On Feb 20, 5:41*pm, Larry Dighera wrote:
On Wed, 20 Feb 2008 14:46:03 -0800 (PST), "Robert M. Gary"
wrote in
:

On Feb 20, 1:40*pm, Larry Dighera wrote:
On Wed, 20 Feb 2008 12:37:49 -0800 (PST), Dan wrote in
:

Currently, when thinking about what I'd like to do when I "retire" I
think I'd like to fly a lot. *However, it is expensive so it would be
better to get paid to do it rather than spend big money on a hobby.

If your motivation is revenue generation, consider real estate
investment. *If you start buying foreclosures, and put enough equity
in them so that the rental income makes the mortgage payment, you will
be able to leverage your equity investment's appreciation by something
like 80%. *

What about your equity? Doesn't it deserve a return too?

Huh? *That's the whole point. *

Let's use $100,000 as the home price. *If the real estate appreciates
at 10% annually, with a 20% down payment (the equity), you are able to
realize a gain of, not 10% of $20,000 ($2,000), but 10% of $100,000
($10,000) annually.

You could put
it in eTrade savings account and get 4% FDIC insured so why put it
into real-estate hoping to just get your payment out of it??

For the appreciation in property value. *The rent payment just covers
your costs (approximately) over the life of the investment. *

Real estate goes up and down, but over the long run, .... *With the
rate of population growth worldwide, I don't see how it can miss. *The
only true downside is the lack of liquidity, but that's not really an
issue for retirement income.

The long term average for real estate appreciation is 5%, after
accounting for inflation.

--Dan