New Townhouse Development Purchased

Real etatse you gave a twenty year hypothetical situation ..let me give you a twenty-two year fact based situation .Twenty-two years ago I bought a house for $ 47,000. today I constantly get offers in the $ 700,000. range. That's for the lot Twenty years ago I bought a three unit building next door to my house for $ 56,000. The land under it is also worth $700,000.!!Now because they're right next to each other and can be combined into one big parcel developers throw in an extra $350,000-$ 400,000. in their offer.Like one person mentioned " they ain't making any more "I'm also very familiar with the " income property" aspect of real etatse and believe me..you can make a down payment and from there on , tenants pay the mortgage, the taxes, the repairs,the insurance .and your profit. But at income tax time you're barely making anything ( on paper) because of depreciation and write-offs.I love to invest and a 7% return is a bad year but even twenty good years would never put you in the same ballpark as real etatse .Unless of course you buy the proverbial "swampland" or maybe the guy next door starts raising pigs !!!P.S. The REIT investing that someone else mentioned is one way you can better that 7% per annum you were forecasting.You keep hearing about a "real etatse bust" on the news, etc but believe me that is " homebuilders" that is not all real etatse. Income/ commercial property the way to go.References :