05-09-2016, 09:47 AM
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#6064
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Wunder? Wonder?? Wander???
Join Date: Jun 2004
Location: QSDD
Posts: 213
Thanked 67 Times in 33 Posts
Failed 23 Times in 11 Posts
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Quote:
Originally Posted by SumAznGuy
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.
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I was referring to the overall increase in value of the asset is not outrageous not the ROI on the capital.
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