Stock, market went up +20% this year, +20% last year ... Real estate doesn't do that. Thank you for doing this video, I was hoping you would on this topic at some point.
@@doanduong7119 Hi there! The stock market had amazing years! This calculation made me want to sell everything and buy stocks instead, especially with potential repair costs looming as my properties age. But I'm also aware that I can't rely on these exceptional returns continuing in the stock market
Hey Gal! Great video! Passive income is amazing no matter how you get it. The one thing to consider here is that although you made an additional 80k on rentals, You have to also consider the time you spent on owning, accounting, and stress too. The stocks are “set it and forget it”….where you have yourself a job with rentals! However the rentals also shelter some taxable income too! You should never sell…just use the “Buy-borrow-Die” system. No capital gains on cash out refinance :). Great strategy :)
Hey! Thank you so much for your thoughtful comment! Time and effort are huge factors to consider with rentals, although I have a property manager, the stress of maintanance and vacancy is a lot! But like you said, rentals have some amazing benefits too! Haha love this: "Buy-Borrow-Die" 😂
Oof, yeah , a lot of variables!!! I think whats very true is that the way it worked in 2016 is over, so I dont think buying rental property now is as good of a return. To me, I move toward stock investing. I do have one property, its a duplex that I house hack in. It's possible I'd be better off selling it and taking the cash to put into stocks, for wealth building, BUT I feel its invaluable for me as my secure home and keeps my epenses low. But, I will not be adding more real estate. There is less headache, less stress, less of a job in owning stock investments. I think its good to have some of both asset classes, but I would do majority stock. I myself am averse to leveraging, because I dont think its a good environement for that . If I cash out refi, dont I just have to pay that back ? :/ PS love this video topic, both yours and Shelby's are so facinating!
A lot has definitely changed since 2016! House hacking is such a smart move, I’m guessing you used an FHA loan with a low down payment? I agree that stocks are less of a headache and less stressful than real estate, and diversifying between both is usually a good strategy. Stock returns from the past few years may not be the same moving forward. As for a cash-out refinance, yes, you do have to pay it back, but I’d personally consider taking out around 50% ($500K) instead of 75% ($780K) to keep the same mortgage payment. I’d also opt for a 30-year fixed mortgage again (I currently have 21 years left). If the interest rate matched my current one, my monthly payments would stay the same, and I’d use the funds to buy two more properties in cash to ensure they cash flow. I’d probably only refinance if the new rate was lower than my current one-then I could either lower my monthly payment or take out a larger loan while keeping the same monthly mortgage payment. Thanks so much for your kind words 😊
@@galbiller Unfortunately no, I didn't know about finance back then. I bought it with my then boyfriend , we put 20% down. We actually were the tenants when it went up for sale. Luckily we were savers so we were able to make that decision . When he abruptly left the picture in 2022 I bought him out, but that meant cash out refi at 1.15% highter interest rate than we had, plus a higher mortgage amount I had to pay him out a lot of his part of the equity that the place had appreciated. My mortgage definitely went up compared to what we had due to to that refinance. I feel like it'd only keep my current amount if the interest rate was a lot lower. I have 5.25 so I dont know that it will ever become worth it to me to refinance. I've owned it for 7 years but I reset it when I refinanced. I try to reframe it as that I bought the other half of the property at a significantly higher rate than the first half. But, its my home and a big piece of my financial security, and my ability to save and invest.
