@amicusdei I don't know your situation, but I doubt it was anything life changing after 5 years. Even if you got a good return and the property doubled, it wouldn't be enough.
20 years is enough for the value and rent to double twice. That is something life changing. And I would put that as a minimum. Holding property over multiple generations will see the biggest impact.
@lostchildinohio Wealth in general does really well compounding over generations, except when interrupted by war/political upheaval. There's nothing property specific in saying it's much easier to stay wealthy and grow your wealth when you start at 10M than get wealthy from 0.
@enoughhomeless Yes a common mistake many make not doing the math and being left with a dead horse that just costs them money because they are told buy an IP and you make easy money.
Just chuck in bunk beds to sleep 6 and charge 1200 a week....
@enoughhomeless And that's ok, property shouldn't always be a slam-dunk financial win. Maybe sell it and let a family get into their first house instead.
Also, it's not about making huge money on the rent, it's about the appreciation of the asset
@enoughhomeless I would monitor it for a year, and if it’s truly a lemon, sell it even if it’s a loss. Chalk it up as an expensive learning experience and don’t repeat it again. That’s how you mature as an investor. not willing to get rid of non performing investments (loss aversion) is a sign that you are a poor investor. Find a better investment to recover your position instead
@enoughhomeless Call me old fashioned but i just don't see the value in the risk of borrowing near on a 3/4 of a mill for a 2 x1 unit. I hope its at least stand alone.
One thing with property if you over pay today you will still make a profit in 20 years.
