Where Should I Invest My Money?
There are a lot of vehicles were you can place your savings and it all depends on the risk you are willing to take.
Investing your savings in a bank CD may be less risky, but the return on investment may pay less than 1%.
It may be easier to bury it in the backyard.
Investing your valuable savings into the volatile stock market and letting someone else handle your money may pay a little higher interest, but it could also disappear on a down market and keep you waiting 5 years for it to return to the original price.
This money may also be better buried in the backyard.
Real Estate is where we should be investing our money in these times.
Prices for Real Estate are down approximately 35% since the high of 2005.
Interest rates are down to the lowest in 40 years, loans are getting easier to come by and good properties are abundant.
The large amount of foreclosures and short sales are keeping prices low.
If we want prices to start increasing we need consumer confidence to start increasing.
The media can help us here by printing more positive news articles about real estate.
The problem is that bad real estate news sells more newspapers than good real estate news.
At the present time you can buy houses in Orange, California for $300,000 to $400,000 which can be rented for $2500 per month.
When you include your house payment, taxes, insurance and maintenance on a $350,000 purchase with 20% down you have a monthly expense of $2028.
00 PITI (Principle, Interest, Taxes, Insurance}.
Which gives you a monthly profit of $472.
00? In addition you will receive a tax write off on this property of $5100.
00.
The yearly income will be $5664.
00 or .
08% of your investment.
Where else can you make 8% on your investment in this market? If you hold this property for 5 years you will see appreciation of 50% which means you will double your investment just in appreciation.
This property should be worth $700,000 in 5 years, plus the $28,320.
Dollars in net rent income.
You will make $378,320.
00 on your original investment of $70,000...
What stock do you know that is paying this kind of dividend? Smart investors are buying these properties up daily and either renting them our or turning them over for a quick profit.
Investing your savings in a bank CD may be less risky, but the return on investment may pay less than 1%.
It may be easier to bury it in the backyard.
Investing your valuable savings into the volatile stock market and letting someone else handle your money may pay a little higher interest, but it could also disappear on a down market and keep you waiting 5 years for it to return to the original price.
This money may also be better buried in the backyard.
Real Estate is where we should be investing our money in these times.
Prices for Real Estate are down approximately 35% since the high of 2005.
Interest rates are down to the lowest in 40 years, loans are getting easier to come by and good properties are abundant.
The large amount of foreclosures and short sales are keeping prices low.
If we want prices to start increasing we need consumer confidence to start increasing.
The media can help us here by printing more positive news articles about real estate.
The problem is that bad real estate news sells more newspapers than good real estate news.
At the present time you can buy houses in Orange, California for $300,000 to $400,000 which can be rented for $2500 per month.
When you include your house payment, taxes, insurance and maintenance on a $350,000 purchase with 20% down you have a monthly expense of $2028.
00 PITI (Principle, Interest, Taxes, Insurance}.
Which gives you a monthly profit of $472.
00? In addition you will receive a tax write off on this property of $5100.
00.
The yearly income will be $5664.
00 or .
08% of your investment.
Where else can you make 8% on your investment in this market? If you hold this property for 5 years you will see appreciation of 50% which means you will double your investment just in appreciation.
This property should be worth $700,000 in 5 years, plus the $28,320.
Dollars in net rent income.
You will make $378,320.
00 on your original investment of $70,000...
What stock do you know that is paying this kind of dividend? Smart investors are buying these properties up daily and either renting them our or turning them over for a quick profit.
