Many good points in your analysis, but am I to understand that you want to take away tax rules that apply to every other business/employer? Have you considered that real estate investing is like every other business with real costs of doing business that should be deductible? Should Boeing not be able to depreciate the cost of their very expensive manufacturing facilities? Under your scenario, no business with real hard costs would survive in the united states.
Have you ever considered the fact that institutional investors (hedge funds/big banks) are buying up real estate at unprecedented levels because our government is allowing them to borrow money at virtually no cost? The small investor does not have that ability. Perhaps more realistic loan terms would solve this problem and keep the keep the reckless institutions in their own lane. As interest rate rise to normal levels, I suspect that the institutions will run from this business and leave scorched earth in their wake. Let's wait and see which one of us is right. I, for one, am getting out and selling to institutional investors, as we speak, and intend to go back in and mop up the mess that they leave in their wake.
Consider this: without landlords, many, who cannot afford to buy a house, at any price, will add to homeless count.
Many good points in you analysis, but am I to understand that you want to take away tax rules that apply to every other business/employer? Have you considered that real estate investing is like every other business with real costs of doing business that should be deductible? Should Boeing not be able to depreciate the cost of their very expensive manufacturing facilities? Under you scenario, no business with real hard costs would survive in the united states. Have you ever considered the fact that institutional investors (hedge funds/big banks) are buying up real estate at unprecedented levels because our government is allowing them to borrow money at virtually no cost? The small investor does not have that ability. Perhaps more realistic loan terms would solve this problem and keep the keep the reckless institutions in their own lane. As interest rate rise to normal levels, I suspect that the institutions will run from this business and leave scorched earth in their wake. Let's wait and see which one of us is right. I, for one, am getting out and selling to institutional investors, as we speak, and intend to go back in and mop up the mess that they leave in their wake. Consider this: without landlords, many, who cannot afford to buy a house, at any price, will add to homeless count.
John this was very insightful as was your article on 2020 home prices being at 50y lows when adjusted. I was wondering if you do any multi-family analysis. I’m a Chicago landlord debating whether I should still be increasing my holdings as interest rates rise.
I like the insight, but don't necessarily agree with the conclusion. I invest in many single family homes and know many other investors who do the same. We make our buying decisions based on the costs of the rental home versus the rents we receive. I would venture to say that for most of us, the tax break at the end is just a nice little cherry on top and not what pushes any of us to initially invest. However, maybe the institutional buyers are banking on the tax break... I doubt it, but it could be part of their decision to buy.
Many good points in your analysis, but am I to understand that you want to take away tax rules that apply to every other business/employer? Have you considered that real estate investing is like every other business with real costs of doing business that should be deductible? Should Boeing not be able to depreciate the cost of their very expensive manufacturing facilities? Under your scenario, no business with real hard costs would survive in the united states.
Have you ever considered the fact that institutional investors (hedge funds/big banks) are buying up real estate at unprecedented levels because our government is allowing them to borrow money at virtually no cost? The small investor does not have that ability. Perhaps more realistic loan terms would solve this problem and keep the keep the reckless institutions in their own lane. As interest rate rise to normal levels, I suspect that the institutions will run from this business and leave scorched earth in their wake. Let's wait and see which one of us is right. I, for one, am getting out and selling to institutional investors, as we speak, and intend to go back in and mop up the mess that they leave in their wake.
Consider this: without landlords, many, who cannot afford to buy a house, at any price, will add to homeless count.
Many good points in you analysis, but am I to understand that you want to take away tax rules that apply to every other business/employer? Have you considered that real estate investing is like every other business with real costs of doing business that should be deductible? Should Boeing not be able to depreciate the cost of their very expensive manufacturing facilities? Under you scenario, no business with real hard costs would survive in the united states. Have you ever considered the fact that institutional investors (hedge funds/big banks) are buying up real estate at unprecedented levels because our government is allowing them to borrow money at virtually no cost? The small investor does not have that ability. Perhaps more realistic loan terms would solve this problem and keep the keep the reckless institutions in their own lane. As interest rate rise to normal levels, I suspect that the institutions will run from this business and leave scorched earth in their wake. Let's wait and see which one of us is right. I, for one, am getting out and selling to institutional investors, as we speak, and intend to go back in and mop up the mess that they leave in their wake. Consider this: without landlords, many, who cannot afford to buy a house, at any price, will add to homeless count.
John this was very insightful as was your article on 2020 home prices being at 50y lows when adjusted. I was wondering if you do any multi-family analysis. I’m a Chicago landlord debating whether I should still be increasing my holdings as interest rates rise.
I like the insight, but don't necessarily agree with the conclusion. I invest in many single family homes and know many other investors who do the same. We make our buying decisions based on the costs of the rental home versus the rents we receive. I would venture to say that for most of us, the tax break at the end is just a nice little cherry on top and not what pushes any of us to initially invest. However, maybe the institutional buyers are banking on the tax break... I doubt it, but it could be part of their decision to buy.