“My parents bought a home for $300k 30 years ago now it’s worth $1mm”
About 4% rate of return in this example
- Lots many variables:
- Cost of renting
- Interest rates
- Property taxes & maintenance costs
- Cash for down payment
- Is it a good investment compared to what?
- S&P 500 long-term return is 10%
- Historically, housing prices have averaged around 4% per year
- Huge differences in different parts of the country, but this is national average
- Shouldn’t be viewed as a purely financial decision
- What about owning a home as a rental property
- Appreciation
- Rental Income - cash on cash return
LET'S CONNECT!
James
Scott
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