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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (47868)5/9/2012 10:35:52 AM
From: Jurgis Bekepuris   of 78746
 
The risk is that Beazer will push its own inventory that it can't sell to the REIT. If it does not sell, does it mean that it will rent well? I wonder. :)

On the other hand, the fact that they will push the inventory from single subdivisions/communities to the REIT may make it easier to do the maintenance/upkeep. As Buffett said, the big issue with big single-family house investment is the lack of scalability. If houses are located in more concentrated clusters, at least part of the issue goes away.

Finally, renting out houses in partially sold subdivisions/communities might increase community attractiveness to buyers: there will be less of a ghost town feel and fewer ghost town issues. But it's not guaranteed...
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