Stocks vs real estate

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Notice December is the best month to buy…Location is key but timing is important, too

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For real estate, Unfortunately December is gone by now. No one is listing or all deal listings are gone buy now.
Many stock investors re-balance (buy and sell) to make tax efficient now. I am just planning to buy stocks next 7 days, placed plenty of limit orders and bought two stocks hit my target buy level. Another 7 more to go to complete my purchases.

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Graph shows Condo & Townhouse appreciate more than SFH for San Jose & San Francisco area. But most of us (including me) think SFH is better. Multi-family wins in a lot of market though.

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About condo/townhouses versus SFH, for me location comes first and then I look for product types that can at least be cash flow neutral. In SF and most of prime BA that means condos and townhouses, versus not buying at all.

I still won’t touch multi family in the Bay Area. Maybe later I will change my mind.

If you live in Philadelphia, stock is indeed better than real estate if ignoring equivalent rent. Now I understand Shiller’s point a little better.

But in places where appreciation is low, rent yield is close to 10%. If rent inflation is really low, stocks might be better than real estate.

You should be happy that you did not live in Philadelphia.

Will Philadelphia, Chicago and other Midwestern cities revive in the next decade?

I bought in Philadelphia and lost my ass…stay away…Same applies to New Haven where Shiller lives.
I was chasing yields…-1031ed a house in Alamo into a TIC hotel deal in Philadelphia. .yielded 9% until the recession hit…

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Past performance is not indicative of future results.

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Standard terms for stocks…do you believe the rule apply for AAPL or Bay Area homes? Just LOL !

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From Jan 1, 2010 to Nov 14, 2016,

AAPL gained 280% i.e. 21.45% p.a.
BRK-A gained 138% i.e. 13.43% p.a.
SPY gained 119% i.e. 12.11% p.a.
My primary house gained 72% i.e. 8%, according to Zillow :slight_smile:

All three gained more than the financial portfolio modeled by the author. As I said many times, for most folks, just buy an index fund.

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In real estate industry stock is important factor to grow, if you have control on stock you can grow to unlimited.

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I am afraid we will stumble into some major geopolitical shit with our unpresident. He’s only in for one week and I am already tearing my hair out. It’s not looking good, mate. I just joined the ACLU this morning. Never felt so scared for this great nation of ours.

Stock market is going to get very volatile the next four years. I am thinking if I should dial down my exposure. Things are looking rather shitty… :cold_sweat:

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Only stocks or RE too.

Only stocks. RE moves much more slowly. You can see the train coming in before deciding to jump out. With stocks crap can happen in Asia while you are sleeping. In fact I’d watch the Asian open tomorrow night to make sure nothing crazy happens.

Iran and Iraq troops are fighting ISIS, not American troops. And Trump just casually put them under the bus. How about the Mexicans? Do they now want to work with us on borders and drugs? This is only Week 1, and Trump is already lighting fire everywhere.

Is he adopting Julius Caesar’s or Hitler’s or Dark Lord’s strategy?
Destabilize to justify for complete control of military and Congress in one person!

Could be. And he just put Steve Bannon in national security council.

America is now in a crusade against Islam. Crusade as in its literal meaning. So potentially we will see more terrorist attacks and then Trump can say “see? Islam is bad” and we will descend into Nazi Germany in no time.

There were stories about border agents asking to check people’s Facebook feeds and their views on Trump. I hope it’s fake news because that’s really disturbing.

FYI I joined the ACLU this morning and donated $100.

Trump’s style (ref: art of the deal)

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1924 Coolidge:

What happened after 2004 Bush rally is still fresh on our minds…

So maybe we still have a few years. But Trump is uniquely crazy. Not sure…