@@TheahLil Yes, the duplex isn’t just an investment, it’s your home and the stability and financial security is a huge benefit! Thanks for sharing your story! 🫶
It’s all about the time and luck. I bought my first property as a teenage in 2006. The $140k turned into $30k by 2008. I’ve done a lot of stocks too. I still prefer real estate. 2026 World Cup soccer ⚽️ around the corner. Properties next to these stadiums 🔥🔥🔥
I bought BTC in March of this year, I see it as gambling, I will probably be selling soon, hopefully before a pullback, it’s very volatile but I gamble with it here and there…
Stocks 1000%. It's easy to start. Can put $100 in ROTH IRA, HSA, 403B, 401K, 529, Individual brokerage accounts. So many options and don't require a lot of $$$. I much prefer investing in the stock market. I'm from NYC. I don't trust tenants and would hate to have a nightmare with people not paying their rent and you're not allowed to evict them. My husband and I have over $300,000 in investments and I refuse to buy a rental property because I cannot deal with the headache. In my opinion, the laws seem to favor tenants and there are enough to protect the landlords & real estate investors. Especially normal people like us who have our own families to take care of
Congrats on achieving over $300k in investments! 🤗 I agree that the stock market can be an easier starting point for many and less of a headache, especially in places like NYC where tenant laws can make property management more challenging!
My All Time Favourite Content Creator in the world and Gal never stop making Videos you are doing such a wonderful Job and I will always be your biggest supportive🥹💗💫
You'll always do better in the market if you buy pieces of a business. (Stocks) However, you must put the equivalent effort of a full time job to study the businesses you're buying. I'm talking 40+ hours a week. With real estate, the profit is at the buy. Never purchase real estate unless your getting a steal. I'm talking 70 cents on the dollar. You want a piece of real estate that you can buy on Monday at 70k and turn around on Tuesday and sell it for 100k. It takes time but they are out there. Cash flow from rent is just icing on the cake. Ideally it's not where you make your money.
Hi there! Thats why I buy index funds, that way I can diversify without a deep analysis, I agree that cashflow is not where you make your money. Thanks for sharing your perspective! 😀
![Felix "Unfair" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/Oswujxm2Ag0/mqdefault.jpg)
Do you think stocks or real estate is the better investment? Or a combination of both? 💸
Combination of both
@@kennykaijage5342 I think so too!
Stock, market went up +20% this year, +20% last year ... Real estate doesn't do that. Thank you for doing this video, I was hoping you would on this topic at some point.
@@doanduong7119 Hi there! The stock market had amazing years! This calculation made me want to sell everything and buy stocks instead, especially with potential repair costs looming as my properties age. But I'm also aware that I can't rely on these exceptional returns continuing in the stock market
Happy weekend, Gal!
Thank you! Have an amazing weekend! 🤗
You too!
Hey Gal! Great video! Passive income is amazing no matter how you get it. The one thing to consider here is that although you made an additional 80k on rentals,
You have to also consider the time you spent on owning, accounting, and stress too. The stocks are “set it and forget it”….where you have yourself a job with rentals! However the rentals also shelter some taxable income too! You should never sell…just use the “Buy-borrow-Die” system. No capital gains on cash out refinance :). Great strategy :)
Hey! Thank you so much for your thoughtful comment! Time and effort are huge factors to consider with rentals, although I have a property manager, the stress of maintanance and vacancy is a lot! But like you said, rentals have some amazing benefits too! Haha love this: "Buy-Borrow-Die" 😂
Oof, yeah , a lot of variables!!! I think whats very true is that the way it worked in 2016 is over, so I dont think buying rental property now is as good of a return. To me, I move toward stock investing. I do have one property, its a duplex that I house hack in. It's possible I'd be better off selling it and taking the cash to put into stocks, for wealth building, BUT I feel its invaluable for me as my secure home and keeps my epenses low. But, I will not be adding more real estate. There is less headache, less stress, less of a job in owning stock investments. I think its good to have some of both asset classes, but I would do majority stock. I myself am averse to leveraging, because I dont think its a good environement for that . If I cash out refi, dont I just have to pay that back ? :/ PS love this video topic, both yours and Shelby's are so facinating!
