53% RETURN ON INVESTMENT... minimum!!!
As the stock market struggles to earn modest single digit returns real estate continues a 35 year track record of returns in excess of 50%.
How is this possible??? Let's look at the numbers.
$10,000 Investment Capital
Stock Portfolio= Avg. Return of 8% ($10,000)
Real Estate= Avg. Return of 6% (35 year U.S. Average)
The Stock Portfolio would generate an annual return of $800 per year.
$10,000 invested in Real Estate would easily buy a $100,000 property with only 6% appreciation would generate a return of $6000 per year.
What about the Bubble???
Recent years have created unusually high returns in real estate. The cause... low interest rates an improving economy. Double digit apprecation rates were not uncommon during this period. Historically this is not normal. So what is normal???
The 35 year national average of appreciation in the U.S. is 6.6%... this is much more conservative and a good place to start as a new investor. Of course appreciation rates can vary drastically in different areas of the country and even on the "neighborhood level". What causes these changes???
Location, Location, Location,
The key factors in making the highest percentage returns...
1.\ Waterfront Properties
2.\ School Disctricts
Finding the best investment properties should ALWAYS be a mathmatical discussion. Request to speak with a professional in your area who specializes in investment real estate but most importantly the numbers.
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