Fruit Salad is great at a 4th of July picnic. But once again the Seattle Times is mixing apples and oranges by reprinting a national article that sells doom and gloom for the Northwest real estate market.
I know you need the Maraschino cherry to get people's attention. But the bold graphic just doesn't support reality.
Homes vs. Stocks: When you see the graphic, one would instantly believe that stocks are a better investment. When you read the entire article, you get a back and forth argument for both approaches. But the article, and the graphic headline, miss the biggest advantage of investing in real estate.
Using the example home, it appears that if you invested $134, 567 in a home back in 1989 your investment would be worth $497,855 today. Well think about it. You probably invested $26,000 (your down payment). That investment, after taxes, interest and selling expense, nets you well over $300,000.
Again using the figures in the article, by investing that $26,000 in the stock market in 1989, the investment after taxes would net you about $50,000.
The leverage (and don't forget the joy) of investing in your home far out performs investing in stocks.
We all need a great fruit salad of investments. But let's help people understand the differences between apples and oranges.
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