Myth:I missed the best investment opportunities and the party is over.
Realty:Your gut feeling is right, but you can still recreate almost the same returns as the investors who bought in the downturn. It is not too late!
On the graph below the purple line represents someone who purchased two homes in 2011 ($25,000 down in total). They did pretty well for themselves and the properties are now worth $855,000 with an annual income of $41,600. We all wish we did that! But it is not too late.
If you really want to start investing in real estate, you can recreate a similar effect to the downturn by buying one place now, waiting 4 years, refinance, and buy a second property. That scenario is represented by the dotted blue line. In the end, you would have a similar investment to the guy who bought in 2011. Your total asset would be worth $718,000 and your annual income would be $39,600.
Even if you just buy one house (green line) you will end up in a better position than if you invested your money in the stock market.
Just some food for thought!
Graph provided by First Alliance Title and Your Castle Real Estate.
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