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Re: real estate vs. stocks
Old 02-05-2005, 11:14 AM   #21
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Re: real estate vs. stocks

I was able to pick up several single family homes on the repo market during the S&L collapse back in the 80's. *It was a job, and even though I sold them all at a nice profit, if one added the hours and effort it was not all that great a money maker. *Many folks will tell you how much they made on a real estate deal, but they are just telling you about the cash out, and seldom about the real investment energy it takes to make real estate work. *The capital appreciation should be considered in the context of the management and maintenance costs over the ownership period.

With the exception of my home I own CD's, bonds and funds. *I have a large position in the Vanguard REIT index and the Third Avenue Real Estate funds, and they pull a decent return without any real effort on my part. *And thats the way I prefer my real estate investing! 8)
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Re: real estate vs. stocks
Old 02-05-2005, 11:24 AM   #22
 
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Re: real estate vs. stocks

Back when I was still hunting, I owned quite a bit of raw land. I had to hold it a long time, but my family was using it and I did real well when I finally sold. There was
a long holding period, but no management worries in the meantime. Actually, our condo is similar
in the sense that we have hired management and we get to use it personally. Even so, we have positive cash flow, tax deductions, and appreciation is a slam-dunk.

JG
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Re: real estate vs. stocks
Old 02-06-2005, 05:02 AM   #23
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Re: real estate vs. stocks

Quote:
Many folks will tell you how much they made on a real estate deal, but they are just telling you about the cash out, and seldom about the real investment energy it takes to make real estate work. *The capital appreciation should be considered in the context of the management and maintenance costs over the ownership period.
I think this is the real appeal of the absolute NNN properties. You have to spend about 5 minutes a month (walk to mail box to get check ) on managing these properties and you get a nice return. You also get to shelter part of the return from taxes with the depreciation deduction.

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Re: real estate vs. stocks
Old 02-06-2005, 05:10 AM   #24
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Re: real estate vs. stocks

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I have a large position in the Vanguard REIT index and the Third Avenue Real Estate funds, and they pull a decent return without any real effort on my part. *And thats the way I prefer my real estate investing!
Basically, you are paying people to manage your property, and still making a decent return on your investment. You should be able to accomplish the same thing without the REIT, if you were so inclined. You would not have the costs of managing the fund itself, but you would probably not have the diversification either.
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Re: real estate vs. stocks
Old 02-06-2005, 05:29 AM   #25
 
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Re: real estate vs. stocks

It just occurred to me that our Texas condo is the
first piece
of real estate I ever owned with professional management. I tried to buy some pretty large apt.
complexes a few times with the idea I could hire management, but never got it done. Anyway, like with
all services, there is a wide variation in what you get for your money. We are fortunate that the realtor's office
is about a mile from the condo, and she knows the
property intimately. Also, her fee is reasonable and
she is quite honest and reliable. Got pretty lucky on my first time handling a rental in this manner.

JG
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Re: real estate vs. stocks
Old 02-06-2005, 06:15 AM   #26
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Re: real estate vs. stocks

I want nothing to do with real estate, unless it's mine alone. No lodgers, renters, no insurance problems, no maintenance, etc. Property for me and DW out in the country, fine; preferably in the lowest tax region I can find.

I have two REITs. One is the Vanguard index. Another is called CPA 15. They return enough income to make me happy. I had a broker who got me into CPA fund years ago and it turns out above inflation returns every month.
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Re: real estate vs. stocks
Old 02-06-2005, 06:40 AM   #27
 
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Re: real estate vs. stocks

Ah real estate. How do I love thee? Let me count the ways.

I could write a great book just based on my real estate
stories and nothing else. Doubtful it will happen. Lazy!

JG
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