honobob
Thinks s/he gets paid by the post
- Joined
- May 8, 2006
- Messages
- 1,036
Why not set the clock back to 1991 and compare 7 year Hawaii RE prices? I didn't live here back in then but I pretty sure that over that period Real Estate was a flat or down in Hawaii.
Which makes it even better in a raising RE market but as millions are now learning your 10 or 20% down is now completely wiped along with your credit score...
I am not sure what Honobob point is. I think he is saying that real estate is always a great long term investment, if you pick the right location. Which is no different than saying the stock market is always a great long term investment if you pick the right stock/fund.
Obviously an almost double is nice in 6 years (although after commission fees etc it is probably closer to 80% increase in total appreciation)
First, appreciation IS NOT discounted by commission fees, etc.
Second, I only posted the FACL's "paired sales" because they purport to claim that homes in Honolulu sold for 13.9% more than last year while the OP was claiming mass disaster on the island of Oahu where people were forced to discount 10% to make a sale after 7 years of 10% appreciation!
Third, you are correct that my point is that long term appreciation of real estate can be much more than the rate of inflation. I owned in Honolulu through the 90's and my appreciation rate is still 9-10%. If I'd been a dirty market timer I could have bought and sold and possibly made more but I am comfortable with 9% because it's way easier to just buy and hold and less risky.
And D. my point is that alot of educated people here who claim some understanding of the real estate market think that all property appreciates at the rate of inflation and reverts to the mean (they never did say how they derived that figure) and make major investment decisions based on that erroneous information. I'm not trying to say they're dumb, just encouraging them to do the math. Is that so wrong?
Stocks vs. real estate? I suggest it's alot easier to pick a property over a stock to get the same or way better return and way less risky. If my stock goes bust I got nothing. My property will always be there.
4% Appreciation my *ss
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