Survey Reveals the Rich are Making Big Money in Real Estate
by Mike Colpitts
Published on this site: January 9th, 2006 - See
more articles from this month
The over-whelming majority of America's wealthiest families
have made their fortunes in real estate, according to a new
study.
The survey, conducted over a two-month period before the
end of 2005, indicates those surveyed made their fortunes
investing in real estate. The study was conducted by Real
Estate Add. com, which is an information driven website.
Many start out investing in single family homes, par-lay
their profits into other real estate and discover wealth in
investment real estate. The stock market has produced many
wealthy individuals, but not like real estate. Only eleven
percent of the 500 respondents surveyed said they made their
fortunes in stocks or other investments.
An over-whelming majority of 83% of the Nation's wealthiest
families surveyed made their wealth investing in real estate.
Only 11% made their first million dollars in the stock market
or other investments. The full report may be read on the Real
Estate Add.com website.
Fifty-one percent bought their first few investment properties
and waited long enough for the real estate market to appreciate
to make substantial profits. Nearly all got financing to start.
Some 92% said long term planning was the key to their success.
Only 10% indicated they made great profits by buying fixer-uppers
or other properties they made repairs to and sold quickly.
Flipping properties, which is buying real estate and making
either repairs to the property or taking advantage of a rapidly
appreciating market without making any changes and selling
them for a great profit, is the exception to the rule rather
than the norm, according to the study.
Most real estate investors who are in the investment real
estate market for more than 5 years, which is considered a
long term investor in real estate, make their profits over
more than double the initial amount they invested. That's
understandable when there are real estate markets like Portland,
Oregon, which has tripled in price in the last 10 years.
Other places like Destin, Florida, which is a resort real
estate market and as such is leading the real estate industry
growth in the second home market, has seen property values
double in the past five years. The Silicon Valley, home of
the high tech industry in San Jose, California has seen prices
increase at even higher levels.
There are many places like that in the Nation's real estate
markets from coast to coast. However, there are still some
great buyers markets where there are shortages of investment
real estate for tenants to rent.
Real Estate economists compare the trend to other forms of
investing, but caution investors to have a long term plan
to cover expenses in case there are unexpected periods of
vacancy. Some investors in today's real estate market have
purchased properties without sufficient funds to cover expenses
in case tenants suddenly move out.
Ulli Niemann is an investment advisor and has
been writing about objective, methodical approaches to investing
for over 10 years. He eluded the bear market of 2000 and has
helped countless people make better investment decisions.
To find out more about his approach and his free Newsletter,
please visit: http://www.successful-investment.com
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