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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 371.65-1.1%4:00 PM EST

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To: Riskmgmt who wrote (73870)5/4/2011 2:03:56 PM
From: John Vosilla  Read Replies (2) of 217836
 
'As someone well versed in this area I wanted to give a different perspective. As you know the property market is local in nature and while this may not apply to all areas of the USA, it certainly will for many.

Consider:
1. Over supply= bargain prices
2. Banks not loaning= cash is king even more bargains
3. Builders not building= little competition
4. Rents rising= better returns
5. buying below replacement cost= lowers risk
6. High rental demand due to 2= no vacancy higher returns'

Yep and funny thing is no one is talking about this. Never have seen the dynamic to where it is today given the price versus rent versus interest rate versus cost to replace environment in many places in the USA. Even most everyone in distressed all cash deals is in the flip to end users game now.

I've read this book countless times in the past when the numbers never quite worked even in the early 90's price drop rents were low and interest rates were high. Now it makes sense like it did for this guy back in the 1960's at least in my world..

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