The Greatest Investment of The Last Century–and It’s Not The Stock Market
If we were taking a poll right now on which asset has produced the greatest return over the last century what would be your pick? Is it stocks, bonds, or real-estate? If you voted for stocks you wouldn’t be alone, most people believe that the stock market is the only real vehicle for creating vast amounts of wealth. This is due to the glamorization of wealth that is often depicted when people think of wall-street.
The truth is that fortunes have been made in the stock market since the industrial revolution, and people will continue to make a fortune in the stock market going forward, but let’s not forget the oldest and most crucial investments which is real estate. Most people, even investors, think that real estate falls way behind equities in terms of returns; that appears true if you only look at appreciation and don’t account for income generating properties. If you are still nodding your head thinking that nothing compares to equities keep reading.
According to new research “The rate of Return on Everything, 1870–2015” by Oscar Jordan, Katharina Knoll, Dmitry Kushinov, Moritz Schularick and Alan Taylor real estate has outperformed equities since 1870. They discovered this controversial fact by gathering the largest data set in history to study stocks, bonds, and real estate over the last century to determine the rate of return on everything.
Some of the facts discovered in the research:
- They studied every major asset class over the last 148 years and residential real estate is slightly higher than the return on equities– with a total return of real estate coming in at 7.05%, and equities coming in at 6.89%.
- Housing wealth is on average roughly one half of national wealth in a typical economy, and can fluctuate significantly over time (Piketty, 2014).
- A diversified global equity portfolio isn’t a hedge against country specific risk. In stark contrast cross-country housing returns have remained uncorrelated promoting country specific hedging.
This brilliant and comprehensive research study does not support one investment choice over another, investors have made fortunes in both equities and real estate alike; however, the researchers do point out the desired investment portfolio would contain international real estate investments that would grow with appreciation and also provide protection from downside.
“The ideal investor would like to hold an internationally diversified portfolio of real estate holdings, even more so than equities.”
Due to recent technological advancements it’s easier now more than ever to invest in global real estate through online market’s like RealtyRelturns. With their simple point and click interface you will be able to search properties on their website, read through documents and financial statements on properties, choose between different types of real estate assets, and also invest in these properties with as little as 2 ETH. This opens up the opportunity for diversified global fractional real estate investing without going into massive debt or spending hundreds of thousands of dollars in cash.
RealtyReturns is democratizing real estate investing by offering cross-border real estate transactions through their online portal. Regular people can invest in real estate through their ERC-20 compliant security tokens. The integration of the blockchain into the traditional real estate investing model provides asset-back tokens and liquidity to investors all across the globe. Each token represents legal ownership in fractional real estate with access to income generating properties and capital appreciation.
Democratizing global access to investment grade commercial real estate using the blockchain. Visit RealtyReturns.io and join our Telegram group https://t.me/realtyreturnsglobal
Trevor Whiting
VP, Investor Relations
RealtyReturns
Experienced Sales Leader of over 14 years and has started offices in London, Toronto, and the US. He was VP of Investor Relations of RealtyMogul where was responsible for revenue growth, sales operations, and growth initiatives. Under his leadership, he developed a sales playbook that resulted in 2x growth.
