Hacker News new | past | comments | ask | show | jobs | submit login

This is an interesting "investment" example. In addition to the listed trade-offs, the mortgage would've likely allowed 25% cash down in 1976, approximately $18,000. Furthermore, savings in rent would've largely gone toward mortgage interest, repairs and capital expenditures. Given these assumptions, the result over a 40 year period would be an annual return of 10.12%[0].

Even so, the approximate return from the S&P 500 (reinvesting dividends) over the same period would be 11.468%[1].

[0] http://www.moneychimp.com/features/portfolio_performance_cal...

[1] http://dqydj.net/sp-500-return-calculator/




One thing to add... It's only in rare parts of the US that real estate appreciated so much, but you would have gotten those equity returns anywhere in the country.




Guidelines | FAQ | Support | API | Security | Lists | Bookmarklet | Legal | Apply to YC | Contact

Search: