Hey proformists! It's fun to read you, to learn a lot from you and thank you for setting up! Now Question: 10% + ...
Original publication date on the United States Real Estate Forum on Facebook:
2018-12-22T15:09:05+0000
Hey proformists! It's fun to read you, to learn a lot from you and thank you for setting up!
Now a question:
10% + no appreciation
Vs
4% + high appreciation
??
I have apartments in Israel that make 6% of the rent and the properties have increased by about 30%.
I know the area and I wonder if I should continue to buy another apartment there (I have the right to take care of the apartments myself and they never stand empty).
Or- buy a house in Cleveland (that's what I can afford in the budget) and make 9% net but I can not handle the property myself
And the rise of the property will not be in the sky.
I live in California and have researched long-term investments in the US.
Giant investors repeated the mantra: "Install in a country or country where people flock to live (like California) and do not invest in Central America, but cheap houses (up to $ 100,000) is because no one
We want to live there.
A second mantra that repeats itself is that the real money is made from the increase in the value of the property and not from the rent.
On the one hand, I learn in the forum that you can do more with the money investing in the US, and on the other hand, in my budget, I feel that investing in the US will be more of a headache than a return.
* My goal is to invest $ 100,000 in the property for rent.
I would love to be enlightened: to continue to invest in my neighborhood in Israel (the expectation of a rise in the value of the property is very high) or to start investing in America.
Thanks for reading so far ????
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Yael Maftsir Botser says your goal is to invest $ 100 in a rental property.
In fact, that's not true at all. Your goal is to invest in a rental property. Your constraint is a $ 100 budget.
This accuracy is important because otherwise what happens to a lot of investors will happen to you - the tail rattles in the dog. And I have seen here nonsense that offers you destruction and economic destruction like scattering the money in an opening situation where your budget is low in the first place anyway. So the first thing in investing, is to know yourself. No one can tell you what is more important or right for you.
Now the second thing. Know the investment. I suggest you first check and then come to a conclusion and not the other way around. So they told you "houses in Central America no one wants to live there", they did and consistently succeeded there? Did you go there and check out these claims?
As someone who has done dozens upon dozens of deals in Cleveland Detroit and Atlanta and accompanied investors, I've also seen people living there. So here's that, too. How do you know which of the claims are true? You will need to check.
I am currently investing in the US, but a daughter of an investor in Israeli real estate. One of the things I believe in and are true for the entire investment field is diversification. Scattering of risk levels, of regions in Israel, the United States and the world.
The market in the country has had a meteoric rise in the last two decades and those who bought a property made a profit. In the US we have seen ups and downs and we may see a halt soon.
The investment amounts in Israel are much higher, so investing in Israel alone is not suitable for every investor (especially for those who do not have very high pockets).
In the United States, there is more to BATMs - unforeseen expenses and the investment is suitable for those who are ready for high average returns and occasional surprises.
On the other hand - if you have a surprise and real estate prices in the country start to fall, it could start to snowball. Many will run to sell at the same time and property prices may fall even beyond the value at which you purchased them - as has happened more than once in the US.
I recommend - both. If you can, maintain a portfolio of combined assets - Israel and the United States and enjoy both directions - a high return in the United States and an increase in value (currently) in Israel.
In my opinion value increase is the important thing.
As one who is very familiar with Cleveland, I will give you a few more angles to the topic:
1. It is certainly possible to get 9 percent, but keep in mind that there are always surprises that can in one case severely hurt the return. Any minor malfunction such as repairing a roof, air conditioner or heating, electrical appliances, etc. can severely damage the yield.
2. There is erosion in the property. Tenants live in it and between tenant and tenant you will have to put in a considerable amount to refresh + months the house is not rented + agent's fee for finding a tenant. Again, it harms the yield.
