Quote:
Originally Posted by Rerun
I don't know but I wouldn't be surprised if, on average, real estate has a higher return than stocks or bonds.
Plus, with real estate you get to easily leverage your money.
Fyi, the house I bought last August of 2009 for $440,000 was originally built and sold for $280,000 in 2004.
Say the original owner put a down payment of 10% ($28,000). On their original investment of $28,000 they made a profit of $132,000 (not taking into account RE fees) in 5 years!
There is no way I could invest my money into stocks or bonds and make a 471% return on my money in 5 years.
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Sure you could if you picked the right stock, even the right sector. If someone bought a huge portfolio of Oil and Gas stocks in 1999 by 2004 they had made a huge amount of money on those.
Plus thats not a great example as the timing falls pretty much within the bubble where real estate grew. I don't think that same house is going to appreciate at the same rate to the point where a 44 grand in vestment in that house is going to appreciate to 220 grand.
For any Albertan who bought real estate prior to 2006 those people did see the value of their house appreciate substantially. But that boom is the type of thing that happens once every 20 to 25 years.