- It could be argued that both stocks and real estate are in a bubble. However, the game is the same, finding a quality stock or piece of real estate at a low price is crucial for long term returns.
- Low interest rates have inflated asset values and net household wealth, and a return to the average would be detrimental for the economy. It’s unlikely this would be allowed, but there will be volatility.
- In the case of higher inflation, a 30-year fixed-mortgage real estate investment doesn’t look bad at all.
I was struck when I read a while ago that the Obamas purchased a home in DC for $8.1 million.
I wasn’t struck by the purchase price as the former president will probably make more than that from speeches in a year, but what struck me was that the same house was previously sold for $5.3 million in 2014. Thus in less than three years, the house appreciated 52%. Also worth mentioning is the fact that the house first sold for $50,000 in 1928. More →