As bad as the housing collapse has been in America, the stock market collapse has been worse. And not for just the past year plus, but for the past 10 years.
PortReal, LLC, publishes real estate investment reports and provides custom analysis for investors and industry professionals. Here are their findings:
On average, residential real estate investments beat the stock market for the last 18 months and for the last 10 years. This is particularly remarkable as the stock market data includes the benefit of reinvested dividends, while the real estate figures account only for market value and not rental income. Real estate is a protected investment in the US as government policy supports home-ownership. This protection shows up in tax benefits to homeowners and in monetary policy that reduces volatility in prices and financing costs. Real estate has a significant edge over equities from the standpoint of risk-adjusted returns (e.g., Sharpe Ratio).
Source: http://www.portreal.com/
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_c.png?x-id=bb360451-ac7c-4947-bb94-49d79e45a04f)
Related posts:
