No. of Recommendations: 0
Laval wrote,

I've always been puzzled because advocates of stock investing ignore real estate investments (and vice versa). I bought investment real estate in the 70's and 80's when it was enormousely tax advantaged, and had above average returns. The picture changed dramatically with the Tax Reform Act of 1987.

Real estate in the 70's had a much higher return than real estate in the 80's and 90's, largely because it was an inflation hedge. Since the start of the bull market in 1981, stocks have appreciated more than real estate in all but a few locations.

As JABoa points out, investment real estate also has the disadvantage of requiring hands on management. (I also don't want to field calls about plugged toilets at 3am.) I suppose you could hire a professional management firm to oversee your investment, but as in the equity markets, that reduces your return.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.