Small-scale landlords also usually have full time jobs and use rent to supplement their income. Not every landlord is just rolling in cash.
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.
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…
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.
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.
I think this is the most privileged comment I’ve read since I got to Lemmy. Congratulations on being incredibly sheltered and out of touch. /s
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.
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.
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?
