Lets say one has 250k to invest and is 25. What path would you take to make 25 Million by age 50? Invest in real estate, primarily buying and renting out condo's, apartment complexes and/or homes. Occasionally fixing and flipping when market conditions are right. Invest in stocks, bonds, currencies , and/or futures. Having the majority in long term holdings and having a smaller portion for trading activities when the market conditions are right? In order to achieve this one would need about 20% growth compounded annually Thoughts?
I was thinking if one is young and has money, the next couple years are prime for getting a real estate portfolio started .
Hard Assets out way the "PIKERS" dream of becoming worth Millions by pushing buttons in market that is no longer free. When the stock market was a "Free Market" and the only serious problem one may have is someone trying to corner the market with shear force of their money.....I would say the Chances of making Millions were good. Hard Assets, for now until the US GOV becomes so Tyrannical that they put a halt to owning land, oil wells, rental buildings, etc, ...is the way to go for the future. There will be a lot of Have-nots in the next decade as the depression drags on. In fact we are almost at the point of the Longest "GREAT RECESSION" of over 100 years. Oh, wait, ..i forgot, the Recession ended last year. My bad.
The real estate market is not coming back for years and years and years. Prices are still inflated and need to come down at least 40%-50% before a bottom is in place and with the fed trying to prop everything up and make it look like a turnaround this is only going to be worse for real estate moving forward. Mortgage rates are being pushed down artificially to help boost the real estate market and guess what, its not doing anything to create a turn around in housing, once rates start to move higher, 5% 5.5% and eventually 6%+ this will put housing in an even worse environment as people continue to step away from wanting to own. Real estate is still inflated and with taxes sky rocketing the cost of owning a home and just keeping up with it is still out of whack considering where this economy is. Maintaining a house with oil prices through the roof and the cost of living being inflated by Bubble ben bernankes easy money policies staying in house today is even harder than it was just a few years ago! Stay away from real estate for a while and be very patient as the next drop in prices is coming sooner than later!
Agreed. I've spoken with Clients who have bought VERY nice homes in FL that were once 600k for 125-150k. They're not buying these to flip tomorrow. They're buying these, and putting renters in them rather than let them sit empty. The renters are screened, and are in a "better class" if you will, than the average $500/month renter, and usually don't tear up properties. These guys are planning to rent as long as they have to until the real estate markets and credit markets get some legs under themselves. (Yes, I know, they may be waiting for a long while...) None the less, a smart move on their part imo.
$600k to $125k Talk about a nice drop in price, did people really think that when they paid $600k that in 5 years it was going to be worth over a Million, hahah. Well those buying now will not see $600,000. They might get $600,000 sometime by 2050, but not anytime soon! Those prices will never come back to that peak, if they do it will be at least 40-50 years. Anyone who thinks they got a deal, they really didn't, the price they paid $125k-$150k should have been the price back in 2006 and 2007. Those prices will remain that way for a decade or more so there is no rush to go out and buy anytime soon thinking prices are going to start moving higher.
Thats because of leverage ability. Someone who put 5x into the stock market and never had to worry about a margin call would have massively outperformed the same real estate dudes.