The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: MulhollandDrive who wrote (7301)	12/12/2002 5:00:42 PM
From: Elroy Jetson	Read Replies (2) of 306849

what are these people thinking?? This same commercial property cycle has occurred in Los Angeles since 1990, though to a smaller degree. By the time prices start to firm, new projects built on property bought at distressed prices, create new space further depressing land prices. The free market can often out-stupid any bureaucrat. Sam Zell realized this a long time ago. When the market peaks, he always sold almost his entire portfolio. He now operates with OPM (other people's money) so he sells off less property. But he can more easily sell off shares in his own REIT to buy back later. Real estate is always at a premium at the top of a bubble. It's often a good investment when no one wants it. As Betty Tradelite says, "real estate always goes up, just so long as you can ride out those 95% declines in value." "Your rate of return may be pitiful, but when you retire in another 150 years you'll be glad you invested."

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