Real Estate Returns
The chart below shows the historical returns of real estate -
1. The longer the holding period, the more stable the return.
2. In the short term, real estate investment displays big swings.
In the long term, how do stocks' returns compare with real estate investment? This table below summarizes the findings:
1. Stocks have the best return in the long term.
2. Real estate's long term return is even lower than that of bonds.
3. Longer term bonds only yield little extra return when compared with shorter term T-bills.