Of course, when money was free and rates were low, it was clever to buy a home. Now, real estate rates are 50% or more up while home loans are also 50% more expensive. Of course, it is a home, so there are other aspects to account for, but it isn't as fantastic as it was.
FULL REIT VIDEO:
0:00 Real Estate
5:25 Would I purchase now
8:49 Reits
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can you analyze rxrx ?
thanks sven!
Property taxes and house insurance rates also skyrocketing in price. Which will also translate to lower housing prices.
Hey Sven, what about this. I am looking at a house in prime place in Copenhagen. Mortgage can be = with the rent however to bring it to this level it means i sell my value/dividend portfolio.The house costs 5 mil the portfolio is 3mil. Atm the portfolio yields at 6.4 and technically I am FInancial independent – i can live out of the dividends. Would you sell all, sell half or wait? Note the market in Denmark did not fall much and the fixed interest rate is around 5%
Rent
You can live off of dividends when taxes are 42%?
@@maxx0531 taxes are based on capital income. If I get only the dividends and stop working then I make less money hence i enter in the lower tax bracket.
But what to do if lithuania mirtie ges arent fix?
Why do you prefer a 100% fixed rate and not a 75% fix and 25% adjustable rate?
In Canda the mortgage rate is for 1-5 years, then we have to renegotiate. If I could get a mortgage rate for 20 years at 4%, I’d be pretty happy. My mortgage is 1.96 and expires in May 2026, at which point have to refinance it at whatever the rates are then…
Same for me here in the UK. My interest is similar as well
Thanks Sven: great vid.
You have to live somewhere – that’s why I never liked to think of my home as an investment regardless. Just don’t overextend yourself. If you can pay off principle earlier then do it. If interest rates go down then refinance.
If you have to live “somewhere”, then why not in a village in Tuscany for 1 Euro, or buying a home in a japanese village for 10k, or in Russia for 20k? There are a lot of very nice places all over the world, that are affordable and great. Not everybody has to live in L.A., Tokyo or Amsterdam. Unfortunately some people are really crazy and pay insane amounts of money for rents, property. When two rats are fighting, the cat is the on that wins. Just let those “elites” to their cities and they will be taken over by the homeless and drug-addicts. Look at San-Francisco, Toronton and Co….. haha…great new world ;)))
This seems like the worst period.
Even the market are now very unpredictable. Started investing recently when the market prices were a bit This high,today I am more than 60% down!??
Don’t be confuse buying the dip in a bear market, with guaranteed future returns. Just because that company is down 60%+ from ATH does NOT make it a sound long-term investment. Make sure you’re investing in great companies. kudos to mrs Sonia silvia
I agree just reached my goal of $500k yearly trade earnings. Setting realistic goals is an essential part of trading..
Please educate me, i’m willing to make consultations to improve my situation,
She’s recognized as ‘Mrs Sonia . One of the finest portfolio managers in the field. She’s widely recognized; you should take a look at her work.
Wait is this the same lady? That helps me with 17k investment “wow” such a small world..
In California it’s double the cost to buy vs rent
The cost or the monthly payment of the property including paying off debt ?
Watching this as I’m in the process of buying my second home in the states… Like Sven says you have to find value… I found a house with an assumable mortgage “ taking over the current loan “ at 3.25% when average is around double that.. even if prices drop a little that’s value for me!
You should add inflation or personal earnings development to the calculation. If for 5 years ago hauses went up by 50% but in the meantime earning went up by 30% than the gap is only 20%. And with higher earnings people can afford higher monthly installments
I belive that it is the bests times to BUI REITS in Europe, Prices from 2014, High price m2, record of minimums Mortgage and interest rates about to decrease. For me it is enough. Real state is one of the sectors that grow the most after crisis periods.
Housing prices are determined by supply and demand. The supply of houses is very low right now, which is why housing prices remain high.
How would You comment recent Blackstone acquisitions in real estate sector? Example they bought Tricon residential REIT paying some 11 $ per share whereas the price on the market was 6 or 7 $.
Thanks Sven. When comparing historical prices one would have to correct for inflation and rising wages. In my field, wages are currently 15% higher then 3 years ago. With an average wage rise in new agreements at 5.9% in the Netherlands in 2024 it would imo take an economic crisis for prices to come down.
It all depends from country to country.
We must take into account the rise in incomes over the last few years as well. Post-COVID, companies have paid workers higher wages (on average). This will factor into higher home prices.
Recently I’ve done some calculations and it seems to me that real estate has some excessive gains starting in the year 2000. Furthermore, everybody is talking about how great real estate is and you should invest in it. Let alone the popularity of buy-to-let and house flipping. All the hallmarks of a bubble, if you ask me. Up until the year 2000 house prices increased pretty steadily with inflation, but nothing more.
Besides, my calculations with data sets going back 50 years seem to suggest REITs/real estate are highly correlated to stocks. Real estate often seems to exacerbate drawdowns of a portfolio.