A lot has definitely changed since 2016! House hacking is such a smart move, I’m guessing you used an FHA loan with a low down payment? I agree that stocks are less of a headache and less stressful than real estate, and diversifying between both is usually a good strategy. Stock returns from the past few years may not be the same moving forward. As for a cash-out refinance, yes, you do have to pay it back, but I’d personally consider taking out around 50% ($500K) instead of 75% ($780K) to keep the same mortgage payment. I’d also opt for a 30-year fixed mortgage again (I currently have 21 years left). If the interest rate matched my current one, my monthly payments would stay the same, and I’d use the funds to buy two more properties in cash to ensure they cash flow. I’d probably only refinance if the new rate was lower than my current one-then I could either lower my monthly payment or take out a larger loan while keeping the same monthly mortgage payment. Thanks so much for your kind words 😊
@@galbiller Unfortunately no, I didn't know about finance back then. I bought it with my then boyfriend , we put 20% down. We actually were the tenants when it went up for sale. Luckily we were savers so we were able to make that decision . When he abruptly left the picture in 2022 I bought him out, but that meant cash out refi at 1.15% highter interest rate than we had, plus a higher mortgage amount I had to pay him out a lot of his part of the equity that the place had appreciated. My mortgage definitely went up compared to what we had due to to that refinance. I feel like it'd only keep my current amount if the interest rate was a lot lower. I have 5.25 so I dont know that it will ever become worth it to me to refinance. I've owned it for 7 years but I reset it when I refinanced. I try to reframe it as that I bought the other half of the property at a significantly higher rate than the first half. But, its my home and a big piece of my financial security, and my ability to save and invest.
@@TheahLil Yes, the duplex isn’t just an investment, it’s your home and the stability and financial security is a huge benefit! Thanks for sharing your story! 🫶
It’s all about the time and luck. I bought my first property as a teenage in 2006. The $140k turned into $30k by 2008. I’ve done a lot of stocks too. I still prefer real estate.
2026 World Cup soccer ⚽️ around the corner. Properties next to these stadiums 🔥🔥🔥
Yes it's definitely time and luck! Like a lot of things in life :)
Cash out refi rates are now 75% not 80%(for rentals) as it used to be making it difficult to pull more money out. Also, what are your thoughts on BTC?
I bought BTC in March of this year, I see it as gambling, I will probably be selling soon, hopefully before a pullback, it’s very volatile but I gamble with it here and there…
@@galbiller
Before you sell the BTC, I'd recommend watching the "Bitcoin, the smart asset class, Argentina" sone by Michael Saylor😊
Stocks 1000%. It's easy to start. Can put $100 in ROTH IRA, HSA, 403B, 401K, 529, Individual brokerage accounts. So many options and don't require a lot of $$$. I much prefer investing in the stock market. I'm from NYC. I don't trust tenants and would hate to have a nightmare with people not paying their rent and you're not allowed to evict them. My husband and I have over $300,000 in investments and I refuse to buy a rental property because I cannot deal with the headache. In my opinion, the laws seem to favor tenants and there are enough to protect the landlords & real estate investors. Especially normal people like us who have our own families to take care of
Congrats on achieving over $300k in investments! 🤗 I agree that the stock market can be an easier starting point for many and less of a headache, especially in places like NYC where tenant laws can make property management more challenging!
Gal is pretty
Thank you!
My All Time Favourite Content Creator in the world and Gal never stop making Videos you are doing such a wonderful Job and I will always be your biggest supportive🥹💗💫
Thank you so much for your kind words and endless support 🫶
You'll always do better in the market if you buy pieces of a business. (Stocks) However, you must put the equivalent effort of a full time job to study the businesses you're buying. I'm talking 40+ hours a week. With real estate, the profit is at the buy. Never purchase real estate unless your getting a steal. I'm talking 70 cents on the dollar. You want a piece of real estate that you can buy on Monday at 70k and turn around on Tuesday and sell it for 100k. It takes time but they are out there. Cash flow from rent is just icing on the cake. Ideally it's not where you make your money.
Hi there! Thats why I buy index funds, that way I can diversify without a deep analysis, I agree that cashflow is not where you make your money. Thanks for sharing your perspective! 😀