2007-01-26 10:23:05 · 7 answers · asked by Soundguy 2 in Business & Finance ➔ Investing
Depends. It could be the worst, too...
Generally speaking, you want to invest in real estate when prices are relatively low compared to rents, so that you can have high operating yield. Right now, prices are rather high, so the timing for real estate investments is not the best...
2007-01-26 10:36:48 · answer #1 · answered by NC 7 · 0⤊ 0⤋
When you say Real Estate Investments it can mean a lot of things. There are broadly 4 categories within the real estate investments:
1) Your Own Home. This is the best real estate investment. This is because you get to live in it and at the same time you are silently making money. Home values have historically outpaced inflation. That means if you buy a home today and live in it for 30 years it will be yours. You will not have to pay any more rent. And generally after about 10 years what you pay will be much smaller than other folks pay for rent. Word of caution:Buy only slightly larger than the apartment you would want to live in. If you buy too big the expenses will make you run out of money.
2) Second home: Generally not a wise investment. You have to make 2 payments now, +taxes, insurance and upkeep.
3) Home Rental and Apartment Rentals: A great investment if you can handle the renters, maintenance and other headaches that come with any business. Start small and see if you can handle. Most people cannot handle it. The other problem is that you need a lot of down payment for larger properties; No matter what 100's of Real Estate Free seminars by people out to rob you of your hard-earned dollars would like to make you feel.
4) Commercial Property Rentals: This includes offices, industries, etc. This is a very risky investment because you could be sitting on a vacant prroperty for months or years paying the mortgage and losing money. You cannot even sell a vacant property easily. It could then go into foreclosure and ruin your credit. If you find a great property making lots of money the seller would want so much money from you that you would end up making hardly anything but a lot of risk today. If you can hold on to these properties for a few years then you stand to make some good income.
2007-01-28 01:35:13 · answer #2 · answered by Sam P 2 · 0⤊ 0⤋
Not really. There is too huge problems. One is capital. You need a lot of money to start and it's very tax heavy. The second problem is the eventual financial barrier. Wages are not beating inflation on average yet real estate is. This means that the greater the time goes by, fewer buyers are out there to buy the property and for you to make a healthy percentage. Where I live, the price of a house is $640,000 and the average wage is $45,000. If you owned the house outright, the price of the house in 10 years would have to be able to sell for almost $2.4 million to compete with the historical rise of the SP 500. Meanwhile the average wage would probably be $50,000 or less.
2007-01-26 19:10:09 · answer #3 · answered by gregory_dittman 7 · 0⤊ 0⤋
I'm convinced that the very best investment a person can make is to educate themselves with the best college education he or she can afford. Once that goal is achieved, a fine job that you will enjoy is the next goal. I think a 401k and IRA (Roth or tradional) combined is the best investment for your future.
2007-01-26 23:30:48 · answer #4 · answered by Mike S 7 · 0⤊ 0⤋
A good investment but takes more money at the start than other investments.
2007-01-26 18:32:35 · answer #5 · answered by Jim C 6 · 0⤊ 0⤋
Yes, there is no doubt. If you have the money go ahead. It is a dead cert.
2007-01-26 18:49:57 · answer #6 · answered by Anonymous · 0⤊ 1⤋
No.
2007-01-26 20:31:19 · answer #7 · answered by Anonymous · 0⤊ 1⤋