What will happen if you don’t invest in real estate
Author: nicker
Category: Investors Insights
Let’s say you choose to save every penny, not invest in property and stock market. In 10-15 years, average house you look for will rise from today’s $1M price to $3M price. At the same time, your saved money, for example $150K, will reduce to 50K in buying power when you look from year 2017. Simply put, even if you still own 150K face value in savings account, your actually loss will be 100K in buying power. If you consider the opportunity loss of missing to buy this $1M house back in 2007, your total loss will be:
Loss from housing: 3M - 1M = 2M
Loss from saving account buying power: 150k-50K = 100K
Total loss 2.1M
Ouch! you will lose big time.
investment property
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