Rental Real Estate
Written By: Tom Hankes | Posted: Friday, November 2nd, 2012
Desperately Searching For Yield
Recently, I discussed the merits of rental real estate with a couple I know. They had visions of a relatively decent retirement and expected to earn reasonable yields on their cash. But yields cratered; an excess supply of money drives rates down as borrowers can select from the lowest rates in decades and savers are penalized. The ten year Treasury bond yield is 1.78%. With this level of return, a family with $500,000 dollars in savings (how many have that?) drawing $30,000 annually for retirement needs will be out of cash in about 19 years.
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