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To: Jon Koplik who wrote (23593)	3/1/1999 7:50:00 PM
From: Sawtooth	Respond to of 152472

Evening OT <<...prices were "almost back to their 1989 highs." Zero return for almost ten years (and, ignoring taxes (and depreciation on property with a structure on it)) is not my kind of "great investment.">> Hi, Jon. The ROI, of course, depends on the purchase price. As with stocks, RE can also be bought when there is blood in the streets but generally with much better success at timing, given the longer cycle. Just an add-on to your comment; FWIW. PS: Don't forget insurance, maintenance (even for raw land), and opportunity cost. I've always thought there was hardly a business more challenging or one that required one to be more constantly vigilant, all things considered, than large-scale RE development. Regards.

To: Jon Koplik who wrote (23593)	3/1/1999 7:51:00 PM
From: Ingenious	Respond to of 152472

Jon, actually real estate is not a great investment short term unless you buy just before the rise. Personally, buying a house with only 10% down has been the most lucrative leveraged investment I have ever made. the rise, no suprise, typically follows when a great supply of money is generated -- read the stock market ---. this has been the formula in both san francisco and san diego (qualcomm and a few bio techs). long term, real estate is a good way to round out the investment portfolio with some long term appreciation and income generating instruments. it is also a great way to saddle some low interest debt and hedge when the interest rates eventually rise. of course, one can always lose their shirt in real estate if they don't repeat the mantra "location,location, location" and ignore any broker/agent who says differently. (better to by a small lot w/ a small lot in a great location than a big house in the middle of nowhere...) IMO Leland