Look at what the Socialist wing (soon to be mainstream) of the Democrat party has to say about investing:
In a way he is right, but not in the way he thinks. Landlords do not have a Constitutional right to a 12% return. They have a Constitutional right to property. The lend that property out to people for a fee. They might turn a profit, or they might have a nightmare tenant who does $50,000 in damage to a $250,000 rental property. They might have a tenant who refuses to pay and needs to be evicted. COVID proved that the government could simply refuse to allow you to control that property by preventing you from evicting someone who isn’t paying.
Every time you tie money into an investment, there are costs, including the cost of those who default, repairs, taxes, insurance, fees, and more. At the end of the day, some investments are riskier than others. That risk has to be compensated for. Putting money in a CD or a government bond is generally low risk, and therefore represents the lowest return. One year t-bill rates are at 4% right now. That means if an investment is higher risk than a t-bill and isn’t paying more than that, you are better off with lower risk for the same return. Even savings accounts and CDs are at 4.1% or thereabouts.
For 2025, ETFs in the stock market returned about 19%. Rental property is actually a higher risk than is a stock market ETF like SPY (17.72%) or QQQ (20.77%) but is not as profitable, especially when you are in a socialist location like Mamdani’s NYC. That’s why I got out of the rental market earlier this year and put the profits in the market.
Compare the returns for 2026 to date:
- My portfolio: 7.26%
- S&P500: 8.94%
- NASDAQ: 8.35%
- DOW: 6.13%
- Gold and Silver Index: -20.10%
The annual return on my rental was an average of 10.66%. That isn’t very large when you consider market returns over a similar time frame. In fact, the same amount of money invested in the market would average about 10.8%. Renting is a lot of risk and work for not much better of a return.
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