Incredible post. Thank you for it!
In general, however, you should not forget in this example that buying a house is only similarly profitable because you are working with high leverage here. Option 3 would be exciting: you take out a loan in the same amount as when buying a house and blow the capital into a global portfolio or dividend portfolio and then try to pay the rent with the return generated. Please refer to this.
In general, however, you should not forget in this example that buying a house is only similarly profitable because you are working with high leverage here. Option 3 would be exciting: you take out a loan in the same amount as when buying a house and blow the capital into a global portfolio or dividend portfolio and then try to pay the rent with the return generated. Please refer to this.
•
11
•
@cryptodaddy In this specific example, buying a house is significantly less profitable (at least if you consider realistic scenarios 5 and 6), or what exactly do you mean? The problem with option 3 would presumably be that the credit conditions for a global portfolio would be significantly worse and a loan of this amount would be much harder to obtain.
••
@cryptodaddy whereby the leverage becomes more interesting when you rent out the property you have bought ➡️ you generate returns on your account with borrowed capital.
•
11
•@Stefan_el_Huberto It's important to remember that buying a house for your own use is much more risky than buying a house to rent out. Unfortunately, most people think the opposite is true. Why? When I buy a house for my own use, I make a bet with the bank that I will always have a job that pays me well enough to pay off the loan every month and that there will be absolutely no other incidents. When buying a house to rent out, on the other hand, I bet that I will always find a tenant who will pay my repayments.
•
22
•