I think you should consider catastrophic situations also, for example God forbid, if some develops cancer or a very debilitating neurological disease that they need medical care and a place to recuperate, it would be good to have a home near a world class medical center, health insurance, and manpower to care after the sick person. For this reason, I think having a condo in a major U.S. city, with some sort of catastrophic medical care in the U.S. - will give you another layer of insurance. Great channel!
What’s the point of having rental properties? It’s not just about the 4-5% return. The key reason is that real estate investment can be a good hedge against inflation. US government is deep in debt and it could be getting worse and worse. Stock market is just too risky if you put all assets in the stock market. If you retire, you can’t afford losing your savings when market crashes or inflation gets out of control.
200% correct! That is exactly what I do. Spend all of it! I got no offspring. No penny, no property, left when I go to care home. However, if one got children, they probably want to do it differently. Must retire early, or retire very early in order to spend all of it, no penny left.
The point in investing in real estate is to diversify. You can’t bet 100% that the U.S. stock market will be ok forever. On the other hand, there’s a lot of rich people in the world as well as pension funds that must put the money somewhere - and us high tech companies are as good as it gets on this planet. It’s hard to predict the future / with lower birth rate, there won’t be people herding housing. Also with autonomous vehicles maybe people won’t need to live in the cities. There are just too many wild cards. I think a reasonable thing to do is to retire life, enjoy life, but continue to find ways to generate income while doing something one likes. For example, being a park ranger at a National park for a year could be very fun, no?
The point is also with cash buy, you can rent out the house and generate income, to give you cash flow. Have a management company manage the property for you, including finding tenants, maintainace, collection etc. You collect rent. That’s sweet.
Sounds too optimistic. You don't know when you are going to die. Social security is likely not enough to cover all your expenses. You can not rely on government at your old age.
