State of the Market

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On 880 Radio today in a business segment it was stated that the stock market is up 24% since October and that investors should expect things to be bumpy over the next several weeks etc.  The question they asked is where do you put your money in this environment.  They mentioned Warren Buffet as saying he would buy single family distressed homes at todays 4% interest rates and rent them out , gaining good appreciation over time.

 

I would say this is an excellent strategy as long as you do your due diligence and buy correctly, analyze rental income for the area and size of apartment or house, and factor in repairs, periods of vacancy and other costs that could impact cashflow.

 

When you own rental property you at least have some control over your investment  as opposed to having your money subjected to the volatility of the market and politics beyond your control.