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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (6981)	11/20/2002 12:32:01 AM
From: jt101	Respond to of 306849

Thanks for the explanation. This statement sums it up very well. <<Obviously there will be different time periods and markets where this scenario wouldn't happen, that the house investment would come out way ahead. It's almost always true, in different time frames some types of investments do better than others. Very rarely do they all do poorly or all do well in a given 10 year period.>>

To: GraceZ who wrote (6981)	11/20/2002 3:14:33 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 306849

But If I'd put the $79,900 cash (assuming I had that much cash back then which I didn't) into the S&P on the day I bought the house and simply rented the other house for $650/month, then on the day I sold the house I'd have $188,735 according to the Nov 25th issue of Time magazine (noted by Lance Lewis today), people should today be putting their home equity in the market, RIGHT NOW! quote from this article, which is titled, “Cash Out Now! It only sounds crazy. Here's why you should borrow against your house and buy stocks”: The wisest choice when investing is often the toughest choice. Today that means buying stocks even if you have to mortgage the house — literally. Your financial adviser probably won't tell you so, for fear of being fired on the spot. Stocks, down more than 40% from their peak, are that tough a sell. But everyone who has a lot of time until retirement, little debt and a whopping gain in real estate ought to make the most of their home equity by extracting some and wading into equities.