We caution most folks that homes should be looked upon as residences, not investments. Still, investors do buy real estate. And if you choose not to be a real estate investor, and instead take the widely repeated advice to buy and hold equities, you may be subject to a lot more volatility than the “common wisdom” advice implies.
We love the interactive charts of the New York Times. Nobody does them better. this one shows you just how variable your investment returns are over a 20 year time frame. The chart is a bit hard to understand at first, but once you get it, the results are fascinating. What you get depends on when you start, and when you end. Sounds logical enough, but seeing it illustrated so plainly is enlightening. Extrapolating, this insight applies to real estate investments as well. Click on the image to view. Thanks NYT.