Why is residential property a good investment?

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I can’t really wrap my head around it, you can have a tenant in there that maybe covers the mortgage, but it’s not really a good investment if you’re not getting a return?

Even if you use 500k to buy a property cash, wouldn’t that money be better off in the market?

In: Economics

28 Answers

Anonymous 0 Comments

I have made more money with residential investments (one house at a time, rentals) than I ever did in the stock market.

What makes it a good investment is Mortgage interest is deductible (in the US.).
Rents bring in income beyond being employed.
Property tends to increase in value over time.

You can sell your lower cost income properties for more than you paid and invest in better properties over time. Over and over. Bad part is property taxes also increase and now flood and fire insurance is really over the top. $3000 more this year than last (florida).

Like you were 5, good investment grow over time and Residential properties (houses and homes) are usually good investments. I started with a no real down payment house for $20,000 (a dump) and leveraged that into our current rental at $325,000 if we sold it now. (over 25 years)

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