How Much You Would Have Made Over 20 Yrs In These Housing Markets


#1

Sorry to rub it in renters, but home ownership is the way to go (if you can realistically).


#2

Should’ve bought that home back in the 90s. Dog gone it! :laughing:


#3

This home owner made already 1M+ in 5 years.


#4

Should he invested that $1.83mil in,
FB, would be worth $9.64 mil
AMZN, would be worth $7.87 mil
AAPL, would be worth $3.83 mil

The FB guy can sell half of his stock to buy this house + plenty $ to splurge :slight_smile:


#5

Playing Monday morning quarterback is great isn’t it? :slight_smile:


#6

The seller had 1.9M mortgage, who gives it for FB, AMZN, AAPL. The seller is from one these companies.


#7

Way back when it was the nifty fifty…How many of those stocks did well…Buying and holding you have to assume no better than that if an index fund…I have owned index S and P 500 index funds since the 90s they have tripled. BA house prices have gone up 5 times plus leverage…


#8

Why are you comparing a broad index to a specific locale? Not an Apple to Apple comparison and it shows your bias against stocks.


#9

All you stock pickers cherry pick in hindsight . Like all gamblers there is no mention of the dogs. How many stock purchases have you regretted? I have never regretted a house purchase.
I have regretted several out of state syndicate development deals. But others have doubled my money in a year. RE allows a bit of control. Stock purchases are a shot in the dark. An individual stock investor has no control over publicly traded companies.
Do you even vote on your stock proxies. How about if you have mutual funds or etfs?


#10

I couldn’t agree with you more. Everyone is pretty good at picking individual stocks on a Monday for some reason. Real estate is king as far as I am concerned. Not only does it provide shelter and tax breaks but it is done via the beauty of leveraging. It is the main reason why my family’s forefathers rose from nothing to having at least a small piece that is of the Fab 7x7 and Bay Area. I don’t know anyone, anyone, who bought real estate somewhere in the Bay Area who didn’t do well financially.


#11

BA area RE investing is historic. My grandfather got rich scrimping and investing when everyone was poor in the 1930s. Of course the city of Berkeley punished him for his hard work and foresight with rent control 40 years later


#12

How much of your grandpa’s wealth have you inherited?


#13

His son got it all and died soon after and it ended up with his stripper girlfriend… classic. My grandma was his second wife got a house that was all. My Mom took that $100k and bought AOL stock and turned that into $1m. So we ended doing better than the stripper…lol

The point is the real winners were the rent controlled tenants who got apartments for $200/m off of my grandpas sweat and hard work. The city stole half of his net worth. Like me he did all his own maintenance. Always smelled like paint and old plumber pipes … he stank. But I admired his ability and skill. My dad was an English professor who looked down on him.


#14

I think it’s a fair comparison when people decide whether to buy a BA house or buy SP500 index fund.

Realistically the number of millionaires from housing is many times of stock millionaires. When you have too much money to spend, you can consider to buy sp500 fund to enjoy a worry free retirement.

Individual stock performance variation is millions of times more than individual house performance in a specific metro area.


#15

All I can say is that I’ve made much more money from stocks than real estate. In fact, all my real estate purchases are piggy backed off of my assets in stocks.


#16

You are the exception, Sir, not the norm. The margin of error with real estate is higher I think. Come on, my once undocumented contractor who only now speaks semi decent English did well in real estate by buying a fixer in East Oakland and remodeling it himself. I understand he would double his money if he sold after owning it for a few years. Someone like this simply would not have made that kind of money in individual stocks picking.


#17

Thank you. I do relish my exceptional status… :blush:


#18

Please do not waste that “exceptional status” by staying single for the rest of your life…:grinning:


#19

Sounds more commercial real estate focused but you get where I am going with this…


#20

If you want to be worth $100M+, then you better start your own company. That’s the path whether you call it stock or RE depending on the type of company. The point is they started their own company. Everyone else is just trying to be financially independent.