Real Estate Is a Solid Long-Term Investment in Visual Studio .NET

Generation Denso QR Bar Code in Visual Studio .NET Real Estate Is a Solid Long-Term Investment

During the 1990s, many people got swept up in the euphoria of a booming US stock market Year after year, the market cranked out easy double-digit

returns for investors We sometimes hear stories of people who made small fortunes because they happened to buy into the right stock at the right time Meanwhile, in many parts of the country, real estate prices rose little by comparison So it seemed to some people, including media pundits, that real estate was yesterday s good investment Home values in all locations have always gone through up-and-down cycles However, the long-term trend is up, and the rises usually are far greater than the subsequent declines, such as those that occurred in the late 2000s (Stocks, as you may know, go through similar and often more violent cycles witness the major stock market decline in the early and late 2000s) So if you have a long-term (ideally, a decade or more) investing-time horizon, you should do just fine if you invest in real estate The average annual returns are comparable with those enjoyed by long-term stock market investors The best time to buy a house is always a decade ago A decade from now, today s prices may look dirt-cheap

If you re an impatient, busy person, investing in real estate probably isn t an ideal investment For one thing, locating, negotiating, and closing on property can take a big chunk of your time if you want to buy good property at a good price Then there s the chore (and the time sinkhole) of managing the property you re responsible for everything from finding tenants to keeping the building clean and in good working order Your stock and mutual fund investments don t call you in the middle of the night to fix a plumbing problem, but your tenants may! Even if you have the time to invest in real estate, you may also consider some other important aspects of your personal financial situation As we discuss in 2, taking advantage of tax-deductible retirement accounts is vital to your long-term financial health and ability to retire Buying investment real estate can prevent you from saving adequately in retirement accounts Saving for your down payment can hamper your ability to fund these retirement accounts And most of the properties that you buy will require additional outof-pocket money in the early years

If you want to place some money in real estate but don t like the thought of being a landlord, consider real estate investment trusts (REITs) REITs are

managed by a company that pools your money with that of other investors to buy a variety of investment real estate properties that these trusts manage REITs trade on the major stock exchanges, and some mutual funds also invest in REITs Among the better REIT mutual funds to consider are CGM Realty: 800-345-4048; wwwcgmfundscom Cohen & Steers Realty Shares: 800-437-9912; wwwcohenandsteerscom Fidelity Real Estate Investment Portfolio: 800-544-8888; wwwfidelity com T Rowe Price Real Estate Fund: 800-638-5660; wwwtrowepricecom Vanguard REIT Index Fund: 800-662-7447; wwwvanguardcom

You should avoid real estate limited partnerships that are sold through securities brokerage firms Securities brokers, often operating under the misleading titles of financial consultant or financial advisor, love to sell limited partnerships because of the hefty commissions that limited partnerships pay to the broker The broker s take can range as high as 10 percent or more Guess where this money comes from If you said, Out of my investment dollars, go to the head of the class! In addition to the fatal flaw that only 90 cents on the dollar you invest actually go to work for you in the investment, broker-sold limited partnerships typically carry hefty annual operating fees ranging from 2 to 3 percent So when you add it all up (or, we should say, after all these commissions and fees are subtracted from your hard-earned dollars), limited partnerships are destined to be poor investments for you