More than ten years ago, I posted about investing on a rental property and someone left me this comment:
You have a choice about investing your money in stocks vs. a house in Philadelphia that you may be buying at the peak of a real estate bubble. There was a recent article about stocks being a better long term investment than real estate, did you read it?
At that time, obviously, I did not realize that the real estate market was going to crash in 2008 and rushed in my first rental property. In hindsight, I could have waited and bought a rental property after the crash and would have bought at the bottom of the real estate market. It would help to do some research before and look at the data before rushing to an investment.
In any case, I have learned a lot as a landlord, having experienced very bad tenants and having gone through a real estate market crash. I have detailed some of those stories in my blog. If anyone is interested, I’ll make an update on my real estate investment in another post.
Anyway, it looks like we’re at that time again, where we’re at the top of a real estate bull market. Shark Tank Kevin O’Leary explains why it’s not prudent to invest in the real estate market now in the video below.