Quote:
Originally Posted by fflmaster
Just thinking this thru
If I was making the same net via rental on a house that is virtually guaranteed to increase over enough time and leaving my money in the bond, I would take the property every day of the year.
Second part, the villages may be building new properties for the next 20 years. But, will they be exactly where someone may want to be? Or will they be in the correct price range? What if the housing starts to increase? I know you don’t think it will. You could be right or we could see a jump in prices 2027/28. We only know what pricing is today. I know in my area home pricing continues to increase in value year after year. Even in today’s market.
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Maybe I didn't make it clear that my example of a 5 percent return included selling both the bond and the rental house at the end of a specified time period and then calculating the total return on both investments. If you only make 5 percent per year on the rental house, all of your work effort and risk was wasted. But some people will consider the rental house to be a success.