Quote:
Originally Posted by venomous viper
500 shares @ 85 bucks is $42,500. If you had bought $400,000 worth of real estate in many areas in Jan. 2004 (Bend, Ore, 106% in 5 years=21% per year) at the end of 2006, the value would've increased to $705,000+. That is a $305,000 gain, PLUS some tax savings each year of about 6K. Pretty close to same results overall, imo.
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Throw in negative cash flow on rent, maintenance/upkeep, and selling costs and that takes your profits down. You'd also be making a 1 in 1,000 decision to know exactly when and where to buy and when to sell. Nobody, including the most adept real estate investors can predict this. Of course, the Google example is the same kind of luck, but you make you case as though this happens all the time in real estate.
I bought a rental with hardly anything down, fought a negative cash flow for six years, hell with renters, finally got out of it for barely what I had into it because I was facing a balloon payment. I guess I wasn't meant to be rich.
