Quote:
Originally Posted by red-beard
Do you get to live in the S&P 500? A home is not simply an investment.
If you purchased the home as an investment and RENTED it, you would also add an income stream to the investment.
At $200K, you might have rented it for $1200 per month. Assuming the rent went up with your assessed value, 75% over 15 years, the average collected rent would be $1650/month.
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Bingo...
if you factor in the rent you earned on the house (or would otherwise have to spend) assuming an average monthly of 1650/month, your annualized return is almost
12%!
That calculator is pretty misleading...