Top 10 Investments of the Last 10 Years — Real Estate, Stocks, Gold or Bitcoin: Which Performed the Best?

REAL ESTATE NEWS (Los Angeles, CA) —

Below is a list of the top invest rents of the last 10 years. Check out how real estate compares to other investments in the list. At the end of this article, request free list of 2022 / 2023 best investment.

ROI stands for “return on investment”
In real estate terms, this metric identifies the profit earned on a real estate investment after deducting all associated costs, according to Bankrate.com

What is ROI on real estate?

ROI is the profit earned from a real estate purchase after deducting the costs of the investment, which typically include the purchase price and any additional expenses associated with repairs or remodeling. ROI is not realized until the property is sold. One of the most common ways to make money investing in real estate is through appreciation, or when the property grows in value over time.

There are many different types of properties to consider investing in, beyond just single-family homes. Condos, townhouses and multi-family homes can also be good investments, and you can even consider investing in tiny houses or ADUs (accessory dwelling units). It’s also possible to invest in land that has no existing structures on it.

Many real estate investors assess ROI carefully before deciding whether to purchase a particular property, in order to have a data-based estimate of how much money they might earn on it.

How is ROI calculated?

ROI = (sale price of investment – cost of investment) / cost of investment

Rentals: Owning a rental property can generate steady long-term income. Determining ROI for rentals requires first calculating your projected annual rental income and your annual operating expenses, which could include such things as insurance, property taxes, HOA dues and maintenance costs. Your ROI for a rental property can then be calculated with this formula: ROI = (annual operating costs – annual rental income) / mortgage value (i.e., the amount that still needs to be paid on the mortgage loan).

What is an average ROI on real estate?

According to the S&P 500 Index, the average annual return on investment for residential real estate in the United States is 10.6 percent. Commercial real estate averages a slightly lower ROI of 9.5 percent, while REITs average a slightly higher 11.8 percent. ROI can vary by property type, as well, so it might work out differently for a multi-family home than it would for a single-family home or an apartment building.

Other metrics to calculate investment profitability

Potential investment profitability can be assessed in several ways, and it’s not unusual for investors to combine multiple metrics to create a more complete picture. Other common metrics include:

Capitalization rate: This measures the annual, debt-free rate of return from a rental property. The formula involves three variables — net operating income, property value or price and rate of return — any one of which can be calculated using the other two.
Internal rate of return: IRR requires a more complicated calculation than ROI, and it measures the annual rate of return over a particular time period, rather than over the total time of ownership.

Cash-on-cash return: This simple formula compares annual pretax cash flow from a property to the total amount of cash invested. Cash-on-cash calculations typically measure returns over a very specific time frame, such as one year.
How many mortgages can I get to buy investment properties?

In 2009, Fannie Mae increased the number of mortgages allowed to one borrower from four to 10. However, most lenders will be very wary of extending that many loans to a single individual. Very few loan programs actually allow more than four mortgages in practice. And to qualify for that many, you will need to meet specific criteria. These include having a solid credit score and a loan-to-value ratio of 75 to 80 percent. Lenders will also want to see that any existing real estate investments on which you hold mortgages are performing well.

Get a free list of the top 10 best investments for 2023 as stagflation continues. Fill out the online form.

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Real Estate, Gold and Bitcoin – The Trifecta of Wealth in 2022

INVESTMENT NEWS — Get way, way ahead of the pack in this wacky time, increasing wealth by triangulating the trifecta of financial assets. For a fleeting moment, U.S. Dollars are king of the fiat crop when it comes to spending money, but not for long. While most other currencies are even worse, we’re approaching the end of USD hegemony in world financial affairs, as the dollar falls precipitously in value. Inflation and stagnation, here to stay for some time, must be dealt with and taken advantage of using new methods before the great currency crisis, the coming collapse of the dollar. Bitcoin is up nearly 9 million percent in just over 12 years, up nearly 10% in the last 24 hours. Gold continues to earn its salt, still proving today to be the great insurance, the supreme hedge against all that ails the greenback. Of the top wealth creators, only one is considered to be one of the basic necessities of survival — that is real estate. In a year of volatility and ambiguity, these three wealth creators shine through the clouds to provide the power, the proof and the pudding.

