Investment Mystery Solved (16 Countries Investigated)

Real Estate Agent with Chuck Willman 9334967-SA00

What's the best way to spend your money? Some might say spend it on things you love. Others may counter- use that money to make more money.

The secret is out. There are many ways to make money but there is one best way to do it.

So, if it's money that you love, a report titled, "The Rate of Return on Everything" is just what the doctor ordered.

The researchers exhaustingly investigated 16 wealthy nations over a 150 year time period and have released their findings.

These are the components:

The time period: 1870 - 2015

The investment vehicles: treasury bills, treasury bonds, equities, residential housing

The questions studied:
What is the aggregate real rate of return in the economy? Is it higher than the growth rate of the economy and, if so, by how much?
Is there a tendency for returns to fall in the long-run?
Which particular assets have the highest long-run returns?

The authors teased, "We answer these questions on the basis of a new and comprehensive dataset for all major asset classes, including—for the first time—total returns to the largest, but oft-ignored component of household wealth, housing."

I'll spare you the cost of downloading the report, let me just blab the results of their findings. The best investment vehicle over time is housing.

Now allow me to shout it from the rooftops.


If you like investing, housing, and rooftops: I'm Chuck Willman, an Investment Real Estate Specialist who has helped thousands of investors purchase more than $1 billion in real estate in the past decade. Yes. That's a "B" in billion. It was a crazy market and our investors bought more than 10,000 properties during the market downturn.

Photo by João Silas on Unsplash (unprofessional word art added by me. Sorry, João)

Headline photo by Ramdan Authentic on Unsplash

Comments (10)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Chuck, for the last six years, Denver saw 10% or more every year, and that is a great ROI.

Oct 19, 2018 03:03 PM
Chuck Willman
Chuck Willman - Alpine, UT

Joan Cox - thanks for the comment as well as the real-world application. I see this report as extremely big news for investors but it's a bit sleepy stuff in this forum, maybe of the "tell me something I don't know" variety. Yes- housing is a great investment.

Oct 20, 2018 07:29 AM
Patricia Feager, MBA, CRS, GRI,MRP
Selling Homes Changing Lives

Chuck Willman - I enjoy reading your blog posts. They are always interesting, different, and good information! I look forward to reading them!

Oct 24, 2018 10:05 PM
Chuck Willman
Chuck Willman - Alpine, UT

Patricia Feager - thanks for your kind words. I enjoyed finding this report. It seems, to me at least, to be great proof in the value of owning property.

Oct 25, 2018 04:32 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC

I preach this to everyone, Chuck! Diversification is key in any portfolio but, housing definitely needs to be included.

And, WOW! $1B - impressive, Chuck!

Oct 27, 2018 11:06 PM
Chuck Willman

Can I confess that it was a sad billion? Arizona turned upside down in the last market downturn. Most citizens had a mortgage that was higher than the value of their home value. If someone lost their job, within 90 days they could also be in foreclosure.

My wife and I purchased a home at foreclosure auction. It was a case where the people had walked away from the home and it was being vandalized. We fixed it and flipped it. The neighborhood lost some crime and someone bought a home at a good price. We did a few more of these and my partners and I started buying on behalf of others.

Hedge funds showed up and we started buying for them as well. Soon we were buying hundreds of homes a month. Though it was lucrative I didn't enjoy it. I did enjoy seeing the phenomena of neighborhoods losing crime and people buying below market. I didn't enjoy knowing our business model profited from someone's personal downturn.

I rarely do such real estate now. In part because the market improved and there's not much business there. The other part though was that I could hardly stomach the other part of it. It felt like an Ebeneezer Scrooge proposition.

That's my little soapbox. I'll step down from it now.

Bottom line though- it's great to own homes as an investment from both an industrial and personal standpoint. Over time they really maintain and improve value above all other forms.

Oct 28, 2018 07:25 AM
Roy Kelley
Retired - Gaithersburg, MD

I hope you are enjoying a most productive month.

Thanks for your comments on my recent blog post.

Nov 27, 2018 05:09 PM
Chuck Willman

Roy Kelley - thank you so much for taking the time to pop by and read this one.

Nov 28, 2018 04:54 AM
Ricardo Mello
Manhattan Miami Real Estate - Manhattan, NY
Manhattan & Miami Real Estate Agent

Great post!

Nov 28, 2018 08:48 AM
Chuck Willman

Thanks Ricardo!

Nov 28, 2018 11:34 AM
Ricardo Mello

We wrote a similar post recently with an analysys of the best cities to invest in rental properties. Check it out whne you have a chance...;)

May 20, 2019 06:45 PM
Roy Kelley
Retired - Gaithersburg, MD

Good Saturday morning, Chuck.

Thanks for your comments on one of my recent blog posts.

Dec 01, 2018 07:11 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

It’s always worth investigating situations like this just to learn how to solve problems. You learn a lot.

Dec 20, 2018 10:44 PM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Well I'm glad to hear this since all those other investments never had much appeal for me. Housing not only pays off, you can live in it too.

Dec 23, 2018 10:33 PM