Is Homeownership Still Worth It?
What should be equally considered are the other costs associated with the investment. Chief among these are the cost of money… that is the interest rate you will pay for the leveraged portion of your investment otherwise known as the mortgage. Today’s rates are at historical lows. The Fed has said they will hold the line for a while… probably through the end of the first quarter of 2011.
As an investor you’ll want to parlay these two factors to your advantage to get the real best deal!
Admittedly the following is anecdotal… But I’ll remind you that I’m no Warren Buffet and I have been successful in real estate investment… Just to cite one example… I purchased a rental property in 1995 for $38,000… It took a $4000 investment and some guts to get started. Over time, we’ve made $17,000 in repairs/improvements and paid the house off. It currently would appraise for $150,000 down from the $185k it would have brought three years ago… Have I lost $35,000? Or have I made $95,000. Truth is neither! I won’t know what I’ve made or lost until I sell it. But until then I‘ll just keep depositing those $750 rental checks each month!
We’ll continue this discussion next week… until then…
May the Market be with you.
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- The Scam Of Homeownership (realestateradiousa.com)
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