Quote:
Originally posted by hershie
I guess a lot of people in this thread are either too young or don't remember the real estate crashes of the early 80's and 90's...where lots of seemingly great properties and developers and ordinary property investors got killed or when interest rates were 20% when it came time to re-finance not too long ago. Don't think that real estate is a sure thing by any stretch and relative to stock investments, there is enough literature out there that will tell you that even a simple home owner would have been better off over any 25 year period in the 20th century putting the down payment on a house, yearly taxes and the difference between rental rate and mortgage into a balance equity mutual fund and would have done better than the home owner who burns their mortgage after the 25 years.
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Yep. Real Estate is a great investment, but not 100% of the time. If you overpay and the market becomes a buyers market, good luck trying to sell.