For most of us, our home is probably our largest asset and biggest investment that we’d like to think we make money on – but the question is, how much do we make on a home investment?
The good news is, it is indeed a positive return.
Case-Shiller, a company that tracks home prices, has determined that a person who has owned a home since 1987 has seen a 4.1-percent return on their investment – the only downside to that is that the cost of upkeep and taxes are not included in that figure.
More recently, going back to 1994 – the last bottom of the real estate market – and took it through to today, the return would be about 4.7 percent. That’s okay, because you’re beating the rate of inflation by one to one and a half percent, but it’s not big returns.
So, for long-term investing, real estate is one part of it, but also make sure you invest in stocks and bonds, and are diversified.
