From: bowgus 
Newsgroups: misc.invest.financial-plan
Subject: Re: Real Estate vs. Stocks
Date: Thu, 24 May 2007 18:16:54 -0500
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> What about start up cost, e.g. downpayment.  You can't buy a house
> with a 10K downpayment anymore.

Maybe not ... paid cash for mine


> Well that's nice.  I can cite stocks that I have owned that has
> appreciated over 1,000% (you read that right).   But that's an
> extremely rare example (too bad for me).  You are looking at a real
> estate bull market the last 5 or 6 years.  Compare that with the 5
> years before 2000 stocks beat real estate hands down.

There was no bull market here ... and about that last "bull market".

> In other words, can't selectively pick the time period that give you
> the max gains.

Hey, I'm just telling it as it was.

> How come you are using an 8% average return for stocks, and not the
> 20% average for the period from 1996 to 2000?

My understanding ... 8% was the norm ... but use 20% if you want.
Again, I'm just relating my experience. So $200K at 20% over 10
years ... why that's $1.2M. Geez did I ever screw up ... oh well.

> You mean boarders?  That's pretty high risk.  They can sue you, they
> could be serial killers.  But again it's apples and oranges.

Serial killers ... yikes :-)

So do you guys live off planet? Or in cardboard boxes, or what?