I am looking to compare the average return rate on real estate to that of other investments, such as stock. I can look at the stock indexes to figure out the historical return rate, but does anyone know what the average rate on real estate is?
2006-09-06 15:32:03 · 6 answers · asked by deenerik 1 in Business & Finance ➔ Investing
It will vary depending on the time period selected and the location and type of real estate. But no asset class beats stocks, which have returned an average of 10% for nearly 100 years. Of course, you can't count on that continuing, nor can you count on real estate continuing to appreciate. Many people believe we are now in a real estate bubble that is on the verge of collapsing.
2006-09-06 16:44:26 · answer #1 · answered by Califrich 6 · 1⤊ 0⤋
Stanley's got it right.
One article you might find interesting is from Barry Ritholz at The Big Picture. It compares real estate to the stock markets.
If, after reading this, you're more interested in the stock market than real estate, you can find my homepage on the second link.
Let's make money!
Good luck
Marc
2006-09-07 03:46:08 · answer #2 · answered by Marc H. Mayor 2 · 0⤊ 0⤋
I did the calculations on my house, and it turns out that if I had stayed in an apartment, I would have come out slightly ahead. But then, I wouldn't have had my own house. But then again, I wouldn't have had to deal with all the problems that come with a house (shifting foundation, mowing the lawn, extra paperwork, termites, etc). I'm glad I did it, though. I sold it after 25 years, am happy to be back in an apartment. I want to try something else, though, but I don't know what.
2016-03-27 00:57:21 · answer #3 · answered by Anonymous · 0⤊ 0⤋
perhaps you can try forex. which is also excellent way for you to invest.
The FOREX or Foreign Exchange market is the largest financial market in the world, with an volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.
try forex from here:
http://www.bernanke.cn/easy-forex/
Good Luck && Wish you make a fortune!
2006-09-06 18:48:58 · answer #4 · answered by stock_trade_expert 3 · 0⤊ 0⤋
i would not think that there is a "rate of return" on real estate. but real estate always goes up in value.
2006-09-13 22:17:23 · answer #5 · answered by perkijer 3 · 0⤊ 0⤋
inflation adjusted U.S. home prices increased 0.4% per year from 1890–2004, and 0.7% per year from 1940–2004, whereas U.S. census data from 1940–2004 shows that the self-assessed value increased 2% per year.
http://en.wikipedia.org/wiki/Irrational_Exuberance_%28book%29
2006-09-06 20:51:14 · answer #6 · answered by Stanley 3 · 1⤊ 0⤋