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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: X Y Zebra who wrote (39579)	8/30/2005 6:22:36 AM
From: Riskmgmt	Respond to of 306849

A well written post. I agree Real Estate has many segments as well as being diversified by location. One can not paint them all with the same "bubble and bust" brush. The buyers and sellers in the commercial industrial arena are very knowledgeable and sophisticated versus the ones you see at Home Depo and the "Get Rich Quick" RE seminars. This kind of RE can be a hedge against inflation if bought or built right and in the right location. Financed with a low fixed rate Mortgage or owned outright with good tenants. One might get a market where it isn't easy to sell or where cap rates rise along with interest rates, depressing sales prices in the short term. However, longer term it will prove to be as you say. Unless, that is, if Mish is right about deflation, then we are all toast!