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Originally Posted by AlpineWhite_SJ
Very much so, which is why you’ve got to look at northern ca a bit differently and advice from other areas can only be applied selectively in this market. It also may not even beat an index here either, surprisingly. I checked and our last house was a 90% return but the S&P 500 returned 133% during the same time period.
However putting the money into the index fund wouldn’t have given me any utility that having a house did, tax benefits, etc. and it overlooks the fact that I would have still had to pay someone rent, reducing available income to invest on a continual basis.
Home ownership shouldn’t be primarily driven by a desire for, or expectation of, appreciation, it’s a nice by-product that you may get that you won’t get if renting.
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AlpineWhite_SJ What is the total return of your house in the example above (price appreciation less property taxes, maintenance expense, HOA fees and capital improvements inclusive of any tax benefits), compared with total return of the S&P including dividend reinvestment?