residential real estate as investment
There seems to be a high penalty for owning residential real estate. With no mortgages, my home expenses (property tax and insurance) run a reasonable $8500 today (for 2 modest homes). By the time I am 95, that figure grows to over $140,000/year. This does not seem reasonable. It is by far the highest expense in my spending report in the later years. Is there a way to rachet this climb in property tax and insurance to a more reasonable growth rate ? I know, next question is, what is reasonable ?
With this feedback, I would assume no one would own vacation property, unless they rent it out. Then they would have to recieve enough rent to cover future propterty tax and insurance.
Seems like owning residential property is a horrible investment.
What am I missing here ?