I was having a conversation with a fellow Handball player yesterday who was visiting for a game. He invests in real estate, and has for a number of years.
What he was telling me was that he couldn’t buy houses fast enough at this time. He’ s been going in with cash, and buying rental properties. His argument was that you could not replace the houses that he is buying for the cost that he gets them. That was what he considered a good investment. Buying something under value while everyone is scared. Don’t I wish this guy lived closer to me? You bet.
Can one be building long term wealth right now? You bet. This is the time that those who have money, get more money. However, the unfortunate downside is those that don’t have the money..things aren’t getting better for them.
Even if you can’t pay all cash for a place, but have some money that you might want to reinvest. Either sitting in a savings account or bond, or perhaps in the stock market.
If I could help you find a place that had a 10% annual return…and you had to borrow at 6% to make it work. You are still making 4% on borrowed money, while some renter is paying off the principle balance. If you can put something like that on a 15 year note, a $30,000 investment on a $150,000 home would be paid off in 15 years. So even with no appreciation, one could own free and clear the home…then all rent coming in would be strictly income. Do that 10 times, with a rent of $1000 a month per house…in 15 years, that could be $10,000 of income a month.
I could retire on that.
Whatever your financial situation is, if you would like to sit and discuss some real estate related financial goals, I would be happy to share some of my knowledge with you.
And as always, if looking for Ashland Oregon Real Estate, don’t forget to visit my website. www.AgentInAKilt.com