Are real estate investments really beneficial? (mutual funds, margin, cash, mortgages)

[Kripson]

My Regards to the community, I am working in a private firm and really want to secure my future by doing some investments as I can’t be so dependent on my current job forever for all my basic needs. . Can somebody help me, to make me decide that where should I invest my money to get long term profits?

[golfgod]

For long term returns your best bet is a good combination of MUTUAL FUNDS. At a minimum; growth, growth and income, international.

Real estate "can" be good! But for it to work you've got to BUY BELOW MARKET. That means a minimum of 30 to 40% below market. Not many can do this!

Real estate can only appreciate at the rate of the increase in incomes to pay for it! At least in the long term. For every person that made money in the bubble of the last 8 years there are 10 people who have lost, and continue to lose money on the crash! I hang out on several real estate investment sites and I can tell you that for every 100 people that invest in "get rich quick DVD series", there isn't even ONE person who ever makes money investing in real estate.

BTW, I've been a RE investor for 30 years. Yes I've made a lot of money on it, but I've lost money on some deals and I'm currently dealing with a "difficult" situation. This situation by the time it's over may cause me to lose money on something that's been only a marginal producer for the last 5 years.

Do yourself a favor and study up on "no load" mutual funds.

golfgod

[cpg35223]

Having invested successfully, I think a balanced portfolio is critical. What's more, you really have to research where the opportunities lie. For example, I have money in commercial real estate at the moment. Not A level office space, but the meat and potatoes stuff such as warehouses and the like, mostly in geographic markets where steady long-term economic growth is an absolute certainty. Pretty much, even in this economy, anything from North Carolina to Texas (with the exception of Florida south of Jacksonville) is a sound investment.

[tallrick]

Here you would be taxed 2% per year on an inflated "value". You lose money in Florida real estate.

[jamesandveybe]

I am waiting for the real estate agents to chime in to tell you how anytime is a good time to buy... as long as THEY are your agent.

Timing the cycle is critical in RE investing. The only home I own, I live in. My retirement is secure through other investing... I would never trust my money to grow in something dependant on what other people did or thought.

[renter07]

Originally Posted by jamesandveybe

I am waiting for the real estate agents to chime in to tell you how anytime is a good time to buy... as long as THEY are your agent.

Timing the cycle is critical in RE investing. The only home I own, I live in. My retirement is secure through other investing... I would never trust my money to grow in something dependant on what other people did or thought.

Isn't the stock market based on the same principle?

[jamesandveybe]

Originally Posted by renter07

Isn't the stock market based on the same principle?

If you buy and hold stocks with no idea of when to sell them or why, then yes. However, that is poor money management, IMHO. My brand of investing not only doubles returns once a week on average after taxes, but it requires more than occasional stock price checks. There are investors and there are traders. I would NEVER hold onto something that could change value when I wasn't looking straight at it. Gotta sleep sometime, and I prefer sleeping without one red cent at risk.

[8 SNAKE]

Originally Posted by jamesandveybe

My brand of investing not only doubles returns once a week on average after taxes, but it requires more than occasional stock price checks.

I'm going to have to call BS on this one. If you have an investment strategy that consistently performs as you claim, you'd be on the front page of every financial publication in the world and Buffett would be calling you for advice.

[forest beekeeper]

I have invested in MFRs [Multi-Family-Residences] since 1985.

For us they have well.

We have bought them; as owner-occupied, using no-money down mortgages.

For us it has worked out well.

We accumulated apartment buildings in California, Connecticut, Washington, and Scotland. Before I retired. My career had us moving around a bit.

I have since sold all but one MFR. I used the cash to purchase our retirement property.

Though now after a few years of retirement we are considering buying yet another MFR in this area. We are just amazed at hopw cheap they are right now.

It has been our experience that MFRs will gain equity at about 15% per year. Now would be a fantastic time to buy one

And consider they provide excellent tax sheltering. Due largely to our investments [and my professional training] we have not paid income taxes since 1985. No tax obligation at all. usually our sheltering is good enough to keep our AGI near zero or a negative number.

[okaydorothy]

I like real estate too. But keep the opinion that it is a LONG TERM investment. Dont depend on it for a get rich quick scheme. Mine are single family but I would love to buy multi families.

Maybe thats what we should do ; sell everything in NY and move to our vacation home in PA and buy multi familiy units.

maybe

d