What’s better? Stocks VS real estate

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  • Опубліковано 1 гру 2024

КОМЕНТАРІ • 83

  • @lostboi3974
    @lostboi3974 3 місяці тому +3

    I had 4 rentals in South Florida. The "ONLY" time I made money off them was when I sold them to fleeing New Yorkers for 2x and 3x what I paid for them. Now I put it all into VOO, VGT, and SCHD.
    If I could go back 20 years (Im 43 now), I would just put everything into VOO. Roth IRA and taxabke account. And maybe some other thing too, like QQQ or SCHG. But stocks are so passive compared to rentals.
    Rentals used to be better but have really changed because of higher overhead and regulations. Not to mention the tenants are allowed to abuse you.

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому +1

      @@lostboi3974 I couldn’t agree more lol. Thankfully you had us New Yorkers to sell to hahaha.

  • @Hope_Rich-Ly
    @Hope_Rich-Ly 3 місяці тому +5

    Great Video as always. 👍I am always looking forward to new videos here.

  • @RetireearlyNYC
    @RetireearlyNYC  3 місяці тому +5

    Just want to correct the average rate of growth for real estate has gone up significantly during the last 15 years as well, just like stocks. It’s not 2-3%. It’s around 3.5-5%, depending on which site you look at. Factor that in when you compare long term investing in real estate and stocks (indexes)

  • @nguyendinh3193
    @nguyendinh3193 3 місяці тому +1

    Awesome comparison between 2 greatest assets, so much wisdom about finances.

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому +1

      @@nguyendinh3193 thanks for dropping by! :)

  • @mp22422
    @mp22422 3 місяці тому +3

    Thanks for this one Johnny. This helped

  • @ChooseLife-rb3uk
    @ChooseLife-rb3uk 3 місяці тому +2

    I bought a house and rented it out for 2 yrs that covered the mortgage and my own rent that I lived fr free. Then I sold and bought another house with basement apartment with separate entrance. Lived for free for 13 yrs that’s to renter and sold that house to buy my dream country property to live self sustainable and now I pay a small mortgage on my property. No down side to owning real estate if you rent to the right person.

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому +1

      @@ChooseLife-rb3uk that’s exactly what I was talking about in my “how to get into rentals” video. And House hacking is an awesome way to get into REI :)
      It CAN be done! But people have to learn the right way to do it, as you’ve done :)
      I have to do a video on how to look for the right rental property. So far I’ve just been negative on it bc so many people do it wrong lol. Good for you. 👍👍

  • @masonloh1411
    @masonloh1411 2 місяці тому +1

    My take is average blue-collar person should just invest in mutual funds. you just need to read up & start small - just open an account like Vanguard / Fidelity / Charles Swab. again, long term do not take the bad news on daily basis up / down. there always going be up or down either one day or weeks even month's but overall by the time you invested 30 years you won't regret it. I know most can't foresee 30 years but after 1st 10 years is going to go by in a breeze the older you get.

    • @RetireearlyNYC
      @RetireearlyNYC  2 місяці тому

      @@masonloh1411 absolutely . For average joes it’s a no brainer. Go with mutual funds/indexes. Real estate investing is HARD!!

  • @deanc2000
    @deanc2000 3 місяці тому +2

    Great video and I understand your point of view. The huge con about investing in the SP500 is this. Compound interest can be very powerful YES, but its a double edged sword. On a good day you can gain a lot of value. Say you have $1 million. A day where you have a 2% gain, you've just gained 20K. But you're ignoring the down days as well. On a day that you lose 2%, you've just lost 20K. So when you wait and wait 20 years and you build it up to 2 million. That bad day will be EXPONENTIAL as well. The good days are exponential, but also are the bad days.
    In Real Estate, you keep earning a reliable rent. Real estate value increases about 3-4% per year. Your expenses will decrease you taxable income, so you pay less taxes or no taxes. You can hire a property management company to do all the dirty work for you. Mortgage payments are fixed and will decrease your taxable income.

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@deanc2000 i would dispute some of the points you made about indexing. But yes, the 2 classes of assets are totally different. It depends on many factors. And for me it is not which is better but which is easier for the average Joe ;)

  • @Emilyleestrong
    @Emilyleestrong 3 місяці тому +2

    Thanks 👍

  • @Rudy4759
    @Rudy4759 3 місяці тому +2

    Bought a home cash for 125k in 2010, sold it for 375k last year. Spend 50k before moving in and spend 50k before selling it. Rent it for 13 years totaling 225k in rent. I did well, however after all fixed and variable expenses through the years, I could have done better investing in spy. S&P would have me holding 500k right now. At the moment I’m not holding 500K😢

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому +1

      @@Rudy4759 yes, exactly my point! And you actually did well! Most first time investors wouldn’t even have achieved that. And let’s fact it, most are gonna be first time and last time investors in REI. The first one is a make or break it deal and most simply do not make it. Good for you for getting out. You bought low and sold high :)

  • @jaedin716sw
    @jaedin716sw 3 місяці тому +1

    Great videos!!!Ty

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@jaedin716sw thanks for watching. And YW!

