Real estate outperform stocks and bonds: report
Started by steveF
about 12 years ago
Posts: 2319
Member since: Mar 2008
Discussion about
http://www.cnbc.com/id/101324643#ixzz2qHlXE8Ll For investors looking to maximize long-term returns, assets that lock up funds for years shouldn’t be overlooked. At the moment, investors are keen to focus on assets that can easily be cashed out at a moment’s notice — a tendency that is holding back portfolios from returns that could be far greater, according to a new outlook report from Citi... [more]
http://www.cnbc.com/id/101324643#ixzz2qHlXE8Ll For investors looking to maximize long-term returns, assets that lock up funds for years shouldn’t be overlooked. At the moment, investors are keen to focus on assets that can easily be cashed out at a moment’s notice — a tendency that is holding back portfolios from returns that could be far greater, according to a new outlook report from Citi Private Bank cited by CNBC. Real estate, hedge and private equity funds, and other such “illiquid” asset classes are the place to park investment dollars to maintain greater control and net a higher return, according to the report. Private equity and real estate, according to the report, will generate an 11.9 percent rate of annualized return for investors over the next ten years — a drop from 2009 estimates but well above the 3.4 percent estimated return for corporate credit, or 6.7 percent for large-cap stocks in the same period of time. [CNBC] — Julie Strickland above looks like it might generate an interesting discussion..ya think? [less]
Interesting timing for an article like this. The last few years have been very kind to risk assets courtesy Q.E. and the Fed. The Fed has finally indicated its willingness to scale back asset purchases and while we're only two weeks into 2014 the stock market not unexpectedly is down. With less cash chasing assets due to QE scale back, this CNBC story may be way too late.
steveF is late to the game...
in 2009 the people who had $2+M to invest could've have gone to Miami, Memphis, Madison, etc and buy numerous properties, with 30+% down payments, that would provide them positive returns immediately. they could've sold them today and reaped the benefits of positive monthly returns for 4-5 yeaars and 100+% return on investment. buying real estate today withe same factors in those same towns will lead you a negative monthly return, or break even, and almost no return on investment that makes it worth dealing with a risky asset such as this.
"will generate"
*Will*, ha.
Too bad Steve sold all his RE to jump on stocks too late, remember that post?
Too funny.
only a dope would title a thread as such, when all know that real estate has seriously under-performed nearly all financial assets of recent.
when i saw the source, and read the "will", all was clear.
When did somewhereelse get greyed?
Who cares?
Owning real estate is FREE money.
Beats having to ready to look for a new home every twelve months..
Along with ROB that hassle needs to be factored in.
Looking for a home every twelve months beats looking for a home every six months, certainly ever two months, and definitely every week. Looking for a new home every week definitely beats going hungry. And going hungry certainly beats dying in the waiting room of the ER. So probably most of us SE readers are lucky. Because we have no idea what any of Riversider's post is about - looking for a new home every twelve months, which happens to be entirely irrelevant to this discussion topic.
hfscomm1
C0C0, take a swift smack to the side of your CRT monitor, and everything should clear up. If not, try rebooting.
hfscomm1
Ok seems like you'll need to reboot.
hfscomm1
Just reboot unless you are still keeping the asbestos around. http://streeteasy.com/nyc/talk/discussion/2729
hfscomm1