I need to unlearn the basic rules of property investment learned in Asia

1. Except NYC, Queens (not long island), JC, and some parts of NJ, most other U.S. locations have no real (i,e. inflation adjusted) appreciation. Bayonne is one such location.
2. due to the typical size, total cost of owning a home {tax … HOA … mtg interest … wood house repairs … lawn … heating…} is much higher in U.S. than in Asia, and often higher than renting.
3. Bigger isn’t better. The bigger the house, the higher its running cost, but Americans are used to big houses.
4. repair cost is much higher in US due to labor cost and wood structure. Many U.S. owners prefer DIY repair.
5. In China and Singapore, you can leave a property vacant, but in U.S. pTax will force you to rent it or use it yourself.

Brian of RTS said owning a home is probably an expense rather than an asset. Brian’s view probably originated from the renter’s perspective. If there’s only small appreciation, then the additional outlay [1] of the home buyer compared to the renter basically contributes to the appreciation .. 羊毛出在羊身上. There’s no advantage to either option.

[1] including maintenance burden (none for the renter)

The renter has many advantages such as flexibility.

Brian countered every point I made about housing as an investment.

• rental income — is the more predictable “return” in the U.S. context. Capital appreciation is erratic and may not happen in many U.S. states.
• appreciation — in Asia and in NY region .. yes. The trend has been strong.
• maintenance cost — is lower in Asia but in U.S., it eats into your rental income
• pTax — much lower in many parts of Asia
• population growth — In Asia and in NY region, there’s growth, but not so much in U.S.. I see this as a fundamental factor. BGC and Cambodia beats SG in this respect.

Brian concluded that many of these factors are location-specific.