“房子的内在价值”，与“自住和投资”完全是两码事“

“自住”和“投资”，完全是两码事

A recent post "1980年7.6万买的房子,2010年27万卖掉,为什么反而亏了?" ignored the intrinsic value of a house, which is providing shelter for somebody. Whether such value is consumed by the owner or a tenant, it's irrelevant.

It's best for the audience of this board and the author to get all the facts right, especially when people come here expecting to learn a thing or two about investing.

Back in 1980, supposedly, the rent is $300, now in 2010 the rent is a reasonable $1500. So the linear average would be $900. Over 30 years, that revenue is:
$300*12*30=$324K. (This is without compounding.)

The $324K will be reduced by tax, insurance, and repair. A reasonable guess would be 25% of that. So there are $243K profit from that initial investment of $76K. This $243K is generated regardless either:
1. by renting to a tenant, thus in the form of income, or
2. by owner living there, therefore saving the rent otherwise would have been paid to a landlord.

For an initial investment of $76K and getting a $243K return over 30 years, it's a pretty good deal, at least to me. The fact that it's worth $270K in 2010 just make it even better. Adding that, the initial $76K has become about $500K profit.

If invest in bond, the initial rate is 10%, but current rate is 2%, so average is 6%. Simple interest accumulation would be $137K, and total is $210K.

If invest in stock, could become $20,000K by buying MSFT, Berkshire, or become 0 by owning AOL, YAHOO.

Indeed, each option could be a good one for certain investors. Each investor just needs to find a good vehicle and stick with it. With time and a bit of luck, it's --possible-- that his/her goal would be reached.

This return in this example could be better or worse, depending on the rent and appreciation, and the management style of the investor. However, the intrinsic value of house should be included in the calculation of any serious investor.

www.sunskitehomes.com

所有跟帖： 

• 说得好！写得好！ -RE8888- ♂ (0 bytes) () 09/15/2010 postreply 12:52:26

• 你从来没买过bond吧?算过利率从10%到2%,债券增值多少吗? -murmur.on.hudson- ♂ (152 bytes) () 09/15/2010 postreply 12:55:21

• 不许笑话没文化的 -tiantiantaba- ♀ (33 bytes) () 09/15/2010 postreply 13:08:14

• 还不算每年的高额coupon -tiantiantaba- ♀ (26 bytes) () 09/15/2010 postreply 13:11:42

• Maybe you could write an introductory post of bond -sunskitehomes- ♂ (45 bytes) () 09/15/2010 postreply 13:15:35

• yes, that will benifit many of us...... -jy101- ♂ (0 bytes) () 09/15/2010 postreply 13:22:33

• 现在大家都看好bonds,我却看到极大的风险。现在是bonds投资最危险的时刻。 -槑- ♀ (0 bytes) () 09/15/2010 postreply 15:50:18

• Agree. With interest this low, it's very risky -sunskitehomes- ♂ (396 bytes) () 09/15/2010 postreply 16:11:41

• what about zero coupon bonds? -槑- ♀ (0 bytes) () 09/15/2010 postreply 15:52:35

• profit要减掉付给银行的利息钱:) -luckytoken- ♂ (0 bytes) () 09/15/2010 postreply 12:59:18

• 听说李连杰的上海房子涨得一塌糊涂，新加坡的房子不到一年就翻了倍， -乌不浪口- ♂ (120 bytes) () 09/15/2010 postreply 13:02:17

• 现在套住的只好继续出租出租,前途是光明的:) -luckytoken- ♂ (0 bytes) () 09/15/2010 postreply 13:07:23

• 你家买房子不用给银行支付房贷利息?1980年房贷利率14% -murmur.on.hudson- ♂ (0 bytes) () 09/15/2010 postreply 13:06:23

• 现金交易，没有贷款 -sunskitehomes- ♂ (210 bytes) () 09/15/2010 postreply 13:12:20

• 买stock也得贷款买才能公平比较。1980年的贷款(not mortgage)利率是多少？ -Lisa93- ♀ (0 bytes) () 09/16/2010 postreply 10:33:40

• the fatal point of your argument is you didn't count interest pa -jy101- ♂ (79 bytes) () 09/15/2010 postreply 13:11:08

• haha, cash deal, no mortgage -sunskitehomes- ♂ (34 bytes) () 09/15/2010 postreply 13:13:28

• haha, the original argument was base on 14% interest rate -jy101- ♂ (0 bytes) () 09/15/2010 postreply 13:14:54

• Which is another slight factual imperfection -sunskitehomes- ♂ (0 bytes) () 09/15/2010 postreply 13:16:30

• life is imperfect....raising my kids in my own home is... -jy101- ♂ (16 bytes) () 09/15/2010 postreply 13:18:36

• unfair comparison: mortgaged house vs real-valued bond -sunskitehomes- ♂ (0 bytes) () 09/15/2010 postreply 13:18:01

• CO：unfair comparison: mortgaged house vs real-valued bond -mominvestor- ♀ (22 bytes) () 09/15/2010 postreply 15:54:53

• ding 回复：“房子的内在价值”，与“自住和投资”完全是两码事“ -juzi3108- ♀ (415 bytes) () 09/16/2010 postreply 08:02:20

• Thanks to everybody for reading. -sunskitehomes- ♂ (173 bytes) () 09/16/2010 postreply 13:16:59