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There are very few assets that return 10% annually for 20 years. It's impossible to know what will happen in the next 20 years, but owning a house in the Bay Ar
by lpolovets 8y ago
There are very few assets that return 10% annually for 20 years. It's impossible to know what will happen in the next 20 years, but owning a house in the Bay Area for the last few decades would have been a much better investment than paying a little less for rent and investing what's left over.
- fjsolwmv 8y ago6x in 20years is lower return than stock shares in most of the employers that have been driving up housing prices (for obvious reasons -- those companies' growth are funding the housing price gains)
- usaar333 8y agoNot sure why you are being downvoted, but this is correct. The returns on VITAX far outperformed leveraged housing. (see 3rd final thought at https://medium.com/@usaar33/why-you-shouldnt-buy-a-home-in-the-bay-area-right-now-9eff37da8d6 https://medium.com/@usaar33/why-you-shouldnt-buy-a-home-in-t...) Besides, 10% is about the long-term S&P 500 average return.
- hikarudo 8y agoNot to mention that by owning you have to pay property tax, which should be considered when comparing investment returns.
- jfnixon 8y agoIt is normally a Bad Idea to invest heavily in your employer due to the Putting All Your Eggs In One Basket principle. If anything happens, you lose your job and investments.