yeah..the price of housing doubles every 10 years...what planet do you get that data from? it's stupid misconceptions like this that helped get us into the current crisis we are in... ahhh, spend my home equity because the house is going to double in value every 12 months... You are a financial airhead...
Personal attacks? Tsk! Tsk! Using profanities? What do you lack civil upbringing? Apart from that I will answer this for you. Bought my first property 1988 for $60,000 ( foreclosure sale) Value todays real estate market $600,000 Net gain = $540,000 Tell me where you can do that? Gone through 3 real estate cycles the worst one 1992- 1997. The values kept on increasing flawlessly, I didn't have to do much. Can you do that? Yes you can... its not rocket science. Real estate always goes up when cycle comes it doubles and triples in 2 years the demand is hard and furious red hot...you have to beat the buyers away with a long stick.
Profanities cheapen conversation, if you think we are having one. Please refrain yourself. Come back with an intellectual rebuttal and take me out if you can..
You didn't make 540k. People crack me up. Although if what you said is true, that is a great deal. When I was getting my masters, I did a paper on real estate and people have this idea that they make money holding long term real estate. I am not going to get into it in depth but for the average person...taking out a 30 year loan, by the time you pay interest and all the up keep on a house, you actually lose money. However, it does give you shelter which is priceless. Get what I am saying? I will have to find that paper.
Maybe its not a big return on the investment dollar wise, but somtimes it is if a person buys, holds for 5 or so years, then sells before putting into too much interest or upkeep. But those that own their own home can leave it to their children in estate. Leaves something to their children when they are grown, Renting an apartment is paying someone elses morgage and someones elses children reaps the reward. Nothing wrong with renting if a person doesn't want the hassle of upkeep, but owning has its benefits.
I bought a stock once... it went up 800% in 2 years.. Hence, all stocks go up 800% every two years...it's not rocket science...stocks always go up when cycle comes it doubles and triples in 2 years the demand is hard and furious red hot...
How about this one. In october of 2002 RIMM was trading at 2 bucks a share. a 200k investment would have turned into 23mm in 5 years if you would have cashed out at its high.
That is huge appreciation for the time frame and unusual. iF hedgefund2 house did go up that much I would guess he bought in an area that was average in 1988, and then that area or town turned into a hot spot for some reason. Unusual, but it does happen. But no, the average homebuyer will never get that kind of appreciation over the time frame.
Right...so by HidioT's logic, that would mean that all stocks do that, all the time, and so you should just be optimistic all the time...if you are short, you are a pessimist... HAHAHAHA....what a dunce!