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Message: [QUOTE="Hoophound, post: 5322379, member: 271"] Buying good real estate at the right time is 100% a solid path to wealth. Buying any old real estate when everyone else is buying it—-is a recipe for disaster. We are fairly wealthy. 70% of what we have came from real estate deals. It works well for us for the most part. We’ve bought wrong and lost a few times, but all of our other transactions were profitable. We’ve bought and sold property many times. One huge and overlooked factor for many people is this: Most people are bad with money. If they have it they spend it. They might spend it in different ways, but they spend it. In the big picture, blowing 100k on a car or clothing isn’t much different than spending it at the casino. Money put into property is somewhat protected. There is a principle reduction and a cash value in the end. Many people buy a “wasteful” second home. It might have cost them 500k over the years and now it’s paid for and worth 500k. They’ve got a half million they probably wouldn’t have had and they’ve made a lot of great memories. Now, if they’d stayed home, never went on vacation and never taught their kids to sail or ski or whatever and invested the money in an index fund, they might have $2,000,000. Unfortunately, most people wouldn’t do that. They’d spend the surplus on cars, clothes, concerts, cruises and any of a million other things. So, real estate is a great hedge against your own impulsiveness and self indulgence. I come across people everyday that have a nest egg because they bought a home. They’ve don’t have anything else. If you are a life long renter, you better be investing a lot elsewhere. [/QUOTE]

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