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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (78387)	3/23/2000 8:05:00 AM
From: Les H	Read Replies (2) \| Respond to of 132070

7.2% average annual increase in one city in average rents denverpost.com

To: BGR who wrote (78387)	3/23/2000 8:51:00 AM
From: Mike M2	Read Replies (1) \| Respond to of 132070

BGR, you don't think they will catch up-g- mike

To: BGR who wrote (78387)	3/23/2000 9:24:00 AM
From: Freedom Fighter	Read Replies (2) \| Respond to of 132070

BGR, >Rents are rising at a slower rate than asset values. So, great theory, doesn't work in practise, hence rejected.<< Rents have a tendency to move more slowly than the actual costs of ownership (taxes, utilities, price of asset, repairs etc..). I would suspect that's because leases are sometimes fairly long and may not incorporate everything even if they have some annual adjustments. Ultimately though, there must be a pretty close relationship or all the owners would go bust. Certainly there would be fewer buyers if you couldn't get a fair return on your investment - which in turn would have a leveling effect. Similarly, people are always doing own vs rent analysis when they are deciding what to do for themselves. The leveling effects must just lag a bit. Wayne

To: BGR who wrote (78387)	3/23/2000 11:47:00 AM
From: Michael Bakunin	Read Replies (1) \| Respond to of 132070

Bukun, just because you're not arguing with me any more doesn't mean you can pull assertions out of your, ahem, hat, and expect us to believe them. Please document; I don't have the national, dollar-weighted overview, but rent increases have paralleled real estate price growth in the Bay Area. Home price here are up 20-25% YOY (!), and rents are up as much -- sometimes more. -mb