Considering their age, it seems the proceeds will be given to their children as inheritance. It is their children that will need a thorough education on money management…if they lacking. I don’t think it’s been driven deep into the minds of the youth that finances is just about the only way to be free in this world. And that means figuring out all the ways you can lose ur money and learning to avoid them.
40 years ago, 4 women bought a DC apartment building for $75k. They're now selling it for a million
- Thread starter Buddy
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Eastside Get The Money
Veteran
That part. Not even counting inflation, area alone should be multi millions
It's more complicated than that.
You gotta think of Housing more like a dividend paying stock or coupon paying bond, which have an upfront value, plus a yearly distribution ,plus an artificial tax depreciation. In that context, it's a great return that more than doubled the same return if the money were invested in a s&p 500 index fund.
Those women made nearly double that 7% in the early years from rent and nearly 2.5 times that return from rent later on. In their newer years, apartment buildings regularly give 6-8% yields and easily give 12-15% yields once they get old simply from rental income. This doesn't count generous tax depreciation in the first few years of ownership.
It was a great investment when considered holistically. Consider the fact that the avg stock barely gives you 2% in dividends, which can be arbitrarily suspended by the board, unlike rent which is constant over that time.
UncleTomFord15
Veteran
That building must be in rough condition for a full multi unit to only go for a million in DC. Good for them though either way.
Rev Leon Lonnie Love
damned mine eyes, DAMNED mine eyes!!
1M sounds low for a full building, but maybe its not been renovated all these years. Whoever buys that is gonna eat good from flipping it.
Tres Leches
Empire Business
quantitative easing
if they keptt it under the mattress for 40 years it would be worth $1000 today , smart women
if they keptt it under the mattress for 40 years it would be worth $1000 today , smart women