Grex Finance Conference

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Grex Finance Item 4: Long term investment results
Entered by jon on Fri Oct 15 19:57:26 UTC 1993:

Here are some interesting figures:
   Over the last 20 years,

        Single family homes have yielded 7.3%
        Gold has yielded 6.8%
        CD have yielded 8.5%
        Growth Mutual funds have yielded 11.7%

Of course one has to pay taxes, do maintenence, etc on a home.  On the
other hand, one gets a place to live.

6 responses total.

#1 of 6 by peg on Wed May 4 02:21:32 1994:

I bought my condo at the peak of the real estate boom in 1988.  Although
most condominiums lost a lot of value over the last 6 years, I was
still able to refinance in September at 7.75. (Originally borrowed
at 7 1/8, max rate 10.5, converted to fixed 10% when Bush assured us
that fixed rates would never go lower than 9%.)  I bought because
the changing tax laws had eliminated all my other deductions.

I got more great tax breaks in 90 - 92 when I had to rent it at a loss
while on long term travel.  I have been paying money back into my own
pocket instead of giving it to someone else, and I hope to keep it
as investment rental property when I move up.  Glad I bought it, but
it's important that you like it as your home...not just as an investment.

Gold is too scary.  CDs were a nice first step into investing, but
boring and certainly not attractive right now.

Mutual funds are the best.  Relatively simple.  Lot's to choose from.
I've got 7.  Try to dollar-cost average with as many as possible.

Next step.  Individual stocks.  Within two years I'll do that.

Here's my contribution to reviving an old conference. :-)

#2 of 6 by klg on Wed May 25 20:45:00 1994:

Can anyone recommend an S&P 500 Index Fund with low fees?

#3 of 6 by katie on Thu May 26 01:18:15 1994:

I can, but not online, sorry.

#4 of 6 by srw on Thu May 26 02:07:26 1994:

Since there's no research to do, I would expect all index funds to have
very low fees. Are there exceptions?

#5 of 6 by hut on Wed Jul 20 18:20:37 1994:

I've been renting for a long time and it really does suck. The value of the
home goes up, the rent goes up. The property taxes go up, the rent goes up.
The property taxes go down, the rent stays put. Renting is like bending over 
and getting it in the ass.

#6 of 6 by srw on Thu Jul 21 06:08:32 1994:

Unless rent control is in effect, it's probably market effects that control
rental rates more than anything else. Save any money you can for a 
down payment and get out of renting.

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