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Updated over 3 years ago,

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Investing when renting is too low.

Posted

Hi, I’m from Guatemala and I’ve read some real estate books and listened to various podcasts and most of them assume that the rental market almost always is going to be high enough to “clear” the expenses of the buying market. In my experience here in my country almost any real estate investment loses money because renting is significantly cheaper than buying, therefore taking into account the income of rent against the expenses of investing, it isn’t going to make a profit. Is this something that happens in other markets? Is this because buying is overpriced vs renting? Or is this because I haven’t looked deep enough into the market?

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