why are residential investment properties owned by non-professional investors and not large corporations?

This question is relevant for Australia but I would think that it would apply to other countries too. I've noticed that nearly all residential investment properties are owned by non professional investors. What I mean by that is that the landlord is…
Joe.E
  • 6,098
  • 7
  • 40
  • 53
25
votes
10 answers

Why is property investment good if properties de-valuate over time?

So I was reading that investing in property is a safe and solid investment (but low on return). This is based on how the prices rise e.g. a property price in the 1980's vs 1990's vs 2000's vs 2015. To be honest I don't understand the rationale. If…
Jim
  • 351
  • 3
  • 6
23
votes
2 answers

Do home values typically rise and fall consistently across different price ranges?

Within the same city, as the market rises and falls, do cheap, average-priced, and expensive home values typically rise and fall at a similar percentage? For instance, all homes in the city rise about 20%, across the price range: 2010…
Village
  • 3,097
  • 5
  • 37
  • 48
22
votes
10 answers

Should I sell a 2nd home, or rent it out?

I have recently purchased a home which will presumably be my long-term residence. I have not yet sold my original home, and I am trying to decide whether I should rent it out, or sell it. The 1st home has a mortgage remaining of $175,000, with a 5/5…
Derek
  • 865
  • 1
  • 6
  • 13
11
votes
3 answers

How likely is it that a rental property can have a better ROI than stock market if I have to use a property management company?

I'm in the USA and have a good amount of money available to me and I'm willing to accept high risk when investing, as long as the ROI justifies it. I've toyed with buying a rental property, but I'm uncertain if it's worth looking into. I don't…
dsollen
  • 1,218
  • 10
  • 20
9
votes
4 answers

How much can I trust Zillow's "Zestimate" of my home's value?

My wife and I purchased a townhouse almost two years ago. I've signed up at Zillow to receive occasional (monthly?) "Home Report" emails which includes a "Zestimate" of my current home's value, as well as other info like nearby homes that are for…
Garrett Albright
  • 193
  • 4
9
votes
5 answers

What to bear in mind when considering a rental home as an investment?

I've been thinking about buying a second home and renting it out as an investment; a way to save and invest money for retirement. I know that many folks are putting money away in stocks and mutual funds, and I wanted to consider alternatives. The…
Vivian River
  • 790
  • 2
  • 7
  • 16
7
votes
2 answers

I am thinking of buying a property to split into 2. How do I determine the costs basis on the existing house?

This is a property on over 2 acres. I'd like to buy it, split the property and rent out the existing house. Then build myself a new house on the other portion of the property. How would I determine the cost basis of the existing house (and the split…
Ryan D
  • 71
  • 3
7
votes
5 answers

Frustrated Landlord

I bought a home in 2000 before I met my wife. I paid 50,000 for this property and it is now valued at triple that amount. We married and moved but I kept this property as an investment property. The tenant in the home has been there for 15 and has…
Ron
  • 71
  • 2
7
votes
2 answers

Is the seller of a property in the UK in a position to dictate what the buyer does with it?

I know very little about the housing market or mortgages (it's just not taught in school in the UK, whereas oxbow lakes and pathetic fallacy are), but within a year I should be able to get my foot on the property ladder. I've been getting ahead of…
MetallicHydrogen
  • 71
  • 1
6
votes
1 answer

I was paying my tenants' water usage without realising - how to recoup the money?

I live in Australia. I had some tenants living in my investment property for approximately 18 months (they moved out a few months ago). I have since sold the property and settlement is in a month. I had real estate agents managing the tenancy but…
LeopardSkinPillBoxHat
  • 443
  • 1
  • 4
  • 8
5
votes
2 answers

How is negative gearing a good thing?

In Australia investors buy investment properties that are negatively geared to save tax. A lot of articles on property investment say that one of the cons of having a positively geared property is you cannot claim tax deductions. For instance…
sukriti
  • 53
  • 3
4
votes
2 answers

Multiple Investment Properties under One Mortgage

I have been leveraging for a few years now and have managed to get a few mortgages on investment properties. All the properties perform very well, are income producing and have at least a 60-80 percent LTV ratio depending on the property. For a few…
DotNetRussell
  • 2,964
  • 21
  • 35
1
2 3 4 5