| RE:Real estate question... |
Subject: RE:Real estate question... by CentralCoaster on 2008/2/11 17:22:15 I think your point is if you buy low and sell high, you still have to rebuy high to have a place to live. And you don't really win until you cash out and move to the boondocks. But the way to win in real estate in a strong market is gaining equity against money that isn't yours, by spreading yourself thin. It's also the exact same way to lose in a bad market. :tongue: Invest $50K in a $500K house. House goes up 10% in value one year, you sell it for $550K. You just made 100% return on investment (in simple math). Now you have $100K to invest and the market's only gone up 10%. Put that 100K into the same house, and you may make only $50K more next year. Spread it into 2 homes, and you have the chance at making $100K. Wash, rinse, repeat. |
