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Strategies & Market Trends : New US Economy Policy

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From: Arthur Tang8/10/2009 7:01:12 AM
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As cities develop, real estate value goes sky high. Then when people moved away from the cities, real estate value decrease because of age. This means properties had to be refurbished for new occupiers.

Commercial properties will suit the renters and refurbish. Rental income will increase and property value more than recovers. Typical unused commercial property will remain at 50%. Residential properties are seldom unoccupied.

To grow a city, it is easier to promote tourism, with convention center, hotels and restaurants. It is less likely to bring in manufacturers than chain stores. But first, you build a financial center for others to invent.

The recent economical disaster was mostly fraud on Wall street, where mortgage was bought and sold naked without land and building. One day the mortgage trust is making money, next day it was worthless. No real estate changes hand. Ponzi games exposed.

With most of the fraud exposed, the economy will be rebuild with real real estate values.

Years ago, Japan had real estate bust. It was fixed by refurbishing the real estate. when rental income increased, the value of mortgage increase. China is now routinely refurbishing their city properties.
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