April 26, 20223 yr 19 minutes ago, JohnSnowsHair said: Where can you buy a rental property for $40k? I'm purchasing a small townhome here in bucks county and it's $250k. You can't. I assume he meant to put down and close on a (relatively) inexpensive house and rent it out. Doesn't seem to make much sense in today's market though. I just sold a rental home and I'll probably put the other up. The amount of money people are willing to pay right now is absolutely insane.
April 26, 20223 yr I expect rate increases to screw me. I figure this place will be worth less in six months. It's a long term hold though. Probably will be the last rental I buy.
April 26, 20223 yr 33 minutes ago, JohnSnowsHair said: Where can you buy a rental property for $40k? I'm purchasing a small townhome here in bucks county and it's $250k. Mortgage duh
April 26, 20223 yr 53 minutes ago, ToastJenkins said: Mortgage duh So the $40k is the down payment on a $200k property (assuming you can get that LTV on a rental) which you might realize $1500/mo in income against a monthly outlay of say $1200 for P&I plus insurance and taxes, along with the overhead of managing a rental. Or an easy and guaranteed short term return of 8% with no overhead. Neither are necessarily bad, but both have a place in a diversified portfolio. I sure as hell wouldn't want all my cash tied up in illiquid properties, and I say that as a soon to be owner of three rentals.
April 26, 20223 yr Ignored capital appreciation and tax deductions but sure. I suspect the rent would be higher. point being if you are going to be illiquid a bond a terrible option. I dont do rentals bc i lack the time and expertise to do the maintainence myself
April 27, 20223 yr 4 hours ago, Paul852 said: TJ: Your assets need to be liquid Also TJ: Use that 40k to buy a rental property you gotta feel for the guy though, he tries so hard
April 27, 20223 yr Keep buying bonds out there in BFE….even worse than indiana 😄 Yall can feel free to invest like a senior citizen. Just dont complain when you are old and poor.
April 27, 20223 yr 16 minutes ago, ToastJenkins said: Keep buying bonds out there in BFE….even worse than indiana 😄 Yall can feel free to invest like a senior citizen. Just dont complain when you are old and poor. Yeah, poor people are known to drop 40k on bonds. Get it straight, we're upper middle class.
April 27, 20223 yr Historically, in my lifetime at least, bond yields have been pitiful. So low that even if your risk tolerance is high returns aren't worth it. They've been so low for so long it seems like you're locked into this mindset that bonds are to be avoided at all costs. The yield on I-Bonds right now though is very different than any other bond. I wouldn't put all my cash in, but in the current market with real estate still being hot (for how long at these borrowing rates remains to be seen) and the market likely looking at at best a mediocre year, an I bond makes a lot of sense if you're not looking to be locked into managing a long term rental. To be sure the I-bond is the only bond I've even thought about buying since I've had money to put to work. Rentals are a good way to diversify a portfolio, but I definitely wouldn't suggest it to someone who wasn't prepared for what's involved. And while a bond will hold your money for a while, the same goes for a rental so I don't really understand the liquidity argument. Rates are also over 5% for a 30 year fixed, even if your credit is over 800 and you're putting 50% down (I know this. Unfortunately.) Regarding capital appreciation for rentals, that also really depends. In residential, condos and townhomes have been the easiest in my experience to rent. Condos and townhomes also tend to appreciate less than single family homes. The value also isn't as responsive to improvements. Construction dollars into a single family home realize much more value than dollars into a townhome/condo. You might do alright at a sheriff's sale, though you need to be prepared to pay cash. Philly has the most inventory there for that, but I want no parts of a rental in Philly, the overhead is massive and eviction is a nightmare. Buying an investment property in an overheated market vs an I-bond whose only buyer concession is that the gov't holds those dollars for a year is a weird argument to make. I fully understand the long term advantages of owning investment properties, but as you said yourself successful landlording on a small scale requires time and abilities from the owner, or a willingness to run in the red for a while if you outsource those responsibilities to a property management company. And while rents have gone up, $1500/mo for a property worth $200k is fairly reasonable at least here in Bucks county. I wouldn't even be buying this current property if there weren't specific circumstances that made it worthwhile. If you're looking for rentals in a market where buyers are putting in offers 5-10% over asking price while waiving inspections just to get offers accepted, you're going to have a bad time. I won't even touch commercial rentals.
