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Liberty Rental Properties
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Even Better than Stocks
· Compared to other investments, such as stocks, a home is a relatively stable investment.
· Homes tend to increase in value at a steady, reasonable pace while alternatives can be extremely volatile.
· For example, during the stock market decline of 2001-2002, households lost more than $1 trillion in stock value, while their housing equity continued to climb.
· Looking at this another way and applying the power of leveraging, if someone put $10,000 into the stock market in 1996, the average annual S&P return would make that investment worth $21,500 today—an increase of $11,500.
· By comparison, the median priced home in 1996 was worth $140,000. Today, that same home would have gained more than $147,000 in value. And the real value of the investment is worth even more, because the homeowner has paid down a significant portion of the mortgage in the interim.
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