Flipping houses is not that different then building houses. If you buy a house that is not inhabitable make, make it habitable and sell it for a profit, that is value added to the economy and is a good career path.
There are some people that take advantage of uninformed sellers buy a house cheap and put some paint on it and mark it up significantly, but there are bad people in every industry.
This paragraph makes it sound like a hit piece:
>>Between 2006, the peak of the previous housing bubble, and 2019, average home prices have increased just 13%, according to the S&P/Case-Shiller Home Price Index. In that same time period, the S&P 500 rose 125%. In other words, stocks did 10 times better than real estate.
-Seletivly picks a period of the biggest housing crash in history and there is still increase.
-that would be the amount it increased with no value add.
-if you buy, hold, and rent you will make significantly more. If you are talking a 13 year period you are probably doing this. You buy with mortgage, have tenants pay mortgage, mortgage gets paid off plus profit. This stat leaves of monthly profit plus the fact you only had to 20% down, so you cash on cash return of just appreciation is closer to 75%. Also about 30% of your mortgage would get paid of if you had a 30 year mortgage, and almost all of a 15 year mortgage.
Real estate can grow with cpi and still be a good investment. You just can't be leech and have to add value to the economy. I.e Let some live there and build improvements. It is more hands on,but definitely better returns then the stock market.
There are some people that take advantage of uninformed sellers buy a house cheap and put some paint on it and mark it up significantly, but there are bad people in every industry.
This paragraph makes it sound like a hit piece: >>Between 2006, the peak of the previous housing bubble, and 2019, average home prices have increased just 13%, according to the S&P/Case-Shiller Home Price Index. In that same time period, the S&P 500 rose 125%. In other words, stocks did 10 times better than real estate.
-Seletivly picks a period of the biggest housing crash in history and there is still increase.
-that would be the amount it increased with no value add.
-if you buy, hold, and rent you will make significantly more. If you are talking a 13 year period you are probably doing this. You buy with mortgage, have tenants pay mortgage, mortgage gets paid off plus profit. This stat leaves of monthly profit plus the fact you only had to 20% down, so you cash on cash return of just appreciation is closer to 75%. Also about 30% of your mortgage would get paid of if you had a 30 year mortgage, and almost all of a 15 year mortgage.
Real estate can grow with cpi and still be a good investment. You just can't be leech and have to add value to the economy. I.e Let some live there and build improvements. It is more hands on,but definitely better returns then the stock market.