What kind of return do people really expect from investing into real eastate?
604978
I think with any rental situation you are pretty much looking to break even.  Considering mortgage, taxes, maintenance, etc.;  I would hope my rental income would cover all these expenses.\n\nI would expect some tax breaks and hopefully, home appreciation of 5-10% a year.\n\nJust my opinion.
973396
Coach has maxed itself out @ almost $40.00 per share and will never offer you much of a return unless it plummets back down to it's foundation price.  \n\nIt is too high and was only a productive purchase to those smart enough to get in on the ground floor.  \n\nIt is rated at an 8,  a great stock to own but as far as it going up enough to make you money...  I don't see it happening.  It wont ever become an Abercrombie or an american eagle.  I don't think so anyway...  always go with your gut!  I would hate to be the deciding factor and you not do something you should have done. \n\nCheck out Psun...  It just split and is still cheap!
987654
The expected returns will vary, depending on the quality of the debt. For example, if you are holding a mortgage on a property, and you need cash, I may buy the mortgage from you. If the payment history on the account is good, I will be willing to pay more for the debt.  I will want to buy it at a discount, so that I can make some money, but may pay 90-95% (I may even pay 100%) of  the face value. \n\nIf you are holding an unsecured debt, that has gone into default, I will pay a whole lot less for it. Depending on the debt and the previous history, I would only be willing to pay a few cents on the dollar, and hope that I could collect some of it to make a profit.
1156053
Like any real estate investment, the answer is found in the 3 most important aspects of buying real estate:  location, location, location.  Is this dockominium in a high demand area?  Price is related to supply and demand.  Are there many other similar opportunities in the same area?  Just as important as whether it will increase in value is the consideration of whether it can produce any income to offset the costs of holding the investment.  Based on your answers you should be able to determine whether this is a good investment for you.
486120
I love to see questions like this in a forum like this. Few people know about these types of investments, They are offered only to people who meet certain financial criteria.\n\nBefore I retired, my firm specialized in these investments. What I learned about wealth was that you didn't need to make millions overnight. Creating wealth is about consistancy and longevity. The right kind of equipment leasing LP is a good investment for the right kind of investor.\n\nThe ones that my firm used to utilize offered a return of over 10% per year. This is a very respectable number. This was the income return, not the total return. Growth wasn't a major goal of the investment. Sometimes you got growth, sometimes you didn't. I sold them as an income opportunity with a  chance for capital growth and nobody ended up dissapointed.\n\nOur firm made in mandatory that you be considered an "Accredited investor" to quailfy to buy them. I don't know where you live but my advice to you on this subject is "Buyer beware". Purchasing this invvestment from a small regional brokerage firm or an LLP house can give you bad results like the Limited partnerships of the 1980's.\n\nSeek out large compaines like Merril Lynch or Raymond James. Raymond James has an entire section dedicated to what they call Alternative investments.\n\nI can give you some contact names if you wish.\n\nGood luck!
412377
Luaren, \n\nWith out knowing what part of NYC your talking about, and where you live. I would say that most if not all locations are over priced. If you do a cost analysis of the potential rental income to cash flow, you might be floating in red ink right off the start. It would most likely be looking like you would have to place a 10% down on a property valued at 230K (that's a very conservative number), and if your only clearing 500 dollars a month after paying for your mortgage and other maintenance fees (and that is a very liberal number) your cash on cash return is extremely low. At that rate you would have to keep the property for at least 46 months to recover from your initial investment and that doesn't include the cost of the closing. In most cases, you wouldn't even be able to cover the cost of the mortgage payment since your interest rate would be higher because of the fact that it's an investment property. You would have to do your own due diligence in researching not the property value market but the rental market to see where the trend is moving towards.\n\nHope this helps...contact me directly if you have any other questions.
403886
Time to think of other areas to consider...If you can afford it! It is a buyers market right now in the south east and soon the bubble will burst. So now is the best time to buy!
727067
High risk low reward.\n\nYou will have to draw up some hefty condominium documents (two or four owners can't be permitted to vote on much too many tie votes) to handle all of the day to day operations of the common elements owned by the association.\n\nYou would find better investments with larger complexes that will be easier to convert.