3. You are being sold a property that is intended for rent and you need to check its level of finish. One day you will want to sell the house and it is not certain that the level of finish that was suitable for rent will match in order to get the maximum amount in the sale. A lot of companies that in the last year are trying to sell suddenly find themselves putting their hand in their pocket or cutting the price because their level of finish + wear and tear from the tenants, does not help them get the high continuum of the price. Lots of guys get hurt from this today especially because of city reviews.
If you don't need rents for a living then value increase is the segment I would prefer.
You compare oranges to apples. I do not know where there are numbers like you tell in the country, with such numbers the group here did not exist?
You live in the US and with $ 100 you can make a nice deal with a leverage in the US especially in the solar states like Florida and Texas and buy a very very high quality property. By the way it was my budget 6 years ago that I started investing. Remember I considered buying an old apartment in Bat Yam for investment and with my brother's advice I saw the alternative of the USA and everything else is history and I am all in the US with 5 properties…
Understanding the dilemma of a well-known and convenient investment area I experienced this recently that I chose to invest again in Texas even though the yield was down and that is in return for security and peace of mind.
To this day does not think of buying in the country and lives in rent but by choice. On a day when prices in Israel are sane and achievable like the US, I will consider buying in Israel, so again it seems that the numbers you present for investing in Israel do not make sense. What's more, another increase in value is highly doubtful.
In my opinion, if this is an option - despite the cost differences, in the situation you described, it is better to buy in the country
If you intend to buy one property in Cleveland with a budget of 60k there is a situation where you will not reach 9 percent. I suggest you find out what the eviction percentage is. Every time a tenant is evicted, the yield that year on the house drops to almost zero. In Atlanta, for example, there are neighborhoods where the percentages are actually higher than twenty percent. If you intend to buy a cluster of apartments in the next few years in Cleveland, it sounds more logical to me because on average you will probably reach a nice percentage. I personally am not an entrepreneur or an investor and this is from my experience and what I have seen with other investors. And of course I would love to know where you are invested in Israel.
Another point that I think is critical for you, property management you have quiet in the management of the property and it is worth two percent or three percent extra.
You have property management in Israel and there is no doubt that you trust the option you have. Go for Israel and continue to enjoy California
If you make 6% net… continue to invest in the country.
If it's 6% according to what you once bought… then it's not 6%… because if a property has already increased by 30% and the rental value has not increased then you are not at 6%, but more towards 4.5%.
I know great areas in the US where you can buy a quality rental at 100k
Another idea, is to take the money and start investing in debt, so that you will generate a steady flow.
Will you take an appraiser for the apartments in Israel that will collect your assumption regarding the increase in value?
In addition, you wrote that you live in California and take care of apartments in Israel yourself. So I suppose that a family member is involved in the story. Otherwise you are indifferent because both in Israel and in the US there is someone who helps with management.
is it true?
In addition, there are places where you can buy 100-2 with houses with a 3 ($ 1,000), which will generate a strong flow (and probably an increase in value), and within a few years the flow will thicken your assets
Hi, thanks for sharing the dilemma.
Do you think that there is still a great value increase in the country ... Is this a feeling or a prediction of the region's temptation?
Also, the real question as always, is financial planning..before being financial.
What are the rental apartments for?
What do you do with the rental money - are you going to save or use it regularly within the home budget?
What is your money making ability in terms of savings and other existing investment measures?
What is your goal / goal in terms of personal and financial goals?
These are just some of the questions for a real answer. - and this is exactly what I do with clients / people
The investment should be based on how you see yourself and the future, and depending on the future use of the money…
For example, if you need 9.5% a year for the next 7 years then it's one of a kind investment.
If you want to build a passive flow - one answer if you are 35 years old and another answer if you are 65 years old..
That depends very much.
You have to understand the market, it sounds like your investment is working well. You need to understand what will happen if prices continue to rise. And why have they gone so far.
I would not be in a hurry to sell, that's my opinion if you want to talk I'd be happy to examine with you and help
Tell me about the neighborhood in Israel?