<p>I think we all know that real estate is local.</p>
<p>It doesn’t matter that real estate in some areas is going to take 15 years to make new highs.</p>
<p>What matters is what your investment is going to do going forward.</p>
<p>The buy and hold vs the flipping argument…</p>
<p>I am actually in this situation right now with a bond.</p>
<p>Do you take a 20 percent return for 1 year…or do you take an 8 percent
return on the same investment for 20 years?</p>
<p>I am choosing the 8 percent return for
20 years instead of the 20 percent return for 1 year. Right now…I don’t see myself reinvesting the money elsewhere with the same risk, and achieving the 6.3 percent return for 19 years I need to match the 8 percent return by doing nothing for 20 years.</p>
<p>So…in this case…I am guess I am choosing renting over flipping…</p>
<p>The flipping thing kind of depends on how many times you can flip and how much you make.vs price appreciation…and rate of return on capital…On a longer term investment…</p>
<p>If you can only flip one time…it may not be worth it…if you can flip multiple times…flipping might look better…</p>
<p>Also depends on whether you want to be in the landlord business.</p>
<p>No receipts, cash business, gotta love it…coin dealers give me a call when they get coinss or gold bars in…it is the underbelly of investments…no taxes in the last several years</p>
<p>It is significantly better then investing in the silver or gold ETF’s…depending on dealer/coin guy, or back room dealer in NYC,the markeup is way better then commission of a stock trade with no capital gains…</p>
<p>If I assign a reasonable value to my labor, I’d estimate sweat equity would be 10 to 15% of the amount we have invested. So it’s not necessary to do it yourself, you just need more money.</p>
<p>The other advantage of investing for income is that I don’t really care all that much what the current value is. I have several properties that are seriously under water, but since I make money every month on the cash flow and have no plan to sell ever, I don’t lose sleep over it.</p>
<p>Notrichenough…I think if you are going to hold something for decades and you are cash flow positive…you are probablly correct…Really…your renter is paying a large part of your principal, anyway.</p>
<p>I can go over a year and not look at some of my stocks…because I am going to hold them for 10 years or more…</p>
<p>And sometimes…I do get unpleasant surprises…whatever.</p>
<p>Qdogpa…I am not getting you…it is costing you about 2 percent total to go in and out of your coins?</p>
<p>I guess if you hold onto them long enough that is cheaper than a Etf.</p>
<p>And gold mining shares…they are in their own little world…lately …a very dark, dark world.</p>
<p>I’ve never paid CG on coins because I’ve never sold them - I have no plans to sell them. I’m talking about paying CG taxes on profits - apparently this person doesn’t pay income taxes on gains.</p>
<p>BTW, on precious metals funds, CEF is an exception on collectables. Not sure why but it’s why it’s the only paper-gold holding that I have.</p>
<p>Actually, I pay use taxes on all internet transactions because my state requires payment of use taxes. Most people do not play taxes on Amazon purchases because they do not know use taxes are owed.</p>
<p>I do everything humanly possible to avoid paying taxes, but I pay what is owed.</p>
<p>My state has a “safe harbor” amount of use tax you can pay every year, rather than having to track all your non-taxed purchases for the year. </p>
<p>I pay that amount every year.</p>
<p>In any case I wouldn’t be admitting on-line to cheating on my taxes, since it would take about 5 minutes through this site and my ISP to track down who I really am.</p>
<p>I amin witness protection program,lol… Seriousy, they could arrest every dealer in the tri- state area, and those who trade gold and silver bars in NYC…fwiw,i pay all taxes on out of state purchases, :)</p>