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First of all, 5% interest rate is amazing, please tell people to stop investing in index funds and invest in the Magic Avocado Fund (tm) instead! ;) On a serio
by deepnotderp 9y ago
First of all, 5% interest rate is amazing, please tell people to stop investing in index funds and invest in the Magic Avocado Fund (tm) instead! ;)
On a serious note, if you're talking about houses, then house prices should increase as well in that time, assuming inflationary forces keep up.
- gdix 9y agoLet me google that for you: http://www.thesimpledollar.com/where-does-7-come-from-when-it-comes-to-long-term-stock-returns/ http://www.thesimpledollar.com/where-does-7-come-from-when-i... 4-6% inflation adjusted return is not unreasonable or amazing. https://www.quora.com/What-is-the-historical-return-of-real-estate-vs-stock-investing https://www.quora.com/What-is-the-historical-return-of-real-... "So far this decade, the U.S. stock market is ahead once again. And for the past 40 years, it would have earned you almost 4 times as much as U.S. residential real estate."