1368
Happy Labour Day to people who are not landlords.
(lemmy.world)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 04 Sep 2023
1368 points (87.1% liked)
Memes
45581 readers
1212 users here now
Rules:
- Be civil and nice.
- Try not to excessively repost, as a rule of thumb, wait at least 2 months to do it if you have to.
founded 5 years ago
MODERATORS
Small-scale landlords also usually have full time jobs and use rent to supplement their income. Not every landlord is just rolling in cash.
I work at a credit union where we deal with a lot of smaller investors and many of them have properties where they aren't breaking even on a cash flow basis. But they are using the losses to lower their taxable income while building equity elsewhere. They are (from tenants I've heard from) good landlords. Lately we've been dealing with a lot of realtors that are buying up properties and that just doesn't sit well with me so I'm looking to change careers and get more into C&I and CRE rather than SFR investments. Being able to cash out 7.25 weeks of accrued vacation time I haven't been able to take too is a big plus.
In a lot of places if you own any land you are a millionaire, it's coming to the point that if you own a condo you are a millionaire.
What places? I’d hesitate to say “a lot” unless you consider just largely urban areas
It's true that "few hundred bucks" is enough to reach one million. But it is not for anybody. Let's take 999 bucks, which is the maximum of "few hundred."
If you were to save 999 bucks and didn't consider any interest or investments, it would take you approximately 84 years to accumulate one million dollars.
However, it's important to consider interest when planning for financial growth. Let's assume an interest rate of 2%. Even with this interest, it would still take around 49 years to reach one million, and you'd also need to account for the impact of inflation, which can erode the value of your money over time.
To achieve your financial goals more efficiently, you might need a higher interest rate or explore investment opportunities where your money can work for you, such as becoming a landlord...
Except, that's not what's happening is it?
A few hundred per month. Let's do some math. Let's say you work and earn some form of income for 35 years, or 420 months. If you save 500 every month, you'll have a grand total of 210.000. That's 790k off of a million. Even at 1k per month, you're still less than halfway into being a millionaire.
You need to have a consistent salary of over 2.380/month (28.5k/year) to accrue a total of 1 million during those 35 years. So, supposing you earn 5k a month (60k/year), and can put half of that into savings, yes, you can "become a millionaire" by the time you're retiring.
Your comment what so intellectual and full of information I was about to save up 10 million+ dollars and own a cheap 3 story apartment complex. I now drain the legal maximum amount of money out of my tenants. Thanks! I can now buy that 2 million dollar house I was eyeing
Please explain how to turn $210k into $1m with interest alone. I'll even be generous and say you can take an additional 35 years of time to grow said interest.
Getsmarteraboutmoney.ca - go to their compound interest calculator. If you have 210k and put it into VEQT on questrade and set up a DRIP, in 35 years you'll have something like $3 million
Can you link to the actual calculator you're using for that? That page you linked is just their homepage. I've never seen a calculator that accounts for a DRIP.
It's just a compound interest calculator https://www.getsmarteraboutmoney.ca/calculators/compound-interest-calculator/
Use this one to calculate the value with inflation (average historically is 3.25% over the last century) https://www.wealthmeta.com/calculator/compound-interest-calculator
No, you have 35 years to earn interest, because the first 35 years was spent saving the principal, remember? And remember how I said with interest alone? So no more $500/month contributions either.
So with that calculator, $210k at 4% interest for 35 years puts you at $849,611.66 with monthly compounding.
So not a million.
Ah yes, tell me more about how everyone has an extra 2.500 lying around every month which they don't need to spend at all, which they could just leave in a savings account and never ever have to deal with unexpected, unpleasant, expensive surprises.
And you might want to read about cost of living
Literal copy-paste of your first post. The math in my first reply showed you were wrong, that "saving a few hundred" wasn't enough. Your take, somehow, was, I quote:
I have literally no idea how "500 per month for 35 years will only get you 210k" and "You need ~2500 per month every month for 35 years to earn a million" could ever mean "people don't know how to invest, that's why they don't become millionaires".