  • @ShowMeWhatINeedToKnow
    @ShowMeWhatINeedToKnow 3 місяці тому +1

    Great vid

  • @zmanoman
    @zmanoman 2 місяці тому +1

    One of the challenges with real estate is that it has to be the right deal with the right roi. Not easy in today's market especially in a high cost of living area like nyc. In your case with your real estate investments, would stocks have yielded a better roi? If you can re-do would you still pick real estate?

    • @RetireearlyNYC
      @RetireearlyNYC  2 місяці тому

      @@zmanoman next video in this REI series is what’s better than 500% ROI and $1900 cash flow per month ;)

    • @RetireearlyNYC
      @RetireearlyNYC  2 місяці тому

      @@zmanoman
      Most people think REI is the best. I’ll show you the actual numbers. You decide.
      But yeah REI was very fulfilling. Just like building up your own business. But at the end of the day, ROI counts more :)
      Better return on the effort, for me.

  • @Lisahay-y5m
    @Lisahay-y5m 3 місяці тому +3

    I just invest in SPY, SCHD, QQQ.

  • @lostboi3974
    @lostboi3974 3 місяці тому +1

    Stocks

  • @UraniumFever-ud8il
    @UraniumFever-ud8il 3 місяці тому +2

    Vastly prefer stocks.

  • @jayflaggs
    @jayflaggs 3 місяці тому +2

    There's a reason why wealthy people own lots of real estate. Real estate and s&p are two different assets classes. I can't tell you what the value of the s&p will be in 30 years. I can tell you what I'll receive from real estate after 30 years. You need both.
    Also, if you own real estate and do it properly you don't pay tax on earned income. According to dave Ramsey most millionaires did it with real estate, not stocks. Most people cannot put 250k into the s&p and stomach the 50-70k dips. Whereas with real estate, you often have no choice but to be patient. 🎉These are just two different assets to compare to each other.

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@jayflaggs yes it’s like apples to coconuts ;)
      Both are tasty ;)

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@jayflaggs
      Thanks for bringing it up. I totally forgot about depreciation on this one. In the other hand, most mom and pop investors simply don’t even make anything to depreciate against. lol. You’re in a completely different boat. Most people never make it past 1-2 units. It’s basically make it or break it and they simply don’t make it. Unfortunately

  • @annielin2894
    @annielin2894 3 місяці тому +1

    Johnny I am trying to move fidelity account to Vanguard but I have no understand how to transfer and what to buy in a easy way. I am not very bright so I don't know how to do it.

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@annielin2894 don’t say that lol. You’re plenty bright. Nobody knows everything. But is Fidelity so different from Vanguard? Also you can call either one and they’ll give you directions. Esp where you want to transfer to. They’d be happy to help you move money into their bank lol

    • @annielin2894
      @annielin2894 3 місяці тому +1

      @@RetireearlyNYC well my IQ is only 108 and when I saw my father who is an engineer in Taiwan he just told me you just need to stay healthy and average period. Don’t stay greedy no need!

  • @BK-gh9us
    @BK-gh9us 3 місяці тому

    Your take on real estate 🏡 is very realistic. I’m curious if you have a similar view on an asset like bitcoin.

  • @AmbyChloe
    @AmbyChloe 3 місяці тому +1

    Hey Johnny @retireearlynyc could you explain how exactly do you “invest”? I’m new to this. Do I simply go to my bank and deposit $500 a month in S&P500? Or is it more complicated than that?

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@AmbyChloe hi there
      1. You should have money going directly into a 401k or IRa. Max those out each year if you can. Pick a broad market index. Safest thing for 99% of people looking for long term growth.
      2. Any extra money should go to a bank like etrade, vanguard, fidelity etc. Not a local bank. I don’t think they offer index choices like a large bank. They probably just get their stuff from a larger bank anyway. Not sure. I’ve always had an account at a large online bank.
      3. Once set up, it simply couldn’t be any easier than just clicking a button to buy or sell. (Preferably Just buy and hold for decades)

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@AmbyChloe if you already have direct deposit into a local small bank like I do, then simply open an online account and link the 2 banks. You can then transfer money back and forth between the 2 to invest in the online one.
      This is for extra monies. You should already have automatic money going into your 401K directly from your paychecks.
      Hope that helps !

