Better to use leverage and do the same thing with a Dow component.
"Experts say housing is a lousy investment and always will be"
- Thread starter Clubber Lang
- Start date
Better to use leverage and do the same thing with a Dow component.
I had relatives that made, not a small fortune but a real fortune buying properties in the 1930's... the guy was a security guard!! They worked a farm for some people that were too old to work it themselves and inherited it, they had food and shelter from that gig and they invested the income from the security guard gig into farms and within their own lifetimes they had some WEALTH... she was a looker too, that always helps in life... sitting around worrying about how everybody else is doing was not their style, they just WENT FOR IT and devil take the hindmost...
All those costs of real estate can be mitigated, do your own repairs, pay cash for it, discount realtor services... it's doable and besides, you have to live somewhere, buying a house is a good way to do that, if you have to move, make sure you know local realtor and property management people so you can keep it rented...
All those costs of real estate can be mitigated, do your own repairs, pay cash for it, discount realtor services... it's doable and besides, you have to live somewhere, buying a house is a good way to do that, if you have to move, make sure you know local realtor and property management people so you can keep it rented...
And will likely be again...once the government gives up in its efforts to artificially prop up the RE market... and natural deflationary forces set property prices at true value.
When we got married my wife insisted we buy a house and pay for it with a 15 year mortgage. Smart girl. The house is now paid for and we have a stable place to raise our children. As an added bonus, we bought when prices were at a low point in Southern California and the house is now worth a lot more than what we paid for it. Admittedly, that was just blind luck. But even if the price hadn't gone up, I would still call it a great "investment" if you broaden the meaning of the word to include stability for our children and sleeping soundly at night because we don't have a mortgage payment to make.