George Houghton a CPA in town who is specialized in Real Estate gave a seminar this Friday. His concepts on Real Estate and Real Estate investing in the Bay area are profound and supported by numbers. Please remember, these are concepts, give or take a few years.
Rules of inflation (excluding high tech stuff and salary) : every 30 years add a zero. Think about the value in gold, rent, ticket to the movies etc
For Real Estate: every 10 years values double , every 30 years ad a zero.
Your first house is free. You have to live somewhere and if you take the cost of renting a home, compare that to all the tax benefits of owning a home, it’s almost the same. Rent is paid to someone else, mortgage is paid ‘to yourself’. Of course this does not work for a million dollar home but for an entry level/median home.
Every rental cost about 10% of the value. Yes, this is true, think about it, I look forward to your reaction!
And last but not least: every $10K spend on a car is the same as $100,000 is Real Estate and 1 million in retirement… I know you have to enjoy life but it gives something to think about an spend more consciously.
By the way: George Houghton wrote a book: Unleash the power of Real Estate.
Have a great weekend!
Mirjam (mirjam@c21alliance.com)