I know a very limited amount about real estate, trying to learn more and will do much more research before comitting.
However, I'm wondering if someone can confirm my calculations are correct that 50k invested in real estate can in fact result in closer to 18% return in the first year as opposed to a simple 5% return investment in the stock market? I am wondering if there are things I am not considering in my below calculations?
Quick explanation: using 50k to purchase a $250k home, the end cash flow would be about $1,320 per year. The equity on the mortgage in the first year would be about $5k but grow in subsequent years, and real estate in my country has appreciated at about 1% per year (conservatively) - meaning a total return of $8,820 combined.
18% in real estate VS 5% (if even that) in stocks? Am I missing something?
However, I'm wondering if someone can confirm my calculations are correct that 50k invested in real estate can in fact result in closer to 18% return in the first year as opposed to a simple 5% return investment in the stock market? I am wondering if there are things I am not considering in my below calculations?
Quick explanation: using 50k to purchase a $250k home, the end cash flow would be about $1,320 per year. The equity on the mortgage in the first year would be about $5k but grow in subsequent years, and real estate in my country has appreciated at about 1% per year (conservatively) - meaning a total return of $8,820 combined.
18% in real estate VS 5% (if even that) in stocks? Am I missing something?
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