Thoughts on real estate performance
04 Jul 2022
Being overexposed to real estate worked well for the current > 50-year-olds, as returns beat inflation+interest costs by a fair bit until the early 2010s. But that isn’t the case anymore & reason why the current < 50-year-olds have to think twice about how much real estate.
At today’s prices, real estate is unlikely to beat inflation + interest costs in the long run. A house will provide financial & emotional security, but financial returns as an investment won’t be enough to cover for retirement as in the past.
Image: The Ken.