Where should I invest my money?

Where should I invest my money?

By Ron

Accornero

Real Estate is where we should be investing our money in these times. Prices for Real Estate are down approximately 35%, Interest rates are down and the lowest in 40 years, loans are getting easier to come by and good properties are abundant. What else do you think needs to happen? I don't think that much else has to happen other than having more consumer confidence.  The media can help us here by printing more positive news articles about real estate.  Even with all the talk we hear about banks releasing a large number of REO's from foreclosures I don't think the market will become flooded with properties.  I have been hearing this talk of releasing properties for three years and it has not happened yet.

At the present time you can buy houses in Orange, California for $300,000 to $400,000 which can be rented for $2500 per month or better. When you include your house payment, taxes, insurance and maintenance on a $350,000 purchase with 20% down you have a monthly expense of $1822.00 which gives you a monthly profit of $678.00. In addition you will receive a tax write off on this property. The yearly income will be $8,136.00 or 13.56% of your investment. CD's are not paying this much money these days. If you hold this property for 5 years you will see appreciation of 50% which means you will double your investment just in appreciation. This property will be worth $700,000 in 5 years, plus the $40,680 dollars in rent income. You will make $390,680.00 on your original investment of $60,000... What stock do you know that is paying this kind of dividend? Smart investors are buying these properties up daily and either renting them or turning them over for a quick profit.

Now is the time to make money in real estate.  When the market turns and start up good buys will be hard to find and many investors or buyers will be afraid to take the risk.  I know where I am putting my money.