Single-family rental market slammed by headwinds
Single-family rental investors and their lenders face challenges: rent growth is slipping, vacancy rates are growing and a possible recession looms.
Single-family rental investors and their lenders face challenges: rent growth is slipping, vacancy rates are growing and a possible recession looms.
There have been a lot of big bills coming across my kitchen table recently. Property taxes, car registrations, income taxes, things for the school orchestra in which little MM plays the standup bass. Plus the usual credit card bills for all my spending on groceries and not-all-that-rare luxury indulgences. There’s nothing bad or unexpected in […]
The post Seeking Alpha Review: Is Seeking Alpha Premium Worth It? appeared first on Well Kept Wallet.
Demand for riskier home loans is high as interest rates soar CNBC
The topic du jour lately has been a housing market on the edge of disaster. But no one can quite agree whether itâs an affordability crisis, home price normalization, a housing correction, or an even-worse impending housing crash. The takeaway is that home price gains are cooling, and could in fact begin falling as well,… Read More »Housing Crash Imminent? The National LTV Is Below 30%
The post Housing Crash Imminent? The National LTV Is Below 30% appeared first on The Truth About Mortgage.
Real estate technology companies have been providing invaluable innovations over the past few decades, especially since the rise of mobile computing and wireless internet access. One of the most notable of these companies is Compass Real Estate Technology, which offers incredible ways to make your life easier if youâre currently house hunting. One of the […]
The post Compass Real Estate Technology: Making Home-Buying Easier appeared first on RealtyBizNews: Real Estate Marketing & Beyond.
What’s the best long-term investment? Because you’re a money nerd (and a GRS reader), I hope your answer to this question was, “Stocks!” If the future is anything like the past, that’s the correct answer. History has shown that stocks are the best long-term investment — and by a wide margin.
Unfortunately, most Americans believe otherwise.
As a part of its annual Economy and Personal Finance survey (conducted during the first two weeks of April), Gallup News asked 1017 American adults, “Which of the following do you think is the best long-term investment: bonds, real estate, savings accounts or CDs, stocks or mutual funds, or gold?”
Here’s how people answered:
While acknowledging that past results are no guarantee of future performance — let’s take a look at why I think Americans haven’t got a clue when it comes to figuring out the best long-term investment strategy.
The August 2019 issue of The Quarterly Journal of Economics included a paper entitled “The Rate of Return on Everything, 1870-2015”. Over an astounding 74 pages of discussion, the authors attempt to analyze the long-term (145-year) rate of return on a variety of assets around the world.
The paper examines four popular investment vehicles:
We’ll look at each of these in greater detail in a moment (and we’ll look at gold too), but for now let’s look at this paper’s overall findings. While the authors looked at data for many countries, I’m only going to share results for the U.S. The following table shows the rates of return for these different asset classes over three different time periods. (Remember that, for our purposes, Bills are a stand-in for savings accounts.)
From this table, it’s clear that equities (i.e., stocks) have been the highest return investments over long periods of time. Nothing else comes close. (Outside the U.S., this isn’t always true.)
Now, while stocks provide the best long-term returns, they also come with the greatest volatility. Here’s a a chart (Figure VII) from the paper that shows just how crazy the ride with stocks can be. (Also note how closely equities and real estate tracked each other until the Great Depression.)
It’s this volatility that scares so many people away from the stock market. They’re afraid that a sharp decline can come at any time. And that’s true. But what’s also true is that a prolonged bull market can occur at anytime, as we experienced from March 2009 to February 2020! If you’re a long-term investor, you don’t give a fig about short-term market movement.
Let’s dive deeper into the long-term investment returns provided by the asset classes in the Gallup poll: real estate, stocks, savings accounts, gold, and bonds.
If you’ve been working for a while and contributing to your company’s 401(k), you might feel tempted to use some of that cash to wipe out your student loans – and I don’t blame you. Saving thousands on interest and allocating those funds toward things, like buying a house or beefing up your savings, sounds … [Read more…]
If you’ve been working for a while and contributing to your company’s 401(k), you might feel tempted to use some of that cash to wipe out your student loans – and I don’t blame you. Saving thousands on interest and allocating those funds toward things, like buying a house or beefing up your savings, sounds … [Read more…]