Attaining Wealth

[muscle_geek]

Just curious what ideas people have about the best way to attain wealth in this day and age. I like most people have a job that pays a decent wage and I have the house, two cars, etc... Very middle class existence. Not much money in my pocket after I'm done paying bills. What are ways that a middle class person can make the next step. Real Estate? Small business ownership? Any ideas?

 

[vinylgroover]

If there was a one simple answer. We'd all be rich.

Real estate is good, but prices are off the roof, so you can't buy something cheap, and sell high. Cuz you can't get a house cheap.

Best WAY to make money in real estate is to BUILD a house and then SELL IT. Get a bank loan and buy land and get a builder to build you a kick ass huge mansion. You can probably geta $1.2 million house built for $350,000. See the huge profit potential?

-= nav =-

Nav, you are being extremely simplistic.

Muscle Geek, Do you own your house outright ie, have you paid off the mortgage. If yes, then approach your bank for an investment loan and borrow against the equity in your own home to buy an investment property. The rent you collect should be enough to pay off the mortgage on your investment property......you can also put some of your wage into it. Because it is an investment property you will also be able to get some tax breaks (see your accountant). I am not familiar with US tax laws, but i would be surprised if you could not get a tax break through owning investment property.

If you select the property carefully, you will do well over the longer term and you can steadily accumulate wealth this way, primarily by using the banks money to create wealth instead of your own.

Things to look for in an investment property include

- Is it close to shops.
- Is it close to schools, universities, hospitals etc
- Proximaty to public transport
- Does the property have any further development potential, ie can you refurbish to add value down the track, does it have excess land which can be subdvided and developed etc.
- Do your homework on what similar properties have sold for in the area to ensure that you are not paying too much. If you pay $10,000 or $20,000 too much at the start, you have already lost at least 2-3 years of capital growth.

Unless you are experienced, never take a short term view on real estate. Real estate is a long term investment and you should take a long term horizon. Speculators can make good money out of real estate, but they are usually very experienced at picking holes in the market and capitalising on it. Unless you have that experience, you would be better off buying an investment property and holding it for at least 5-7 years minimum.

If you aready own your house outright there are a number of avenues for you to explore in order to accumulate wealth.

 

[the nature boy]

raise alpaca's. that's BIG TIME CASHISH.

 

[MattTheSkywalker]

Opportunity knocks as often as you recognize it.

Take advice from this board at your peril.

 

[nice6pac]

You'll need alot of cowshit

 

[The Ranger]

Re-Invent the "Pet Rock".....Remember that stupid little trinket...Made that stoner millions, and all it was.....a rock on a piece of string....

Ranger

 

[Rockafella Skank]

One word, my friend. AMWAY.

 

[Jimsbbc]

A friend sent off for some "literature on how to attain wealth" out of the back of some magazine. He sent them the required $5 and he got back a tiny strip of paper in the envelope that read

"Work like Hell."