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fix typo
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carderne committed Jul 15, 2024
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Expand Up @@ -29,7 +29,7 @@ If you can get a low-rate, government subsidised fixed 30-year mortgage, then th
## Hassle
Owning a property is much more effort than owning an ETF, and comes with significant costs. I would guess that many buy-to-rent owners significantly underestimate their costs and so don't have an accurate number for what the returns are on their property (never mind the fact that it's not liquid, so until you sell you don't know what the total gain was).

There's also general upkeep and admin and council taxes and broken internet and leaks and mould to deal with. But this is also one of the potential advantages of property: your own labour. You can spend a two months cleaning and painting and decorating and buying furniture, which adds value to the property. And then again between each rental and when stuff is broken (in England, probably often). If that isn't appealing, or you don't have time for it (or you're an aging Boomer), probably don't own a rental property.
There's also general upkeep and admin and council taxes and broken internet and leaks and mould to deal with. But this is also one of the potential advantages of property: your own labour. You can spend two months cleaning and painting and decorating and buying furniture, which adds value to the property. And then again between each rental and when stuff is broken (in England, probably often). If that isn't appealing, or you don't have time for it (or you're an aging Boomer), probably don't own a rental property.

Because the alternative is to pay a company to do it. So at this point, you own a property with no special knowledge of its potential upside (unless you're a property developer, this is probably the case). You pay others to maintain it, with no special knowledge of their quality, pay others to manage and market it etc. At the end of the day, you may as well own a property ETF, but you'd still be overly concentrated (again, unless you know something I don't, which you might).
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