Quote:
Originally Posted by venomous viper
500 shares @ 85 bucks is $42,500. If you had bought $400,000 worth of real estate in many areas in Jan. 2004 (Bend, Ore, 106% in 5 years=21% per year) at the end of 2006, the value would've increased to $705,000+. That is a $305,000 gain, PLUS some tax savings each year of about 6K. Pretty close to same results overall, imo.
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And how much property tax, insurance, management fees or management time, maintenance costs, repairs, sales commissions, etc, would be involved in 5-years of buying-holding-selling this property? I have invested in both stocks and real estate, so I am not for/against either, but you have to include such in your P&L. That goes for short-term stock trading schemes, too (commissions, taxes).