Investing in Residential Rental
Should I are shouldn't I invest in rental property at this time? Great question as always yet very relevant in today's market when trying to choose where a reasonable place to invest your money. The choices are always the same cd's, stock market, precious metals or real estate.
So how does real estate stack up? Since 1968 in Yellowstone county residential real estate has appreciated at 6% rate going from $17,933 to $196,847 today. The DOW has appreciated at 5.85% going from 855 to 8083 today. Gold has appreciated at 7.9% going from $39.31 to $833 today. Each invest has it own pro and cons the question is which is the best primary investment for your security.
Gold, while a store of value, has several issues, no income produced, how do you store it securely with controlled access by you, how do you trade it for something you want, how do you prove to buyer it's what you say it is?
Cd's and Bonds easily purchased and sold, Cd's and Bonds can produce income, can either be taxable or non-taxable easy to store with a reputable brokerage or a safety deposit box, the con's inflation can destroy value, bond issuers financial condition can go bad.
Stocks easily purchased and sold, stocks can produce dividends for income, easy to store with a reputable brokerage, the con's how do I select purchasers, how do I manage my sales, when do I trade? Markets go both up and down; companies invested in can have a financial turn for the worst.
Real estate can easily be purchased and sold, can leverage investment with debt, can produce income stream, can tax shelter income stream, can sell trade up and defer tax consequences, can have a tenant pay off the debt you used to purchase. Con's it takes hands on management or hiring a property manager, markets go both up and down.
The above numbers and the chart below give you some food for thought. If you have any question please contact me.
Comments (1)Subscribe to CommentsComment