Whatcom County Housing News, July 2009
One key to successful investing is a balanced portfolio. Most financial advisors recommend that investors have some liquid savings, some fixed return instruments and investments with equity growth potential. Real estate, as one element of an investment portfolio, offers the potential for equity growth as well as monthly cash flow. Refelected below is a comparison of the before tax equity accumulation potential of three investments:
Savings
Investing $40,000 in a CD at 5%, compounded daily, grows to $84,675 in 15 years.
Mutual Fund
Investing $40,000 in a mutual fund appreciating at 10% grows to $176,090 in 15 years.
Real Estate
Investing $40,000 (20% down) in a $200,000 rental property, appreciating at 5% annually, and assuming a 15 year fully amortized loan used to purchase the property, net proceeds in 15 years would be $386,680.
The numbers speak for themselves. More money has been made in real estate than any other investment tool. Are you ready to wealth build?
If you want to buy or sell real estate, please call Jacob Baklund at 360-961-0796.
*This above information was supplied by Asset Preservations Inc and Stewart Title of Bellingham*
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