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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: John Vosilla who wrote (39529)8/29/2005 10:41:02 AM
From: X Y ZebraRead Replies (1) of 306849
 
I would say thinking you have control over an asset at 30 times gross rents or cap rates at 1 or 2% says a lot for the stupidity of the American people. They think by owning something tangible somehow they are safe and get bid it way beyond any reasonable fundamental measure would dictate

true... however, is such position applicable to EVERYONE who is invested in RE ? this would be applicable for the most part to speculative residential RE.

and so owning a piece of paper in a company at 400 times earnings (or whatever the hell the multiples were in the dot.bomb era) is any smarter ? -lmao

not to mention lack of disclosure, (or the company be obligated to too much of it and be penalized for missing some), or any other of the scams the WS sharks are expert at...

bottom line is... any investment is subject to proper risk measure & control (including the time of purchase)

*being stupid will only enhance the risks which exist already*

Also ironic the future value of their bubble market property like never before depends way too much on the doings of Wall Street and Washington.

indeed...

and so it is with any other US based investment (unless you are off-shore, which then one brings other risk considerations).

however, history tells us that RE is a far better bet than gold in protecting ourselves against the WS & Washington predators... in many instances, RE has protected the savings of those who have invested wisely (not idiotically overleveraged, etc.)

the real risk here is that the politicos truly attack RE, meaning reduce/eliminate some of the tax benefits such as 1031 exchanges. i do not think they would eliminate the deductibility of interest. as for depreciation allowances... well, they keep changing them but i do not think they would eliminate them.
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