    • @AmbyChloe
      @AmbyChloe 3 місяці тому +1

      @@RetireearlyNYC thank you!

  • @johnc3886
    @johnc3886 3 місяці тому +1

    In today's markets with how much RE prices has inflated due to 'low supply' (probably in part artificially due to large companies in the business of buying large inventories of homes and then renting them out), it's cost-prohibitive to buy RE unless you as the owner decides to buy a property for yourself to live as shelter. If one happens to own a rental property, unless it was purchased at least a decade ago, you are paying up the ying-yang of interest (huge impact on ROI); property taxes; utilities; labor-intensive; (hidden costs). Stocks are much more attractive as long as you know what you're doing since it's much more transferrable from any holdings you may have, but mainly b/c it's not artificially inflated like RE. The P/E or forward P/E are what they are; along with looking at the stocks' fundamentals...or as you suggested, simply owning the SPX index funds, although from my experience a well-thought out *basket of individual stocks* will vastly outperform the SPX index fund. Hands down, it makes more sense today to go with stocks. But, of course...if you're in the position to do so (inheritance; self-made), you can own both. I recently had a discussion with a friend who is a property manager, and owns multiple rental properties - and he has great distain for real estate's commissions. I agree, as realtors are getting paid way too much (on inflated prices) for doing paperwork (albeit important paperwork, but not in the tens of thousands of dollars, or in some cases 6-figures). Crazy and outrageous !!!!!

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@johnc3886
      Both markets have grown at unprecedented rates recently. Sooner or later people will refuse to pay these outrageous prices?? But it doesn’t matter to the long term investor, or anybody who lives well below their means. It will be another buying opportunity. Change will bring with it opportunity. ;)

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@johnc3886
      How many different stocks do you own? Curious to learn. My own picking of stocks hasn’t done great. Haven’t lost money. But also hasn’t beaten the SP lol.

    • @johnc3886
      @johnc3886 3 місяці тому

      @@RetireearlyNYC I personally own less than 10 individual stocks; stay with the creme de la creme in general; you can have a few/small amount in long-shots of course. They are elite for a reason. Prior to the Great Recession 2008, I re-focused away from index funds, MF, ETFs...and made a decision to own individual stocks, and much larger positions. I'm sure you know who George Soros/Stanley Druckenmiller are...one of the greatest lessons I extracted from them was that IF you believe you have a winner, back up the truck (btw I'm NOT referring to speculative positions as specs would scare me). Since then, I've annualized about 28% per year overall. I respect Warren Buffett, but I tend NOT to own many of his holdings (consumer goods, railways, etc.)...but he once said a successful investor can own about half a dozen individual stocks and watch it like a hawk (to enhance performance). Buffet is absolutely correct. The problem/issue I have for MF/ETF is that they are OVERLY-diversified and hence hurt your overall returns. I've been fortunate in having 15-25 baggers in a few holdings. As you know, you don't need to hit home-runs with every position. Hope that answers your question.

    • @johnc3886
      @johnc3886 3 місяці тому +1

      @@RetireearlyNYC I had a long reply but I guess YT woke moderator took it down. Nothing offensive in my reply either.

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@johnc3886 well
      Hoping to hear it later :)

  • @DarkoFitCoach
    @DarkoFitCoach 3 місяці тому +4

    In general nothing touches stocks in terms of returns. Not even close
    Plus real estate is a hassle and if anybody says it isnt they dont own any properties.
    Stocks (broad index) will give market return (14% for past 15yrs which is insane so expect a return to the mean) with absolutely zero effort
    But issue is people dont trust their own insight and rather give money to active fund managers who take half your return. Yes i said half
    1 million with 7% over 40yrs gives 14mil
    1 million with 5.5% (1.5% fee for manager) and you get 8million in 40yrs! Almost 50% less!
    Thats called tyranny of compounding costs
    Index (sp500 or world) and hold it and shut the fuck up 😂

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@DarkoFitCoach
      Absolutely. For the amount of effort (zero) and experience needed (zero) indexing is hands down easier. Especially for those with above levels of experience and don’t want to put in any effort 😆

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@DarkoFitCoach
      BTW I just subbed to your channel as well. Took a Quick Look at your titles and they seem to coincide with my way of thinking. And you’ve demonstrated that your thinking on investments coincides with mine lol. Looking forward to watching your videos

    • @DarkoFitCoach
      @DarkoFitCoach 3 місяці тому +1

      @@RetireearlyNYC i dont make any investment videos. I made few videos about fitness industry a few yrs ago

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@DarkoFitCoach yes but the thinking applies across multiple disciplines. Long term vs short term. Consistency vs sporadic, etc.

