Useful Data

since real estate in nyc tends to skew the average, im curious to know if this data would hold true when compared agaist historical nyc real estate appreciation....but regardless, its a good reminder that while everyone needs a roof over their heads, equities are where its at in the long run

one must take into account leverage when caluclating real estate returns....cant look at percent returns on principal...you only need 10 -20% of asset value to get in on real estate as opposed to 100% (yes, i know you can buy on margin) for stocks

my apartment went down 0% today.

Um no offense but did #1 and #2 actually read the article?

First she says RE has had a 1.35% average annual rate of return since 63. Then in the next paragraph she says the average annual appreciation on RE since 63 is 5.9%. Which is it?

Putting aside that conflict, at least in New York does anyone believe these numbers?
She says that 1 $ invested in RE in 63 is worth $1.79 today. Do we have to discuss it further after that? RE is up more than that in the last 3 years in NY, let alone the effect of leverage (as #3 pts out) which juice the return from 2, 3, 4, 5 times. Over 40 years, I don't know I'd guess prices are up 10+ times in NY, factor in leverage and return on capital is X times that.

Then throw in the fact that you get a 500k tax exemption on RE not stock.

That article has no basis in reality.

Reality has no basis in the article.