Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Re: Report finds residential real estate underperforms other assets
Old 02-19-2007, 01:15 PM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
Join Date: Apr 2003
Location: Hooverville
Posts: 21,829
Re: Report finds residential real estate underperforms other assets

Originally Posted by Charles
BTW, if we're going to factor in interest on residential real estate returns, then shouldn't we factor in some margin interest on equity returns ...
This would definitely be true if we could get long term fixed rate loans against stocks. But we cannot, so advantage goes to RE on this dimension.


haha is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Report finds residential real estate underperforms other assets
Old 02-19-2007, 03:39 PM   #42
Full time employment: Posting here.
Join Date: May 2004
Location: Worldwide
Posts: 913
Re: Report finds residential real estate underperforms other assets

BTW, I believe I saw somewhere an estimate of 1% to 2% annual repair costs.
Our home was purchased for $315K ... that would mean we're supposed to spend between $3,150 and $6,300 per year keeping it up. No way. I can see spending that much on upgrades. Not just repairs and maintenance. Perhaps the 1%/2% was based upon older homes ... not a well built home today, IMHO
I would think that would include longer-term maintenance, like the eventual HVAC, appliances, roofing, etc. replacements. You might not actually "spend" that much each year, just like the full cost of driving your car is not reflected in the price of fuel.
We wrote a piece for The Motley Fool called Cost of Working: where we discussed the cost of home ownership. We cited a current Wall Street Journal article that said "Almost every house, no matter how recently or expertly built, is a money pit."

I suppose in the end it's a matter of priorities and approach.

We have readers who were thrilled with the recent past's uptick in real estate and planned on selling their house to buy another cheaper one in a different state. They went traveling for 6 months, came back home and the market went soft. Now they have a 'ta-hoo-ma' (ta hoom I gonna sell this?) in one state and another home they are upgrading in another. Their (retirement) time is spent driving uhauls from one state to the other and repairing the 'new' place to suit them while they are hoping their other home sells.. meanwhile, the wife went back to work... ?

Again, I suppose in the end it's a matter of one's priorities and approach to housing.

Author, The Adventurer's Guide to Early Retirement

In 1991 Billy and Akaisha Kaderli retired at the age of 38. They have lived over 2 decades of this financially independent lifestyle, traveling the globe.
Billy is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Prediction: California Real Estate Sam Other topics 136 01-15-2009 10:44 PM
Real estate escape question queeneev FIRE and Money 16 02-04-2007 09:26 AM
Prepaying real estate taxes for SEVERAL future years? MooreBonds FIRE and Money 16 01-25-2007 05:40 PM
Book report: The ABC's (sic) of Real Estate Investing Nords Other topics 6 05-24-2005 05:40 PM
Real Estate Bubble in D.C. - CBS News tonite.... Cut-Throat FIRE and Money 23 05-19-2005 01:44 PM


All times are GMT -6. The time now is 12:48 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.