A.I.M. Users Bulletin Board

[Toofuzzy]

Hi Jack

I would not buy rental properties either (repairs, tenants, collecting rent)but there is one advantage, leverage. For that $100,000 gain only $5,000 may have actually been invested. If the property is depreciated then for many years you pay no income tax on the income generated. If the property is passed on at death the depreciation can start all over again at the stepped up basis.

I like REITS and when the yields go up in that sector again I will buy more.

House prices doubled in three to four years where I live but timing is everything. I expect prices to level off as interest rates rise maybe as long as the next ten years.

Toofuzzy