Why has real estate ownership been SO IMPORTANT to the human race?
If you have been in real estate for some time, you probably have heard Mark Twain’s opinion, “Buy land, they’re not making it anymore.”
REAL ESTATE IS A TANGIBLE ASSET. You can touch it, see it, build on it, enhance it and manage it. Renters provide a return “on” and “of” the investment.
Return on investment is a profitability measure, calculated by taking the profit and dividing it by the cost or value of the asset. The return of the investment is the rate at which the cost or value of the asset is returned to the owner. The COMBINATION of return on and of the investment provides the basis for determining investment-real-estate-purchase decisions.