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Real estate has been very good to me. I trust it more than the stock market, and it's something that may go up and down in value, but even at rock bottom value it is a tangible asset that you can see, touch, feel and sell if necessary, and you have hands on control in the management / profitability. The trick is purchasing it right and managing it correctly.
I've got a 100 acre farm purchased in 1990 for $75,000 that would easily sell for $750,000 today. It's been cranking out income of +/- $7,000 per year net all that time. That income could easily be doubled or tripled if I chose to row crop farm it rather than current use. Have added two other smaller pieces of farm ground since. Paid a bit more for these pieces, but they have close to doubled in value and spin off some income also.
Have a commercial rental property purchased in 2000 at about $350,000. It hasn't increased much in value over that time, likely pretty flat, but spins off approx. $25,000 net income annually all that time.
Bought a lake home in 2010 for $450,000 thinking that was bottom of the market, and that I might make some serious money on a sale in a few years. Prices in that location have not recovered yet to pre 2008 levels, but it would be easy to sell pretty quick and get my money back. Meanwhile have been enjoying it for the cost of taxes and upkeep.
I've got a 100 acre farm purchased in 1990 for $75,000 that would easily sell for $750,000 today. It's been cranking out income of +/- $7,000 per year net all that time. That income could easily be doubled or tripled if I chose to row crop farm it rather than current use. Have added two other smaller pieces of farm ground since. Paid a bit more for these pieces, but they have close to doubled in value and spin off some income also.
Have a commercial rental property purchased in 2000 at about $350,000. It hasn't increased much in value over that time, likely pretty flat, but spins off approx. $25,000 net income annually all that time.
Bought a lake home in 2010 for $450,000 thinking that was bottom of the market, and that I might make some serious money on a sale in a few years. Prices in that location have not recovered yet to pre 2008 levels, but it would be easy to sell pretty quick and get my money back. Meanwhile have been enjoying it for the cost of taxes and upkeep.
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