My reply was a snarky "Ah yes, tell me more about how everyone has an extra 2.500 lying around every month". Which you simply dodged because I "ignored the context" and because interest rates exist - they still won't make less than 250k into 1 million if you start from zero. Also, allow me to remind you the context that you set up:
Now:
At no point in any of your other replies, to me or other posters, you ever mentioned "people who earn enough" in a direct or indirect manner. The only time you ever pointed to any group was "anybody who works their entire life".
You can only get 1m or more under SPECIFIC situations, one of them being: IF interest rates keep a mean of 7.5% per year for the whole 35 years AND the compound happens quarterly.
Using the current USA fed rates as an example, of ~5.33%, you can "get" a million IF: the compound is calculated daily AND there's a 2.3 variance upwards in interest rates, making it go as high as ~7.4%. Obviously, that happening later on is much more profitable than early on, when you have much less money to get the compounds on. If, however, something like the early 2010s happens again, where interest rates were below 1% for roughly 6 years straight, you won't get to the million mark.
The fact that you never, at any point, did your part to actually try and show how, why and where my math "was wrong" shows that you're acting on bad faith. You just say "you're wrong" without giving counterproof. You fail to point how I'm "wrong", you just point to a site and say it. Under specific conditions, yes, I am "wrong", but under more likely conditions, you're wrong. Unlike you, I'm also pointing out the where and how: most situations where interest, especially later on, is below 7%.
Ironic that I put more effort than you did in any of your replies
And you never showed why-how-where I was wrong, you just said it and called it a day. The situation where you are right is so unlikely that assuming you're wrong makes more sense than assuming I was wrong
Yeah I'm going to slave a large part of my entire life so I can own a house, so I can then rent it it in 50+ years. I'm sure by the time you save a million dollars the houses will be worth 3 million. They are already pushing 1.5 million in major cities.
Yes because everyone wants to finally own a house when they pushing their late 60's that was always the dream. Okay cool story it's funny how you manage to twist everything everyone says but actually contribute almost nothing intellectually to the conversation. You would think someone so knowledgeable and moral like you would share their strats instead of being dismissive and ant intellectual. But hey maybe you have inherited wealth and your "job" is checking in on your building managers once a week. Each their own.
No you don't say people can do X you make passive aggressive remarks on how people don't know how to invest (you never really give an intelligent response beyond this). More passive remark, I don't even know what "no perspective for yourself" means is that supposed to be no future but you realized it was too aggressive even for you so you changed it and now it makes no sense. I have no idea what your sober comment is in the context of. I don't feel you, you never say anything of substance and feel you can just deflect with passive aggressive insults.
Being a landlord, making money off of the hard work of other people, and still having enough time to have a full time job "on the side" means you don't need to be a landlord because it obviously isn't an important job that you have to dedicate time and attention to.
Choosing to use a basic human right as a form of income is scummy. All landlords are scum, whether they are rich or not.
People need a place to stay and not everyone has piles of cash for a down payment. Vote for the change you want, but in this system we need rentals.
Those rentals should be a social project not a profit driven one.
There’s more demand for rentals then there are government resources to provide social projects.
Then we should pay more taxes.
That’s why i said go vote.
What makes you think I don't? Greed wins every time.
Fuck taxes, the government needs to control all money and pay for all our needs. Anything left over can be split evenly among everyone.
Do you trust anyone to do that? How do you think we ended up with billionaires? By people being gracious? Too many people are too greedy for that to work.
There should be options for people to rent. Personally, I don't want to own a house any time soon. That's a lot more maintenance and repairs I'm responsible for that I don't want. BUT, the reason it costs so much for people to purchase houses in the first place are because too many people are purchasing multiple properties as an investment, creating an artificial housing shortage. There now aren't enough houses available for the amount of people who want to buy them, so the price skyrockets. Down payments are typically a percentage of the overall cost. Overall cost goes down, the pile of cash you need to begin is a lot smaller.
It's survival.
Can I come to your house, eat all your food, empty your bank account, and have your things?
That makes no sense at all.
And becoming wealthy by withholding human rights from others isn't "survival".