We are thinking of investing into either property or buying more stocks. But recently i have seen couple of friends buying investment properties. What do think which oen is better way to invest? Specially in Seattle!
I would not invest in residential real estate in Seattle, and given the current situation, would avoid commercial real estate until there are clear signs that the situation in the city has bottomed out. Look towards the suburbs or other cities, Duvall, Renton, Olympia, etc.
Real estate is the worst type of "investment", ever. It may be ok if you want to speculate, but then it's very risky, just like day trading.
This is what i agree with but people prove me wrong when they buy more properties than stocks
If you buy a cash flow property that you don’t make money on appreciation but on the difference between the rent and the expenses it isn’t really that speculative. Plus try finding another investment you can get a super low interest rate from the bank on.
There is a big difference, with one you buy using leverage, done well it will out perform stocks but with a higher hassle factor.
Can you please point out hassle factors? In last year’s Seattle properties are appraised more than expected and buying selling is smooth process as well
Yeah, buying for living is great but managing a property is bound to have headaches in the long run, especially with multiple properties.
The barriers to entry in Real Estate (high upfront cost to get in, transaction friction) make owning real estate more valuable in the long run. Understand the following: they don’t make any more land, population continues to increase, tax sheltering/benefits, and levering the assets.
Depends on individual. How much efforts are you willing to put to manage the rental ? How hands on/off are you with property management ? Real estate,if made the right purchase, can really grow your wealth exponentially with the power of leverage unlike stocks. Also, Seattle housing market can weather most downturns unlike the volatility in stocks. If you find a cash flow deal where rents keep steadily going up over last decade and so does the appreciation of the property, jump on it. After 2020 recession, what everyone in the US learnt is the way to build wealth is stocks and real-estate. Be well diversified, equally invested in stocks, primary home, secondary home, cryptos, index funds and you will be just fine in the long run.
Seattle proper is very much not landlord friendly