    • @DarkoFitCoach
      @DarkoFitCoach 3 місяці тому +1

      @@RetireearlyNYC oh yes thats for sure. You got that right.
      This week i had another call with a active fund manager who has 300mil euro AUM.
      Dude is amazing in selling but crumbles like a transgender in russian battlefield when asked what his year on year returns are (the very reason for his existance)
      Example: they got last year 8.2% return he boasts. I said thats amazing, super even but i got 24.3% return with zero effort and fuckall knowledge. 🤣
      I love when i get sold to. I seek it out. Love burying their ideas and efforts

  • @DavidW.-nt7li
    @DavidW.-nt7li 3 місяці тому

    Hamburgers. Putting your money in hamburgerss is better than stocks and real estate because at least you get to eat something good today. Stocks and real estate are just pipe dreams that do not help your daily life.

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@DavidW.-nt7li hmm…ok. What do YOU put your money into? Serious. I’m curious to know how you invest

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@DavidW.-nt7li I’m always open to learning new things. I always think I can be wrong and that there’s probably a better way out there

  • @plupyduplupydu1369
    @plupyduplupydu1369 3 місяці тому

    Stocks are gambling like poker-have fun. Real estate is awesome but it must be protected by family(strong and old is better). Do you own that lot?, or do you pay rent for that lot to the gov? Real estate apprechiates but in the wrong place like detroit one looses. Decent, honest, renters, owners beautiful life-

    • @lov305mia
      @lov305mia 3 місяці тому +1

      How is it gambling? I need to hear this one😂

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому +1

      @@plupyduplupydu1369 100 plus years of returns that anybody can verify lol.
      Yes I’d too like to hear your explanation

    • @johnc3886
      @johnc3886 3 місяці тому +1

      @@lov305mia Your question is valid. Many novice stock investors automatically group all classes of stocks into fly-by-night penny stocks...not using their brain to realize that the S&P500 are the largest companies in the US (globally). I guess MSFT, HD, LLY etc. are all 'penny stocks'. LOL. They've been watching too many Wall Street movies and not using their noodles.

    • @lov305mia
      @lov305mia 3 місяці тому

      @@johnc3886 If only more people understood that if they are worried about their “gambling” investments into ETFs going to 0 , they’d have wayyy bigger things to worry about

    • @plupyduplupydu1369
      @plupyduplupydu1369 3 місяці тому

      Shovelling snow or dirt is pure hard earned wealth. Lending a person cash to fix his flat tire is investment. When the money you got wasent earned (you got it free or gambled) it isnt yours. Did you meet anyone in those stocks?, did you get your hands dirty? Did you even give a shit about what that stock does or sells-thats gambeling and you havent earned a thing-useless eater.

  • @johnc3886
    @johnc3886 3 місяці тому +1

    You and your wife retired in your early 40's. What do you do in retirement ? Travel, support children, YT videos. What else, as I see retirement can be too UN-busy ??

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@johnc3886 I have a video for that already lol.
      Will post soon

    • @RetireearlyNYC
      @RetireearlyNYC  3 місяці тому

      @@johnc3886 well, that’s why I went back to work twice a week. I do Duolingo everyday, walk everyday, work out most days, train some friends, walk and workout with my mom, piano, video games, books, sit and enjoy reading by the water, driving lessons for the kids, drive them to the train station every day, hang out with my friends A LOT. Dinner with parents every other week or whenever we feel like it.
      Everyday is a Friday or Saturday lol. And we try not to go out from Friday night to Sunday. Too many people lol. Just hang with friends indoors.

    • @zmanoman
      @zmanoman 2 місяці тому +1

      Would you consider getting a fixer-upper to work on as a hobby, not in nyc considering the cost, but like a vacation home in a low cost of living area? I'm a diy'er and i totally agree on the amount of work it takes to manage properties. But I'm thinking i might miss it when i don't have any to work on. Even just one or two when I retired to give me purpose. Sounds like your time is well fulfilled so maybe it's just a matter of getting adjusted.

    • @RetireearlyNYC
      @RetireearlyNYC  2 місяці тому

      @@zmanoman yeah everybody is different. My wife is totally fine with cooking and cleaning and tiger momming the kids lol.

    • @RetireearlyNYC
      @RetireearlyNYC  2 місяці тому

      @@zmanoman I did consider keeping our properties just as a Pt job. Was gonna 10-31 to larger properties in order to not keep too much equity in each property (bc too much equity kills the ROI equation)
      But the 10-31 numbers didn’t work out.
      I would only do a fixer upper in a relatively cheap location IF the ROI is good. Otherwise, there’s no point. I can always do something else for fulfillment, like the current job I have of doing basically nothing (security). Haha