Re: Real Estate Average Returns?

From: "L. Chen" <am302@FreeNet.Buffalo.EDU>
Subject: Re: Real Estate Average Returns?
Date: Sat, 23 May 1998 01:03:42 -0400 (EDT)

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> .................
> I know someone who seems to be getting 5% profit on residential real
> estate and someone getting 15% profit on commercial real estate when you
> compare profit to current value of the real estate.  There is no loan.  Is
> this typical?

I don't have the answer to your question.  This is just a comment on your
comparison.

"Profit on current value of real estate" is more or less equal to the current
yield on an investment, which is DIFFERENT from the total return on a
investment.  Total return = income + appreciation.

Chen




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