Matrix Blog

Posts Tagged ‘CNN/Money’

[Leverage] Calculating Your Home Investment Return Realistically

March 16, 2014 | 9:00 am | Infographics |

leverageinfographic
[click to expand]

I think many, if not most people calculate the return on their home as an investment as this CNN/Money calculator does. After seeing this, I whipped up a theoretical infographic illustrating how the use of leverage in a home purchase factors in to your return. It’s super simplistic, not factoring in opportunity cost, use and enjoyment, tax deductions, improvements and other factors because I wanted to show the power of leverage.

Forget about price indices like Case Shiller or similar. I can’t tell you how many times I have seen a home price index paired up against a stock price index as a way to determine which investment is better. Apples and oranges.

Measure your ROI using what you invested (down payment) and what your home equity expanded (or contracted) to.

The CNN/Money rate of return calculator is really only a measurement of home price appreciation compared to the same period for stocks and bonds as an opportunity cost – comparing different asset types side by side – yet that’s not how the majority of homebuyers interact with their home as an investment.

It’s most often about leverage.

UPDATE
An appraisal colleague and friend of mine pointed out that in my original version, I incorrectly used the word “profit” within the infographic rather than what I was actually talking about: “equity” ie return on investment (ROI) – how much the original down payment gained over time. The numbers all remained unchanged.

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[VIDEO] Housing Recovery + Rising Rates with Christine Romans on CNN’s Your Money 6-30-13

June 30, 2013 | 9:38 pm | Public |


[click to play]

On Friday I taped an interview with Christine Romans, host of CNN’s Your Money on the housing recovery and why rising mortgage rates aren’t necessarily a bad thing. She’s a very engaging interviewer – plus it’s always fun to visit the studio.

This clip captures a large part of the interview – there were three more Q&A volleys on the televised broadcast omitted in this clip – they’ll be airing them in other segments.

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Talking Housing Recovery on CNN’s Your Money w/Christine Romans 5-3-2013

May 12, 2013 | 12:20 pm | Videos |


[click to watch video]

Just catching up here on Matrix – had a great visit with Christine Romans on CNN’s Your Money a week ago. Also go to meet Rana Foroohar, Assistant Managing Editor at Time Magazine (sitting next to me but not in the clip) who interviewed me for her column “The Housing Mirage. Good stuff.

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[Money Magazine] Best online real estate expert: Jonathan Miller

April 16, 2010 | 11:09 am | Awards |

cnnmoneyjjmaward

I was flattered to be recognized as Money Magazine’s “Best online real estate expert“. It was part of their “100 best money moves you can make“.

I had no idea this was coming. I’m not sure what it means but I’ll take the compliment anyway. ;-)

Of course it compounds my blogguilt [defined: feeling guilty about not keeping up with your usual blog content flow] since I have been light on posts this month during my gauntlet of market reports.

Next week we release our Long Island and Hamptons/North Fork reports and THEN I return to more active blogging (until the Q2 gauntlet hits in July).


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