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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (68498)	8/31/2021 4:19:15 PM
From: bruwin	Read Replies (1) \| Respond to of 78954

"Curious - what's a normal rental yield compared to the purchase price ?" What I'm after in investing in Rentable Property is Security in Future Income. Comparing that to entirely investing in Securities ignores the "risk" factor in securities and the fact that Rentals from properties in sought after areas, where maintenance costs for apartments are low and rentals can, generally, be increased a fair way ahead of Inflation. There will always be young, married professionals who will seek accommodation in areas that suit their requirements in terms of convenience to their work place and their social life styles. Yes, there may be REITS that one can invest in but who knows if "O" will be there "tomorrow" .... maybe some "lame brain" takes over the CEO reigns and the stock tanks. I'd rather be the master of my own property ownership destiny than leave it in the hands of a 3rd party. No one is more concerned about your money and your investments than you are yourself. In addition, maybe the Market as a whole has another 2001 or 2008 or 2020 experience when "panic" and related "bad" sell decisions can take place ..... Hindsight, as they say, is "an exact science". Unfortunately it's often the case that during the period when the Market as a whole "tanks" such "philosophical" musing goes out the window ...... It's all very well to refer to a percentage increase that you believe can be obtained from stocks on an ongoing, regular basis, but that's not necessarily an ongoing certainty, especially if virtually ALL your capital is being placed on that "bet". None of us has a "Crystal Ball" that will inform us as to which sectors of the market will find favour and be lucrative, which stocks will continue to be well managed and thereby profitable, how Monetary Policy will affect currencies and the financial sectors, etc, etc,... BUT one thing is for sure, people will ALWAYS need a place to stay and have a roof over their heads, and the more advantageously placed that accommodation is the more likely it will be rented out and provide a secure future income. Obviously that doesn't mean that one cannot continue to invest in stocks .... I do it all the time, in my own way, and take a portion of the capital gains and invest it further into rentable property with low maintenance. I generally enter into a minimum 2 year lease with a tenant with a built-in percentage increase in their monthly rental after 12 months. It's not often that major external problems last longer than about 2 years before there is "light on the horizon".