The Iceman's 4 step plan to create wealth (I need help with 1 and opinions)

[quantumleap]

Guys, with a lot of the areas of the country suffering real estate melt-downs, one market I've researched is the Charlotte, NC area. A couple years ago Money Magazine and CNN forecasted a 5% growth in prices for this market for last year and actual growth was around 8%. They are predicting 8% for this year so 10% is possible. I'm looking into buying lake-front land rather than rental property.

The things that make Charlotte a good area is that all major factors for real estate appreciation are present such as an increasing population, stable core businesses (banking) and a high % of occupancy (95%).

If I buy a $250,000 plot, in 3 years it should appreciate $75,000 (at 10% per year). That would allow me to buy another property using the $75,000 as collateral.

 

[Phaedrus]

Northern Ice

We're kind of going in circles here -- bottom line is simply that we both agree that real estate can be profitable, but we disagree on the issue of it being overrated. Trying to get rich off of tax loopholes, over the long term, is not the best idea a person can have -- that includes 1031, the deferrals for 401(k) and any other scheme the government has cooked up to make you feel like you're paying less in taxes than you really are.

My point, again and again, has not been that real estate is a bad idea -- merely that it tends to bring with it more work, risk and opportunity cost than proponents of real estate seem willing to talk about. Since we're sitting here talking about them it seems we're in agreement on the facts and simply interpret them differently. I think it's possible that we'll both come out alright following our respective strategies.


Phaedrus

 

[redge]

Ph. Well put. I registered here after lurking a long time. I wanted to say the same thing to you and NS, in my opinion you are BOTH correct.

Related to another thread as well, I own houses in a college town with 32 renters. Up until about 2yrs. ago prices kept going up near the college, when suddenly their was a huge overbuilding boom specific to the students. I used to not be able to keep up with the calls for appts. to show the properties. I've gotten one call in the last 2 mos. so it's a different market now and I just have to work harder.

My point is, there is no surefire road to success. There is one for failure, though - not trying any of the ideas put forth here or any others that put one outside of their comfort zone.

SSI: You would have no problem being in business for yourself with your work ethic and capability for research.

Anyone else here in business for themselves will tell you that it can be a hell of a lot of work and frustration. But the rewards and confidence you gain is fantastic. I feel if the business(es) I'm in turn to crap I will be able to do something else. Lots of automotive workers don't have that same feeling.

Enough rambling. Good thread.

 

[wilheim]

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