April 27, 20223 yr Tired of being poor? Just follow your bliss. This works 100% of the time, nearly always.
May 10, 20223 yr Big Oil seems to be doing juuuuuust fine. Quote Shell reports record $9.1 billion profit as oil prices soar in first-quarter LONDON — Energy giant Shell reported record first-quarter earnings after a surge in oil prices, fueling calls for the British government to impose a tax on energy companies’ windfall earnings to help consumers struggling with the soaring cost of living. London-based Shell said adjusted earnings – which exclude one-time items and fluctuations in the value of inventories – rose to $9.1 billion from $3.2 billion in the same period last year. That beat analyst expectations of $8.2 billion. High oil and gas prices, partly due to uncertainty about supplies from Russia, are boosting the profits of major energy companies and feeding inflation around the world. In Britain, where households face the biggest drop in living standards on record, that has triggered demands for a special tax on energy company earnings to help consumers. Prime Minister Boris Johnson on Wednesday rejected calls for a windfall profits tax, saying it would reduce investment in Britain just as the country is trying to diversify its energy industry and increase production from renewable sources. But opposition parties stepped up pressure after Shell’s earnings report. The government’s "refusal to tax the super-profits of energy companies is completely unforgivable when people are too terrified to heat their homes,” said Ed Davey, leader of the Liberal Democrats. "This one-off levy would raise billions of pounds that could help vulnerable families with their energy bills now. It is a no-brainer.” Brent crude, a benchmark for global oil prices, averaged $102.23 a barrel during the first quarter, 67% higher than during the same period last year. The British media is filled with stories about people forced to skip meals or go into debt as they struggle to heat their homes after a 54% increase in household energy prices took effect April 1. Even before those increases, inflation accelerated to a 30-year high of 7% in March. Shell rival BP on Tuesday reported its highest quarterly profit in more than a decade. The London-based company said adjusted earnings rose to $6.2 billion in the first quarter, from $2.6 billion in the same period last year. Michael Hewson, chief market analyst at CMC Markets UK, criticized politicians for "grandstanding” with calls for a windfall profits tax, pointing out that Shell last month announced plans to invest $31 billion in renewable energy in the U.K. BP made a commitment to invest $22.2 billion in U.K. energy this week. "That’s a lot more than a windfall tax would raise and would probably be better spent,” Hewson said. Exxon:As gas prices soared, Exxon Mobil doubled profits from last year to $5.48 billion Shell said Thursday that it would take a $3.9 billion charge to cover the cost of exiting investments in Russia, which it pledged to do after the invasion of Ukraine. First-quarter net income, which includes such one-time items, rose to $7.3 billion from $5.8 billion in the same period last year. "The war in Ukraine is first and foremost a human tragedy, but it has also caused significant disruption to global energy markets and has shown that secure, reliable and affordable energy simply cannot be taken for granted,” CEO Ben van Beurden said in a statement. "We have been engaging with governments, our customers and suppliers to work through the challenging implications and provide support and solutions where we can.” https://www.usatoday.com/story/money/2022/05/07/shell-record-proft-oil-prices-soar/9686569002/
May 10, 20223 yr 10 minutes ago, mayanh8 said: I have no idea what this means. I think it means inflation isn't expected to continue to be this high beyond the next year or two? If so, hope everyone bought their i-bonds when they had the chance.
May 10, 20223 yr Congratulations Pop Pop on setting a new record, highest ever recorded average gas price. We couldn’t have done it without you. https://gasprices.aaa.com
May 10, 20223 yr From the reactions it appears this means expectations are that inflation will drop. But I dunno on what timeframe. Out of my depth.
May 10, 20223 yr 29 minutes ago, JohnSnowsHair said: From the reactions it appears this means expectations are that inflation will drop. But I dunno on what timeframe. Out of my depth. At least you understand your limitations now. I still remember you and @dawkins4prez having an aneurysm when I said this kind of inflation wasn't normal when it began a year and a half ago. Good times.
May 10, 20223 yr 1 minute ago, Kz! said: At least you understand your limitations now. I still remember you and @dawkins4prez having an aneurysm when I said this kind of inflation wasn't normal when it began a year and a half ago. Good times. So, December 2020? Thanks, Trump!
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