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Is it wise to invest $2000US or more into a long term property investment portfolio?
3 Answers
- dvskvLv 71 decade agoFavorite Answer
$2000 US is much too little for any REAL PROPERTY near a major USA urban area. Also keep in mind that REAL ESTATE INVESTMENT is a long-term investment and might take 10 to 20 years to see any substantial appreciation, and $2K doubled would only amount to $4000 which a $2K capital gain isn't much. Also keep in mind that as a real property owner, each year you will be required to PAY PROPERTY TAXES to the local jurisdiction government that will be based on the ASSESSED VALUE
Like someone else suggested, you would be much better off putting $2000US in a publicly traded mutual fund that invests in real estate bec you can jump out at anytime and pay the transaction fees for redemption etc as the other important thing to beware of when you own or sell REAL PROPERTY is that it costs money or they deduct the real estate agent's commission from your gain and profits plus there are settlement closing costs).
Hope the Above Info Helps!
- SGEliteLv 71 decade ago
Property investment is very violatile. I would suggest you consider trust funds instead.