2 ms·
If you buy a $5m house in a place where the property prices double in 10 years (eg some parts of London), it can still be worthwhile no matter what else happens
by onion2k 5y ago
If you buy a $5m house in a place where the property prices double in 10 years (eg some parts of London), it can still be worthwhile no matter what else happens.
- WalterBright 5y agoIt's even more worthwhile to collect rent on it for 10 years. How much rent can you accrue in 10 years on a posh $5m house? A price doubling in 10 years is only a 7% rate of return, which is below what the stock market in the US averages. (Prices may double, but you've got inflation, taxes, insurance, vandalism, theft, maintenance expenses, and non-trivial amounts of your time in the meantime. None of this is free.)