is it better to sell a house for a loss, or rent it for less than the mortgage?
By
TrophyHusband, in The Bonfire
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Remster 24
QuoteHere in Australia PROPERTY is the retirement investment. Over the long term property has out perfomed stocks in recent years.
Recent years is close to pointless when you look at long term strategies. Have you actually seen the data to back that up?
In the US, if you look at the CS index from 87 (the time the index was started) to the top of the market (December 2005), the average return on a property is only 3% annually, when taking into account inflation. Looking at a well diversified portfolio (say the Wilshire 5000) over a 20 years period, you should see at least 6% return when accounting for inflation.
Remster
The amount of the mortgage payment would help here. If we assume it's $1,500, then you'd be paying $225/month for $300 worth of equity...a nice gain if you can get it. However it's not clear that this accounts for whatever expenses you'd incur by renting it out.
Blues,
Dave
(drink Mountain Dew)
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