[martin-t]

56 minutes, 4 downvotes, HN is truly full of temporarily embarrassed millionaires.

Does anybody here really think rich people deserve to just get richer faster than any working person can? Does anybody really believe that buying up homes and companies and raking in money for doing absolutely nothing is what we should be rewarding?

Then put your name behind it.

[astrange]

Homes are depreciating assets. You can't get rich by "buying up homes and doing nothing" because you'd lose money. Nobody is doing this, although a bunch of confused people on social media believe BlackRock is doing it for some reason.

[Nursie]

> Homes are depreciating assets.

Where do you live? Their value has been steadily appreciating in a lot of places in the west due to high demand.

[astrange]

I live in the most expensive housing market in the world.

That's because the value of the land under the houses is so high; the house itself is nothing special. But even then, it's mostly because of Prop 13, and it only works out if you live in the house yourself. There's still noone cornering the market in California houses. Almost all landlords only own 1-2 properties.

[Nursie]

I live in Perth, Western Australia, and here 5-year price growth has topped 100% in some suburbs. Landlordism is an enormous money-spinner.

[astrange]

Until you have to replace a roof, or a tenant destroys the house, or it just doesn't rent for a while and nobody notices a water pipe breaking.

It's risky to own a lot of buildings, and worse the risks are correlated if they're all in the same place (there could be a flood or wildfire etc.)

Commercial real estate is different because your tenants are (more) professional.

[ipaddr]

You get insurance to manage risk. You factor in roof repairs, vacancy rates when determining rent meanwhile your property value over the last 10 years in most places around the world have at least doubled and more.

Doesn't mean the next 10 years will see that growth but if you believe your country/area's population will grow it is probably a good investment for now in the western world.

[Nursie]

As the other poster said, these risks can be mitigated in various ways. If the property appreciates 100% over five years, your costs associated with those risks are comparatively minimal.

They certainly don't constitute a depreciating asset!

[afavour]

I assume OP meant doing nothing except just rent out the property.