Stock Market returns

[Account Closed]

Scott W.

Not to sidetrack to a stock market discussion, sure if you go back 80 years the number is correct. But my investment horizon is much less. In any 10 year period the return can be negative as well. Also I think there are fundamental shifts in the market dynamics, demographics as well as the overall economy that long term average growth in the stock market will be lower in the future than the past. Thats why I am diversifying into Real Estate. I still have a sizable sum in the stock market but it makes me queasy.

[David Beard]

John Southard - if you refer to this recent thread, it's a very similar deal, and note the comments that you will likely get close to a 20% total return with a "1%" property in a nice neighborhood where you can easily self-manage. So sure, try to get 1.25% if at all possible, but if your market is truly hot there, and this deal is right in front of you, it's not too bad.

http://www.biggerpockets.com/forums/88/topics/87935-thinking-about-making-offer-on-sfr