This young RE bull not only suggests a ‘money-for-nothing’ ‘retirement plan’ that is downright dangerous at this stage of the market cycle, he also implies that those who foresee a RE crash are somehow mean spirited and somehow against “offering something that people can do to help themselves”. In reality, most of the bears I know have become more and more vocal about the preposterously overvalued RE market for the very reason that they DO care… They care about the effect of the bubble on themselves, their families, their friends, and their society. From the bearish perspective, “something that people can do to help themselves” is to sell their overvalued speculative RE now and save themselves a lot of suffering later. -vreaa
The image above and the article below from 30 year old “third generation Alberta real estate investor” W. Chris Davies at his blog chrisdavies.ca 31 Jul 2010 -
“My $200,000 Retirement Plan.
So, this is actually really simple.
- Buy a $200,000 house today.
- Rent it out, making sure you’ve picked a house where the rent covers the expenses with a bit leftover.
- Wait 20-30 years. That’ll make me 50-60.
- You’ll have (at least) a $200,000 asset free and clear that you can sell, remortgage or light on fire.
- Repeat Step 1 as able while you’re young.
Make sense? What do you have that’s better? What’s holding you back?”
In response to comments below his post, Chris added:
“It’s not rocket science and I’m always reminded of the (now) cliche ‘don’t wait to invest in real estate. Invest in real estate and wait’”
[in response to a comment that "Alberta will crash"] “It’s easy to say things will explode. How about offering something that people can do to help themselves?”
Elsewhere on his blog, Chris describes himself thus:
“I have worked for a property management company in a variety of positions, including resident manager and property management assistant. I have been involved with real estate since I was born. I am a third generation Alberta real estate investor. I am a member of the Real Estate Investment Network. My parents are as well. I do not have any financial ties to the property management company I formerly worked for, or to any corporate body involved in the real estate industry, except my own. I’ll do my best to disclose conflicts of interest where they exist.”
[This link via e-mail from a reader who wishes to remain anonymous. Hat-tip to them. -ed.]