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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (109666)	1/20/2015 7:23:54 PM
From: John Vosilla	Read Replies (1) \| Respond to of 220025

So cap rates of 3% on RE might be common across the board the next 2-3 years as financial repression without another credit bubble burst becomes the theme? Guess the fed will be happy achieving their objective of wealth creation via stretched RE values leading to more consumption, more trickle down and more jobs for all?.

To: Elroy Jetson who wrote (109666)	1/21/2015 9:28:31 AM
From: Maurice Winn	Respond to of 220025

<Russia with 11.5% inflation and 17% interest rates, cash and income really will be king.> 33% tax on 17% is nearly 6%. That leaves 11% after tax but before accountants and defaults. 11% is not a good return with inflation of 11.5%. Less than zero return doesn't look very kingly. But you are right about "work cities". In NZ, baby boomers are retiring in droves now. Those in Auckland are getting huge rates increases. They can sell their $1 million or $2 million house, move to Tauranga, buy a smaller house for $500,000, have $500,000 or $1.5 million to spend and enjoy rates of a third. Not to mention tiny traffic jams and less aggro. Mqurice