2007-08-07 15:38:53 · 8 answers · asked by oliver 1 in Business & Finance ➔ Renting & Real Estate
There is no safe investment. Investment involves risk. The stock market will give you on average a 8-12% return on your money. In real estate, you can buy homes to rent where you start off with 20-30% equity already built in.
A good real estate investment (as far as buy and hold) will give you a 10% cap rate (NOI/cost of property) meaning a positive cash flow.
If you have any more detailed questions specific to your market, drop me a line at halln27@yahoo.com. I'm in the real estate business.
As far as "real estate depreciating" -- that really depends on your market. In California you can't buy anything that will make you money. Spending 1mil on a house to rent it out for 1000 a month makes no sense for anyone involved. In my market, you can buy a home for 100k and rent it out for 1000 per month.... that is a good investment. Real estate is local.
2007-08-07 15:43:56 · answer #1 · answered by n 2 · 0⤊ 0⤋
It is very true. Even when the market is down as it is right now - always have a reserve though. If you have a property that you are going to rent, always save for some months when your present renter move out and you have a property that's vacant - you still have to pay for the monthly due on it.
Back are the days, that only those who have a salary of 6 figures are the one that can invest in the real estate business although there might be a chance that it will go back to years like in 2003 - 2005 where even those people who hardly make a living are approved to buy a 500,000.00 house that's most of them are in foreclure right now and in almost homeless position. Their credit are so dented that even renting an apartment they cannot be approved of.
2007-08-07 15:50:56 · answer #2 · answered by yahoooo! 5 · 0⤊ 0⤋
No, it's really not a safe investment. A malicious tenant can do a lot of damage in short order, and in some states it is next to impossible to evict anyone.
Real estate can be a good self employment opportunity, but it isn't merely an investment like buying stock and holding it. It's a job.
2007-08-07 15:54:39 · answer #3 · answered by open4one 7 · 0⤊ 0⤋
Real Estate, like all investments, is always risky.
The better options are storage facilities, mobile home parks and apartments with cap rates of 7 to 12. For more info. on commercial investing you can read about it this web site....
www.loanforbiz.com and the broker will answer any questions you have.
2007-08-07 15:55:11 · answer #4 · answered by ANGEL Baby 3 · 0⤊ 0⤋
over time, real estate is the best performing investment because you get the benefit of appreciation, interest deduction, depreciation, leverage and equity build up. no other investment vehicle does that....none of them. you get it all with real estate, and the key to keeping real estate is to put a reasonable amount down, say 20%, and buy it at a lower end price (like you can in this market with still low rates) and located in the path of development. this strategy will likey produce double digit annual returns over time.
2007-08-07 15:50:46 · answer #5 · answered by ? 3 · 0⤊ 0⤋
Real estate is usually the safest investment.
2007-08-07 15:42:26 · answer #6 · answered by drgnotary 3 · 0⤊ 0⤋
Flipping properties is a very very paying employer. you are able to easily get fix and turn Loans type any reliable stressful money Lender and make investments interior the employer. then you extremely've the possibility to be back in that specific same technique after making a effective turn of a house. you additionally can hire out a supplies, and it honestly relies upon on a individual's concept and concepts approximately destiny in genuine supplies investment.
2016-10-09 11:10:12 · answer #7 · answered by record 4 · 0⤊ 0⤋
It was 2-3 years ago, but not so much anymore. Many buildings are actually depreciating now.
2007-08-07 15:42:47 · answer #8 · answered by servo46250 2 · 0⤊ 0⤋