Quote:
Originally Posted by strat61caster
A. Looking at value at the bottom of a recession is a hindsight 20/20 move
B. Yes, the place I'm renting now doubled in value
C. Now look at what that $230k would be worth in an s&p 500 index or if you had been a big risk taker and put it in Microsoft, or Apple or Amazon or Disney. Don't forget to subtract what you paid to maintain the property over the past decade when comparing which 'investment' is more profitable.
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Hindsight move? As for indicators on the economy, the stock market and the real estate market, there were plenty of signs that is was time to buy. The crash happened tail end of 2008, the DOW hit rock bottom somewhere around March 2009 and was around 7000. By the time I bought 3 years later the recovery was well underway. In July 2011 when I started looking the DOW was about 12,000 up 70% from the bottom. The Fed had slashed interest rates to almost 0 but the mortgage market was so screwed up financing was problematic. Then there's all of the homes in foreclosure that the banks were carrying. They wanted to unload them,,, and if you were a cash buyer they were very accommodating.
Your original comment was you cant double your money in the real estate market in 10 years and that's just not true and I showed you how this property did. Real estate can be a great investment when purchased correctly. The trick is learning how to buy the right one because not all do.
Look, if you want to invest everything in the market and rent for the rest of your life, have at it. Realistically it's the only place to put 401 and retirement plan money so I have plenty there as well, just not everything is there. Imagine you were heavily invested in 2008, with plans of retiring 12/31/08 and it all goes to hell. Lots of people lived that.
As a sidebar, my investment was in one of the most beautiful places in the world. People come here from all over the country to dive and fish. Remember, life happens while you're saving for retirement.