View Single Post
Old 03-28-2024, 06:18 PM   #30871
PeanutButter
I contribute to threads in the offtopic forum
 
PeanutButter's Avatar
 
Join Date: Jun 2013
Location: Burnaby
Posts: 2,626
Thanked 3,085 Times in 838 Posts
Failed 412 Times in 112 Posts
Quote:
Originally Posted by Manic! View Post
Are you losing really losing $600 a month or are you just converting it to a different asset. If I bought $600 in gold I would not look at it as I lost $600.
$600 in gold is different from $600 in real estate.

After the $600 spent on gold, you don't have any more out-of-pocket costs.

$600 in investment real estate means the rent (revenue) you receive needs to be larger or even to the expenses of that real estate, otherwise, you are taking money out of your pocket to support said real estate.

Real estate in GVR has not cash flowed in a long long time. So anyone who bought investment real estate in the last five years is likely cashflow negative, meaning they are paying out of pocket to service the debt/expenses on the real estate.
PeanutButter is offline   Reply With Quote
This post thanked by: