Quote:
Originally Posted by Alex from Montreal
That's is barely a 10% in annual return, and I didn't even consider the $45,000 he spent in renovation, nor the annual taxes, insurance and maintenance cost he spent throughout the years. If I where to had these expenses, his return would be alot less. He could have easily gotten that 10% return in stocks without paying all those expenses....
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You're forgetting he would have had to pay rent if he didn't own his own home. Add that into the equation. Even if he was paying an average of $500 a month over 40 years (40 years ago it would have been less and now it would be more) - that's $240K he would have spent out of his pocket. And 10% return backed up by RE instead of stocks a year ain't horrible.
