I will use the infographic below, going back to January 2000 to illustrate what your ROI would have been had you invested in the Dow, S&P and the NASDAQ, or if you had invested in real estate.
Although real estate clearly outpaced each of the other investments over that 13-year period, you may be.
thinking - yeah well Akim that's great, but what about the ROI from 2006 -2013? During that period, the
stock market did very well - with the Dow up 13.9%, the S&P at 12.1% and the NASDAQ taking a huge hit, but coming back at 17.4%.
But if we look at last year alone where home prices in this country are up to 12.4%. So while we're not doing as well as all of the other markets, it's a little better than the S&P and remained competitive even as the stock market was taking off.
Also keep in mind that unless you are a cash buyer, when you purchase a hundred thousand dollars worth of stock, you're paying a hundred thousand dollars. If you're purchasing a hundred thousand dollar home, your putting down anywhere from $3-$20,000. So the return on your actual cash investment flies well above the other investment vehicles.
In the days ahead, I will put this all together and help you make sense of all the information that you are bombarded with. I will help you to understand what it means for you as buyers and sellers in today's market
Stay tuned for more.............