Quote:
Originally Posted by Solid LT1
Me....I'm into paid off real estate...income producing...and...heavy metals....AU, AG, Lead/Brass the sure stuff  |
I wouldn't place metals in the "sure stuff" category... Gold is down 25% from it's recent highs. And Silver is down 36% in the same period ---- so I'm not so sure where you think this is a sure bet.
Real estate is a great investment -- as long as it's INCOME PRODUCING. Paid off real estate is a feel good statement... as leverage in real estate will produce better returns over time. I'm not going into the math -- but because other people read these posts... and this is a learning thread... The basics are if you put 100K down payment on a rental house - and you sell it for 50K more than you paid 3 years later. The RETURN is calculated on your actual investment (the 100K). You'd have made considerably less return had you paid all cash. So the "paid off" statement is cocky and feels good.... but not very accurate in many ways without some kind of explanation.
Like ALL investments --- it depends on a persons individual circumstances and what their situation and needs are at any given time. My feeling is that all investments need to only fit those of the individual. Investing is emotional -- and only the person owning the investment needs to feel good about it. Some folks can't stomach owning stocks - and love bonds.... or real estate... or life insurance.... or annuities. Others would consider some of these as TERRIBLE investments.