Get Rich Not So Quick in Real Estate
As you may have noticed, we are getting ready to sell our house. After living in our first house for about 7 years, we’ve been in our last two for 2 and 3 years respectively. The interesting thing is that each time we have made a lot of money. The past two times we’ve used this new wealth to buy more expensive houses. This time, we’ll be trading down, but we will also be paying off every dollar of debt we have other than the new mortgage. This isn’t insignificant when you consider that we are in our early thirties and both had to go to college on the back of student loans (including the wife’s three years in law school.) Looking back, I’ve noticed a parallel to the stock market. In the stock market, there are day traders. You probably remember more than one or two friends who tried this way to easy wealth in the late 90s. Only, it turns out it isn’t so easy, and ironically, that most of the people who thought they were day traders really weren’t. A day trader buy and sells positions within the same day. The entire concept is based upon taking …