Friday, August 28, 2009

The Advantage of Investment Properties

Our stock has earned us only sixty percent of what our real estate earned. The stock could only earn six cents for every dollar, but our real estate made us ten. Now, you tell me which one is better. Our real estate has earned us far more. If our investments made eight percent, our real estate would have earned us an even bigger percentage over our stock. The stock would have earned only forty percent of what the real estate would have. Investing it yet a third time, assuming we earn again an eight percent interest rate, the stock will have only made us thirty five percent of the real estate’s earnings. You see, as the amounts get bigger, the gains from the real estate get bigger and bigger when compared with the stock’s earnings.

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