If you had bought Apple stock instead of, say, the first iPod in 2001 (around $US300), you’d be significantly wealthier today.
Paragon Real Estate Group took this scenario a step further. It imagines your rate of return on an investment of $US200,000 in 2012 that you decided to sell in 2014, had you decided to invest in: gold, a bank CD, Apple stock, other stocks, or a Bay Area home.
The chart takes into consideration real estate closing costs, taxes, and other fees. The Apple stock would have appreciated 44%, the gold investment would have lost you 17%, and putting $US200,000 toward a $US1 million home in the Bay Area would have by far been the best investment: 118%.
Paragon notes that the timing of the investment has a lot to do with the results:
In this analysis, the chosen buy date was January 2, 2012 when the financial and housing markets were poised for big rebounds. Picking a different purchase date, such as January 2, 2008, would completely alter the results.
Home prices in the Bay Area have soared recently; the median sale price in San Francisco is around $US1 million.
Of course hindsight is 20-20, and the information in this chart is an approximation.
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