Quote:
Originally Posted by stylez2k4
That is not too outrageous is it?
$189K to $2M over 27 years is an annualized return of 9.13%. The annualized total S&P500 return from Jan 1987 - Jan 2016 is 9.47% (value of $2.4M)
(Used https://dqydj.com/sp-500-return-calculator/) |
Only difference is that, they could have leveraged that $189K. 20% down means $37,800 whereas to hit the S&P numbers, you'd need to have $189K at that time.
So 189K at Jan 1987 gets you $2M today, but $189K is the downpayment for 5 of those units, which would be worth $10M today, assuming they could afford the mortgage payments.
Of course, minus the taxes and interest, so it is less than $10M, but you get the point.
Of course, this is all hind sight and the numbers are no where near that great now for RE from an actual investment point of view.
And of course, we have no clue how much $$$ was spent on the upkeep of the house.