You could put it in a money market savings account with an average return of 0.30% APY.  After one year you will have earned $300.

You could put it in a CD with an average return of 0.50% APY.  After one year you will have earned $500.

For an IRA, you are still looking at 0.50% APY.  After one year you will have earned $500, but withdraw it early and you will be taxed heavily.

You could buy gold as the commercials will tell you, but gold has doubled in price over the last 2 years and this isn’t 2009.

You could give it to your broker to invest, but the stock market is turbulent and if you are getting a 4-5% return, you are doing better than 95% of investors.  After a great year in the stock market, you will have earned $4,000 – $5,000.

But if you take your $100K and buy a bank owned property.  Let’s say you find a 3 bedroom house in a decent neighborhood and negotiate with the bank for $90K.  You spend another $10K on closing costs and fixing the place up.  You can then rent it for $1200 per month.  In this example you don’t have a mortgage, since you had $100K to start with, so you only pay taxes and homeowner’s insurance.  Say your taxes for the $90K home are $2000 per year and insurance is $1000 per year.  Your monthly expenses are $250 per month.  Your gross income is $1200.  Your net income is $950.  After one year you will have earned $11,400 for an 11% return on your $100K.  Where else are you going to get that kind of return?

Real Estate also has the advantage of tax breaks through paying a mortgage or deducting expenses on the property.  Appreciation is a thing of the past, but if you buy under market conditions and have the cashflow to hold it for 10 or more years, you will make money when you sell it. 

Even in the Great Recession, Real Estate still wins.

For expert property management in Treasure Island, St Pete Beach and Lakewood Ranch, Florida, contact Sun Rock Property Management

Related posts:

1. Are Your Real Estate Dreams Crushed?
2. The Other Number
3. Foreclosure Buying Nightmare Over?

The Bradenton/Manatee County, Florida area has always been a desirable place to live. Throughout Manatee County you will find a wide variety of properties: bayside villages, country clubs, rural settings, urban communities and retirement areas. 

You can find stunning oceanfront homes and luxurious condominiums of Anna Maria Island and Holmes Beach. In the East County lies the sprawling master-planned communities Lakewood Ranch and Heritage Harbour. With these diverse options, you can find a property with everything you desire in a home. 

Located between Tampa and Sarasota, Manatee County offers many attractions and historical districts.  Bordering the Gulf of Mexico and the Manatee River, the county is well-suited for the avid golfer, boater or beach enthusiast.

Manatee County saw considerable appreciation during the housing boom and rapid depreciation during the bust.  Manatee County is beginning to rebound from the housing market crash, showing signs of life.  New businesses and retail stores are opening up and some builders are increasing prices. 

The rental market in Manatee County is strong, with most properties finding tenants within 30 days of listing.  Proper research must be done to determine rental rates for individual properties. Setting the right pricing point will ensure you make the maximum amount of cashflow, but also help you avoid vacancies. 

For professional property management in Bradenton and Manatee County, contact Sun Rock Property Management

Related posts:

1. As Home Prices Decline, it is a Great Time to Invest in a Rental Property
2. Lakewood Ranch – Property Management Perspective
3. Heritage Harbour – Property Management Perspective