I am 24 years old, just got out of college with a degree in finance and was very fortunate to inherit money which I have used to make an investment portfolio with a market value of $400,000. I am more familiar with stocks, bonds and funds and not too familiar with the real estate market despite the fact my grandfather was a real estate broker and my father made a lot of money through real estate investments.
Try investing in Real Estate Investment Trusts (REIT). They pay high dividends because the law requires 90% of the profits to be distributed to owners, and you don't do the work. Being a landlord is troublesome, even when you pay someone to be your agent.
Real Estate Investment Trusts (REIT) are a good investment in Canada providing good annual returns. However, they may not be available as such in other countries.
All real estate markets offer a good rate of return. Granted some are hotter than others, but regardless you have to know the market to invest well, much in the same way you do in the stock market. If you are really interested in investing in real estate, it sounds like you have to connections necessary to get to know your local market and make wise investments, but I recommend you take it a step further and follow in your grandfather's footsteps and get licensed in real estate to broaden your education and professional options. I am not convinced you understand how to determine a rate of return on real estate, so I question that claim of 50%. You aren't supposed to consider the present value, but the actual investment value (down payment). The return is the rent after expenses (mortgage payment. taxes, insurance, maintenance, vacancy rate, etc.) plus the increase in value over time (collected when sold).
