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i assume that they must be treating housing strictly as an investment, ie renting it out. In that case it sounds almost plausible: you get about 4.5% return in
by pascalxus 9y ago
i assume that they must be treating housing strictly as an investment, ie renting it out. In that case it sounds almost plausible: you get about 4.5% return in rent per year, plus an inflation matched housing value increase of roughly 2.5%, which gives you about 7% which matches the stock market.
- vasilipupkin 9y agoexcept, you don't get 4.5% return in rent per year, due to depreciation
- FabHK 9y agoThe analysis is explicitly in terms of total returns, ie returns from change in price and from intermediate cashflows (dividends, rental income). Edit to add: Total return = capital gain + yield