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5% RE increases per year

Started by hoodia
over 12 years ago
Posts: 154
Member since: Jun 2009
Discussion about
Thats what I have been hearing. Hard to believe almost Barrons has it as the cover story for owners.
Response by 300_mercer
over 12 years ago
Posts: 10662
Member since: Feb 2007

It is just to make renters feel bad unless they are investing very wisely otherwise.

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Response by fieldschester
over 12 years ago
Posts: 3525
Member since: Jul 2013

Despite lousy financial skills, at least 300_mercer has a sense of humor.

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Response by AlphaShark
over 12 years ago
Posts: 18
Member since: Jun 2011

But if stocks resume 10 to 15% per year like the 80s, 90s, then renting becomes a better alternative as 5% house returns are too low. I think lux properties in top areas will do better and mundane properties will be rather flat given the demographics

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Response by aalsberg
over 12 years ago
Posts: 99
Member since: Mar 2011

If you had your money in the stock market index fund you would have made several times 5% per year since 2008, so renters probably think of themselves as smarter, plus they didn't have to pay for any repairs to the apartment during this time. Its nice to own, but not always wise to own!

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Response by fieldschester
over 12 years ago
Posts: 3525
Member since: Jul 2013

>If you had your money in the stock market index fund you would have made several times 5% per year since 2008

You know, you can put down a down payment on an apartment, AND put the rest of the money in the stock market. You could even lever your money in the stock market too.

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Response by pier45
over 12 years ago
Posts: 379
Member since: May 2009

I thought he meant property tax increases will be that much. Sounded low.

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Response by NYCMatt
over 12 years ago
Posts: 7523
Member since: May 2009

Yeah. Funny how it's always an all-or-nothing thing with these absurd stock market-versus-buying-real-estate computations.

Investment dollars are investment dollars. Period.

Housing dollars are housing dollars. Period.

It just makes more sense to not throw your money away for decades on rent.

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Response by aalsberg
over 12 years ago
Posts: 99
Member since: Mar 2011

Unfortunately we are all renters. If you don't pay your property taxes the government(landlord) will take back your property. Owners just pay quarterly where as tenants pay monthly. Fieldschester your right.

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Response by fieldschester
over 12 years ago
Posts: 3525
Member since: Jul 2013

We are renters in life.

Nevertheless, if you support smaller government and lower taxes, you will mitigate the concern you reflect.

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Response by somewhereelse
over 12 years ago
Posts: 7435
Member since: Oct 2009

5%! Break out the champagne!

I am a little pissed that SSOs are down. Now the return is only 588.39%. I need to see a shrink about this.

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Response by gothamsboro
over 12 years ago
Posts: 536
Member since: Sep 2013

> I need to see a shrink about this.

No, no. We like you the size you already are.

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Response by NYCMatt
over 12 years ago
Posts: 7523
Member since: May 2009

This year's maintenance increase: 0%.

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