Page 3 - Stock Market.pdf
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strategies ensure they're reliable and have
domain expertise. But if you're willing
Ø Rental properties and vacation to put in the initial time and capital, you
homes: can expect a 6 to 12 percent return ,
The drop in home ownership rates has compared to a 1 to 4 percent return on
led to a rental boom , so purchasing a a single-family home. LoopNet
second property can be a great way to (NASDAQ:LOOP ) is a great source to
boost your finances. Rental get started on research.
investments can generate roughly 4 to
10 percent returns, plus any rise in Setup: Hard
equity; however, it can be difficult to be Time commitment: Medium
Money required: High ($250,000+)
a passive landlord. If you don't want to
How: Self-research
manage tenants and handle
maintenance yourself, you'll need to Ø Franchise play:
hire a trustworthy property manager. If
Invest in a single franchise or a group
you want to build equity, you also must
of successful chains, such as Subway
purchase property in a market that has
or Dunkin' Donuts (NASDAQ:DNKN ).
strong interest in rentals and vacation
The franchise industry is set to grow
homes. While many online portals will
by 1.7 percent this year , generating up
give you a feel for the market, you will
to $552 billion. That trend will likely
need to build your own
hold, as franchising has grown every
payback/investment model.
year since 2010. A franchise
Setup: Hard investment could earn you a 10 to 15
Time commitment: High percent return on your investment. The
Money required: Medium ($20,000 to biggest drawback is that buying just
$100,000) one or two will not generate enough
How: Self-research
Ø Commercial property:
The approach is similar to that of rental
properties, but in this case, you're
buying into a one- or two-star hotel
(think Days Inn [WYN] or Holiday Inn
[IHG]) or a strip mall. The initial
investment is significant, and you
needto vet potential partners to
P.G. B
P.G. Better Livingetter Living