invest in high dividend ETFs or buy to rent?

M

magmiv

Historically, which has been the higher returning choice? investing in an ETF / index or buying a property to rent?
is there a website that details this?
can anyone recommend an ETF with a relatively high dividend? or even a blue chip reliable stock? The reason an ETF is preferred is that they're stable and won't crash unlike a stock which can go to zero.
thanks in advance
 
Quote from magmiv:

Historically, which has been the higher returning choice? investing in an ETF / index or buying a property to rent?
is there a website that details this?
can anyone recommend an ETF with a relatively high dividend? or even a blue chip reliable stock? The reason an ETF is preferred is that they're stable and won't crash unlike a stock which can go to zero.
thanks in advance
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It's not really an apples-to-apples comparison and depends on what you bought, where you bought, and when you bought it.
Unless you have a lot of capital and can withstand periods of vacancy, I think it's better to pursue actual ownership via REITS,etc.

ETF can crash hard just like a stock. Take a look at the US Real Estate Index (IYR) from 2007-2009 when it dropped like a stone. It may not have gone to zero, but that's not much consolation when you're down 80%.

You can do some scanning for dividend yields using finviz.com and also dividata.com.
 
Sometimes it is stupid though.

I move out in 2 months from a 130 square meter flat with electrical flaky grid and an idiot landlord to a rented 250 square meter house where the contract says "do what you want unless you lower the value of the building" that is CHEAPER than the damn flat ;)

First thing we do is replace half the power grid with something that is worth it ;)
 
If i correctly understood, the question is more: "i am planning my retirement what I should do with my spare cash? Buy a house or some ETFs?"

My personal advice is: both
60% equity in a house that you will rent (40% loan from a bank) and 40% ETFs. (maybe "bond based" instead of "stock based")
 
I'd use a buy vs. rent calculator on the house, unless you're buying for non-financial reasons (customization, unavailability of exact house you want via rental) and consider the rest of your funds part of your investment portfolio.
 
INvest in dividends unless you have the expertise to mamage a rental. Anyone can make up a spreadsheet for a project. Can you run the operations and the business side of it (negotiating rents and financing, etc).
 
Liquidity should also be a concern. You can bail on the stocks with a mouse click; if you get stuck in another bad real estate market, your property could be un-sellable. Neighborhoods can go to hell; the local tax assessor could decide to jack your taxes up; property insurance could go skyward...there's alot of variables that have entered the picture in the past few years with so many municipalities in the tank.
 
Quote from denner:

Liquidity should also be a concern. You can bail on the stocks with a mouse click; if you get stuck in another bad real estate market, your property could be un-sellable. Neighborhoods can go to hell; the local tax assessor could decide to jack your taxes up; property insurance could go skyward...there's alot of variables that have entered the picture in the past few years with so many municipalities in the tank.
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Liquidity risk goes both ways. No margin calls on a house.
 
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