Investment plans which are not related to real estate can still impact the planning and strategy of real estate investors and brokers. The below linked article is another example of how. It focuses on whether or not investing in going to college would pay off in the long run, especially with increasing costs for a good education.
The article is based on thorough research among public college students in Texas over a 15 year period. It shows that students who attained a Liberal Arts Degree averaged more than $87,000 in additional income over that period. In a way, compiling the data is similar to real estate investors determining ROI on a multi-family building.
This is not to say that people should not attend college, or fully consider the long term impact of a decision to do so. There is another side to consider. Suppose those students had not gone to college, and worked for those four years earning just $40,000 annually. Over those four years, they would have earned $160,000 before taxes.
Suppose they did so between 2018 and 2022, and in 2022 they invested $20,000 of their income in real estate. It raises the question of what their net worth would be 10 years later if the real estate investment was the start of a portfolio, and they continued to work at what would surely be an increased annual income.
Again, this is not to say that college is not worthwhile or recommended. The point is to inspire creative thinking to plan for future situations and make comparisons. It is also to remind real estate investors and professionals that plans can be researched and formulated for long-term success just as they can for the short term.
https://www.cbsnews.com/news/college-degree-worth-it-study-liberal-arts-majors-earnings/