43542
Of course, you need to understand how the numbers work and when it is better to invest long-term or short-term. BUT GENERALLY, purchasing a four-plex, living in one and renting the others is a good strategy. The really great things is that lenders usually consider this a “single family” loan rate as opposed to a commercial loan. Also, if the units have a rental history, you can count the rental income as part of your income to help you qualify for a larger loan. You can get an “owner occupied” rate on the loan, stay in the complex for year or two, then move to another one and just keep collecting four-plexes. If you keep this strategy up for many years, assuming your area is appreciating at even an average rate, you will be able to retire on passive income within15 years, perhaps sooner!\n\nThe bank counting the income from the other units toward your annual income, is reason enough to purchase existing units at this point in your investing program\n\nI wish you the best in all that you do.
77136
Consider these:\n- Is it worth investing so and so $ to get $ ?( how much return?)\n- Distance from you, just in case you have to go and miaintain or repair something/ arangements for it\n- Will your income be sufficient enough to offset the maintenance & labor you'll put on it?
982935
The buy vs rent question is very popular. And truthfully only you will know the answer. Although here is my personal opinion. Rumors of the bubble popping have been circling for years. Not only that as long as million dollar brownstone's and other exceptional purchases will continue to happen you are correct the new york market is quite immune. Here is something o think about 5 years from now if you purchased you could have maid a nice sum of money for selling the property, or 5 years from now you will have paid some one else a nice sum of money with nothing to show. If you feel you can afford the housing expense then go for it. Homes are investments, apartments are liabilities.\nIf you like there is a rent vs own calculator on the following website so that you can make a more educated decision if you like.\nAlso feel free to log onto http://www.justgetaloan.net for a fast free pre-qualification with loan programs on low rates, great terms and service. Also fee free to contact me at 866 530 7300 ext 7305 or by email at jfreeman@justgetaloan.net
26566
certainly! a good 1..\n\nits an ever expanding company... so.. returns may be slow initially.. but the prices r bound to go up!!
563064
real estate goes in a 10 yr cycle, so I believe we should expect to see a steady climb in interest rates, especially with the weak dollar. \n\nRegards...
611452
Excellent Question!  Most people are faced with this.\n\nLet me explain how I think and you should then be able to decide for your self.\n\nWhen you take a mortgage, the interest paid is tax deductible.  Hence even if you have a 6% Mortgage, your effective interest paid is just 3.7%.  Where else will you get money at such ridiculously low rates?\n\nI have been with a financial planner and he is pitching me post tax 9.2% which is pre-tax 14%.\n\nSo if you don't repay your mortgage and invest it, you will stand to gain atleast 5%.  This implies atleast $5000 more each year for every 100K in Mortgage.\n\nI am myself a realtor, so I understand a bit more in real estate.  The way it works in Real estate is very different.  Say you invest in a financial instrument, you get a return of 9.2% after tax on the 100K.  But if you invest the same 100K in Real Estate, you would be buying a property worth atleast 500K, or 1 Million.  If this property appreciates at just 4%, much higher in places like California / Florida etc.  If you consider that you are buying a 500K property with 20% down, the return on your investment will be 4% X 5 (Leveraging) = 20% per year.  You can manage this investment pretty well using 1031 exchange etc. to be able to defer payment of taxes till retirement.\n\nIf you buy a property with a 10% down at 1 Million, your return will be over a 40%.\n\nYou need to seek a right reward to risk ratio.  If you plan your investments well using a Estate Planner, Financial Planner and a Realtor, you will be able to reap good returns and save money from taxes.\n\nDisclosure:  I am a Realtor in San Jose, California working with Century 21.
1110783
There is no "standard", just what the market will bear.\n\nBut I just heard a figure you may find interesting.  There was a survey done recently by real estate people and the average monthly rent increase is expected to be 5.3%, about double what the average increase was last year.\n\nReason given is that interests rates are rising so home purchases are slowing.  More people are staying in apartments so demand is up.  Supply is also down as many apartments are being converted to condos.\n\nSounds like you did pretty well.
6044
To figure your return (ROI) (return on investment) Use the following:\nTotal rental income - expenses = annual cash flow\n\nannual cash flow / downpayment+ fix up costs = Rate of Return on investment.\n\nFor reasons to own investment property clik this link:\n\nhttp://www.garygeer.com/Why_You_Should_Invest/page_542147.html
13054
When you invest it's always best to use the maximum amout of leverage to obtain the maximum return. Investment debt (as long as your tenants are paying for it) is good debt. \n\nExample: You buy a $100,000 home with $50,000 down and the property goes up in value by 10% in one year. Your ROI (return on investment) is 20%\n\nYou buy the same $100,000 home with $10,000 down and the property goes up in value by 10% in one year. Your ROI is 100%