There's a better place to put your money to maximize returns
, a self-made millionaire who retired at 37, says buying a home 11 years earlier was"probably the worst financial decision" he ever made. It took Reining three years to save up a $40,000 down payment to buy a $200,000 house near Madison, Wisconsin.
."That's called the opportunity cost — when you choose to use your money one way, rather than another."in a post for Business Insider"Okay, so from 1890 to 2012 the inflation-adjusted return on a house was 0.17%. That means if you bought a house for $5,000 in 1890 it'd be worth $6,150 in 2012. And over the same time period the inflation-adjusted return of the stock market was 6.27%. That means if you invested the $5,000 you'd have $8 million.
That said, some of the most successful investors have portfolios which include real estate — but there's an important distinction. Buying a home as a rental property gives you, the investor,For instance, say you purchase a duplex with a $1,500 mortgage. If you have two renters who you charge $1,250 each, that's a total of $2,500 in rental income a month. That gives you a monthly excess of $1,000 to cover insurance, taxes, and maintenance costs, and pocket what's left over.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
The Latest: 8 dead, 37 rescued in Nigeria school collapseLAGOS, Nigeria (AP) — The Latest on Nigeria building collapse (all times local): 8:45 p.m. A Nigerian emergency official says eight people are dead in a collapsed school building and...
Weiterlesen »
At least 8 killed, 37 rescued alive in Nigeria school building collapse: ReportsChild rescued and carried away through a crowd of people as emergency teams rush to save trapped students at scene of school building collapse in Lagos, Nigeria. At least 8 people were killed and 37 were rescued alive, according to emergency officials.
Weiterlesen »
37 Of The Most Heartbreakingly Beautiful Lines In Literature'Everything was beautiful and nothing hurt.'
Weiterlesen »
37 Spring Books To Get Excited AboutA mapmaker who can shift geography, an unlikely horse race champion, a testament to the long history of human failure — and much, much more.
Weiterlesen »
Suspect has no direct ties to victims of Dutch tram attack, police saySuspect in Utrecht shooting had no direct relationship with the victims, police say.
Weiterlesen »
More Catholics Considering Abandoning the ChurchMore than a third of U.S. Catholics say the sexual abuse crisis rocking the Catholic Church has made them consider leaving, significantly more than when the last major scandal erupted, according to a Gallup study.
Weiterlesen »
At least eight people killed in Lagos building collapseAnother 37 victims have been rescued, Nigerian officials say. Children had been attending an 'illegal school' inside when the dilapidated structure collapsed.
Weiterlesen »
Police identify Utrecht shooting suspectMultiple people injured and one person feared dead after shots fired inside a tram in Utrecht, Netherlands. Follow here for the latest.
Weiterlesen »