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

To: James Hutton who wrote (143900)	9/1/2008 9:13:45 PM
From: Schnullie	Read Replies (1) \| Respond to of 306849

Not necessary to get THAT far out in the weeds on this one....your calculation also neglects closing costs when you sell, depreciation/basis consideration, tax on positive cash flow, more factors than anyone here probably cares about. But I agree with your thesis. My real point was that tripling of a house price in 18 years is in fact a very conservative return. Index funds? Been around since the 1970s (Vanguard). When was the last time I got a 5% return? I've got a snappy response for that one too: Feb 2008, about 6 months ago. Countrywide had a 6 month CD yielding 5.5%. Its gone now but if you want a 5% return today, head to long-term Muni bonds. (I wouldn't touch 'em).