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<blockquote data-quote="vin" data-source="post: 186538" data-attributes="member: 9475"><p>The only place you have a decent chance of making 10% year after year is in the stock market. Unfortunately there is no guarantee you will make 10%, and if you don't know what you are doing, staying on top of what you are invested in (doing your "homework" as Jim Cramer likes to say on his show) there is a very good chance you will <strong>lose</strong> money. You can borrow money to buy stocks, its called buying on margin. Not a very good idea unless you have a very good reason to believe the stock will go up since you are also paying interest on the money you borrowed. Bad things can happen if the stock goes down instead of up when buying on margin, too. </p><p></p><p>The same is true in real estate or any other investment. You just need to be in the wrong market at the wrong time and you can lose everything. Several "hot " markets here in the US (like south Florida and Silicon Valley in California) have cooled off. Many people bought several properties with the hopes of making some improvements and then "flipping" the property for a nice profit. Others bought properties with "subprime" loans with the expectation the market would continue to skyrocket. It worked for a time but those days are over and most who tried it lost everything.</p><p></p><p>My point is that it is very difficult to get a return of 10+% unless you are able to stay on top of your investments full time. In general it is also a bad idea to borrow money to try to make more money. It can be done but that can be a full time job in itself.</p></blockquote><p></p>
[QUOTE="vin, post: 186538, member: 9475"] The only place you have a decent chance of making 10% year after year is in the stock market. Unfortunately there is no guarantee you will make 10%, and if you don't know what you are doing, staying on top of what you are invested in (doing your "homework" as Jim Cramer likes to say on his show) there is a very good chance you will [B]lose[/B] money. You can borrow money to buy stocks, its called buying on margin. Not a very good idea unless you have a very good reason to believe the stock will go up since you are also paying interest on the money you borrowed. Bad things can happen if the stock goes down instead of up when buying on margin, too. The same is true in real estate or any other investment. You just need to be in the wrong market at the wrong time and you can lose everything. Several "hot " markets here in the US (like south Florida and Silicon Valley in California) have cooled off. Many people bought several properties with the hopes of making some improvements and then "flipping" the property for a nice profit. Others bought properties with "subprime" loans with the expectation the market would continue to skyrocket. It worked for a time but those days are over and most who tried it lost everything. My point is that it is very difficult to get a return of 10+% unless you are able to stay on top of your investments full time. In general it is also a bad idea to borrow money to try to make more money. It can be done but that can be a full time job in itself. [/QUOTE]
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