Quote:
Originally Posted by OMG!WTF!
I'm not sure there is much if anything a really great property buyer can do to change the over all market condition to his or her favor. A savvy stock picker can beat the market. But winding up with equity in property has very little to do with your skill as a buyer of houses. It is almost entirely the luck of your draw that determines your net asset at the end. I think that's something to consider in this equation.
|
I disagree with that completely. There are 3 factors that control the return you make on an investment: how much you buy for, how much you sell for, and how much cash you take out/put in along the way.
In real estate you can individually control your buy price. If it's not a great deal don't buy it. You can probably only sell at the market price, but you can often change the market value with judicious changes to your property. Hard for me to call up the CEO of a big company and suggest some changes... If you do a good job along the way you can get better than average rents as well.
I've beaten the Calagry real estate market dramatically and consistently. Buy well located property that provides positive cash flow at below market prices. Do sensible renovations inexpensively. It isn't complicated, but it does take hard work and patience. Probably a similar level of difficulty to beating the stock market, imo. It definitely isn't just luck.