Comments on: Does the average investor fare better in stocks or real estate? http://www.thickenmywallet.com/blog/wp/2009/08/17/does-the-average-investor-fair-better-in-stocks-or-real-estate/ Everything to do with thickening your wallet Wed, 01 Feb 2012 15:44:00 +0000 hourly 1 http://wordpress.org/?v=3.3 By: qmanrei http://www.thickenmywallet.com/blog/wp/2009/08/17/does-the-average-investor-fair-better-in-stocks-or-real-estate/comment-page-1/#comment-19408 qmanrei Thu, 03 Sep 2009 00:04:43 +0000 http://www.thickenmywallet.com/blog/wp/?p=1128#comment-19408 CC I'm one of those people who "claim" to buy based on cash flow. It is treating your properties like a business and running it like a business. Looking at US or CDN averages does not work for evaluating the appreciation of a property. You buy real estate in specfic cities on specific streets. When I'm doing research one area is looking at the solds on a street for as far back as MLS will go. It gives me an average apprection rate for a type of house on a specific street. Far more useful than national numbers. Love the blog. CC I’m one of those people who “claim” to buy based on cash flow. It is treating your properties like a business and running it like a business.

Looking at US or CDN averages does not work for evaluating the appreciation of a property. You buy real estate in specfic cities on specific streets. When I’m doing research one area is looking at the solds on a street for as far back as MLS will go. It gives me an average apprection rate for a type of house on a specific street. Far more useful than national numbers.

Love the blog.

]]> By: admin http://www.thickenmywallet.com/blog/wp/2009/08/17/does-the-average-investor-fair-better-in-stocks-or-real-estate/comment-page-1/#comment-19341 admin Mon, 17 Aug 2009 15:27:51 +0000 http://www.thickenmywallet.com/blog/wp/?p=1128#comment-19341 CC- you are correct. The survey takes appreciation out of the equation and focuses more on cash flow considerations. What is interesting to note is that an overwhelming number of those surveyed had an optimistic outlook for their property based on appreciation. I would suggest this tends to mirror stock investors; regardless of performance, everyone thinks they are investing in a ten-bagger. CC- you are correct. The survey takes appreciation out of the equation and focuses more on cash flow considerations. What is interesting to note is that an overwhelming number of those surveyed had an optimistic outlook for their property based on appreciation. I would suggest this tends to mirror stock investors; regardless of performance, everyone thinks they are investing in a ten-bagger.

]]> By: Canadian Capitalist http://www.thickenmywallet.com/blog/wp/2009/08/17/does-the-average-investor-fair-better-in-stocks-or-real-estate/comment-page-1/#comment-19340 Canadian Capitalist Mon, 17 Aug 2009 14:30:28 +0000 http://www.thickenmywallet.com/blog/wp/?p=1128#comment-19340 Thanks for the mention and a wealth of information on rentals. I find the data fascinating. It seems to me that "profit" is defined as "operating profit" -- income less expenses for the past year. It does not seem to include the opportunity cost of equity built up in a property or potential profit from a sale. Still, it is eye-opening data: many real estate investors claim they invest for "cash flow" while the reality seems to be that many have an operating loss, let alone positive cash flow. Thanks for the mention and a wealth of information on rentals. I find the data fascinating. It seems to me that “profit” is defined as “operating profit” — income less expenses for the past year. It does not seem to include the opportunity cost of equity built up in a property or potential profit from a sale. Still, it is eye-opening data: many real estate investors claim they invest for “cash flow” while the reality seems to be that many have an operating loss, let alone positive cash flow.

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