Many people discussing real estate investment posts only focus on the rent-to-price ratio, as if no one pays attention to the lease term.

2026-02-23 11:13:29

For example, if a house has an annual return of 3.3%, but the house was built in 1986 with a 70-year property right remaining 30 years. If the return remains at 3.3% in the future, it would take exactly 30 years to break even. However, the property rights will have expired by then, so it doesn’t seem like a good deal.

The construction quality of a house built in 1986 is definitely not as good as it is now. After 70 years, the condition of the house is uncertain.

After thinking it over, it seems like this deal isn’t very worthwhile.

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