Originally posted by slapass
Real Estate does 3% per year.
Real Estate does 3% per year.
edit: fiddy
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are you not considering that you can rent these homes out? lets say i bought a house for 100k. it will go up at least 3k over a year. over that year i rent it out for $1,000 a month for 12 months. i pay about 2-3k in taxes and insurance. thats at least 10%. plus the fact that people can buy the same house for 10k down and its not really a 100k investment. then they just have the person whos renting pay off the mortgage for them while they get the appreciation of the house.
edit: fiddyI host with Vacares -
i agree, buying and flipping houses you cant really make money unless you're an expert and know what you're doing. if you do it for a living you have your own real estate license so you dont have to pay for the costs, and you have to search and search for the good deals and know how to get them down on the price. unless you find a really good deal on a house you arent going to make any $.Originally posted by Alex from Montreal
Lets take the example earlier mentioned and say you purchased a $200,000 residential property with a $40,000 cash down and and resold at $280,000 a few years later. What alot of people will tell you is that they made a 100% return on their investment (ROI).
But they tend forget the commission they paid for selling the property, the interest paid on the mortgage, the property taxes, insurance, maintenance and repairs, closing costs, etc.
In the long term, stocks beat real estate. But people prefer real estate because they can see it , touch it and have more direct control over it...
I host with VacaresComment
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Thanks for that postOriginally posted by Alex from Montreal
Lets take the example earlier mentioned and say you purchased a $200,000 residential property with a $40,000 cash down and and resold at $280,000 a few years later. What alot of people will tell you is that they made a 100% return on their investment (ROI).
But they tend forget the commission they paid for selling the property, the interest paid on the mortgage, the property taxes, insurance, maintenance and repairs, closing costs, etc.
In the long term, stocks beat real estate. But people prefer real estate because they can see it , touch it and have more direct control over it...
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