Can you please rate my AWA? Thanks in advance?
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07 May 2015, 18:32
[quote="franloranca"]The following appeared in the personal finance section of a popular magazine:
“The average price of an acre of land in the United States is now 50 times what it was in 1970, and nearly 200 times what it was in 1920. The nation’s population is projected to keep increasing, even as the amount of land remains constant. Therefore, people who are approaching retirement should invest heavily in real estate in order to ensure their financial security.”
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The author of the article in the popular magazine advises people who are approaching the retirement age to invest heavily in the real estate market in order to ensure their financial security. This recommendation is based on two pieces of information: 1) the increase in the price of an acre of land in United States from 1920 and 1970 to nowadays, and 2) the nation's population will keep increasing while the amount of land will remain constant.
Although the conclusion of this article can be consider reliable at first sight, there are some flaws that the author did not address. Firstly, the comparison of a price of an acre of land in United States in 1920 or 1920 to that of nowadays is meaningless, because past performance of the real state market does not ensure future gains in this market. This comparison will be only useful for such readers who want to know how well the real state market performed during a period of time.
Secondly, the author generalizes all the investments made in the real state market and does not differentiate by type of investment that people can do in the real state world. For example, the author assumes that all kind of investment will be profitable , no matter if the investment is a piece of land or a commercial property, or if the investment is done in the west coast or in the east coast. Assuming that all kind of real estate investments that an investor can make are profitable, the author does not account for the differences that might exist in the real state market.
As such, the author would have to address the flaws discussed above in order to make the article more concise and reliable.
Any recommendation? GMAT is in less than 20 days. THANKS!!!