Is the active communty getting smaller?

#101

You rent out the older properties, e.g. one house I rented I got 150% of purchase price as income over 10 years.

It does take time and you have to begin early, the luckiest people have richer parents to get them started.

The tax rules mean you buy a house, live in it, then buy next and rent the previous out. Repeat and when you stop working then see if you need to sell any houses. There’s plenty who own whole streets renting out.

Democracy being what it is means landlords fund parties who don’t do anything, and of course local elections don’t like lots of new house build, so prices go up to profit the local landlords.

And so the world is explained.

#102

This is what we did.

When my wife and I bought our house she rented her flat and I mine.
With that income we payed our mortgage from that house.
When this house was dept free we bought the next one an financed it the same way.
But this was long time ago.
Now for me it seems young folks can not do this or as you said : rich parents or heritage.

BUT you have to find such objects, which is pretty hard.
The bargains are often divorces (ours was)
Sad story for the owners,

That’s it but that’s politics! :laughing:

And never forget “space” is limited in preferable places.

#103

Clever. While I don’t know your circumstances, I’d have possibly not waited for debt free 2nd home, borrowed against it and bought the last one earlier and so at less cost. Typical interest rate is less than house price inflation so debt works for you.

#104

Exactly.
But the most important aspect is to find an object.

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Very important is to agree by contract so called special repayment.

#105

Sometimes. And then sometimes you have 2008-2011.

Prices can’t rise faster than inflation forever - at some point the merry go round stops when new people can’t afford to get on.

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#106

Yep.

Counting on it.

#107

Yeah, our house is just over 2000 sq. ft. on a tiny lot. Because our lot is so small, the house is technically considered a detached condo. We paid over $600k and we’re putting in another $50k in upgrades. It pains to tear the house apart when it’s a brand new build, but doing it this way was MUCH CHEAPER than letting the builders do the upgrades (it’s a planned community, so our options were very limited). For example, we wanted luxury vinyl planks for our floors. Builder wanted $19,000 to upgrade from carpet. We paid $9000 to remove the carpet and install the LVP, and the LVP we chose was better quality than what the builder could do. Kitchen cabinet upgrade was $9000 by the builders. We just got basic cabinets instead. Then we paid $6000 through our contractor, and we got to repurpose the basic kitchen cabinets in the laundry room and the garage.

But this is considered “cheap” for southern California since I’m in the Inland Empire. Similar homes in Orange County would have cost over $1 million.

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