Tuesday, November 20, 2007
Average Real Estate Investment Return
Everybody knows that real estate investments typically increase in value at a rate of about 7%. But what you need to understand is that is an average. It doesn't increase 7% every year. Lots of times it won't increase at all for 3 years and then it'll go up 28% in one year. So, it went up 28% over 4 years for an average of 7%. You need to buy when it's in one of those slumps where its not going up much and be ready to sell just after one of those surges. Now seems to be one of those slumps where prices are just staying steady. Buy now! And then make sure you position yourself where you can sell when you want to, just after some price surge several years from now.
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