STOCK MARKET CRASH

First of all, we must address the stock market, one of the most popular asset classes for more than 100 years now. Why does the LA Loft Blog often discuss gold, bitcoin and other assets, but not stocks? The reason why we have not been so keen on stocks is because of the high risk-to-reward ratio, along with low utility value, compared to other assets. In a given day, stocks have hardly more than a 50% chance of making a profit. For those holding stocks for 20 years, they have close to a 100% chance of making a profit, but after rising inflation and taxes, the profit is not that great. On top of that, you cannot eat, wear or live in a stock. That’s why, when the LA Loft Blog talks about profit from stocks, we usually discuss how best to short the bad stocks in order to make a killing. As far as today’s crashy stock market goes, we won’t say “we told you so,” but we did mention and warn about it. We’ve heard some “experts” erroneously call stocks the best investment of all time. They must be listening to financial news from around 1999. There’s a new sheriff in town, and he lives on the blockchain.

THE NEW MONEY THAT REPLACES THE DOLLAR

In the last 12 years, Bitcoin has increased in value by more than 8.9 million percent. By that measures Bitcoin is by far the best investment in history. Exactly as the Loft Blog projected years ago, Bitcoin is today the king of all investments. On top of that, Bitcoin has never lost money over a three year period. Add Bitcoin’s amazing utility: In addition to being the internet money, blockchain technology for trustless transactions, authentication, verification, authorization, payment processing, digital currency, international trade, transaction privacy, small business empowerment, automation, transparency, store of value, Bitcoin has heralded a new, exponential record-breaking era of Return On Investment. Add spin-off blockchain technologies like Ethereum for breakthrough smart contracts, the future of business, taking the online marketplace by storm. Best of all, these blockchain assets protect from consumer price inflation and dollar devaluation.

PROTECTED BY GLIMMERING RELIABILITY

Gold speaks for itself, repeating and banging everyone over the head for thousands of years: “Own me, I’m beautiful and precious,” gold sings out like a Lorelei — so don’t get distracted by it’s glimmer, but do own it for less-emotional reasons. Gold is right. Considered by many to be the ultimate in sound money, gold has protected financial well-being for thousands of years. It’s hard to go wrong with gold as long as it its securely stored physical gold or kept in a place that does not ban or confiscate gold. Some places have already respected and protected the privacy of gold, including Switzerland. The United States, on the other hand, has largely set a sad course of increased wealth confiscation for some time, part of the reason why the US is now mired in stagflation. Gold protects against stock market crashes, real estate crashes, volatility, inflation and dollar devaluation.

HOME SWEET INVESTMENT

Like gold, real estate has been around for thousands of years — much longer if you include cabins, huts, caves and farmland. Real estate is the extremely popular, highly-recommended asset class that is also one of the basic necessities of survival, giving real estate, not only one of the best sure shots of return on investment, but also must-have utility that is 2nd to none. More urgently, real estate is one of the best hedges against runaway inflation, hidden depression and stagflation that scars the investment landscape of the 2020s. The investment that you live in, real estate is the gift that keeps on giving, often surpassing stocks in ROI, and standing out as the biggest and best investment that the average family makes in a lifetime.

When we add up the utility, ROI and safety provided by these three key assets, its easy to see and feel the security, wisdom, wealth and health afforded by the three diverse royals of investment: Real estate, gold and Bitcoin

Get a free list of the top ten best investments during this wacky era of inflation and economic stagnation. Fill out the online form:

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  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | PopularLuxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. This does not constitute investment advice. For investment advice, consult a certified financial advisor. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.