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I think I've made my position pretty clear, I'm no fan of real estate at this time. imo , pre-2000 prices will be revisited unless the currency is completely de-based and wage inflation kicks in a huge way and even if this happens it will only support todays nominal real estate prices.
As a yardstick, always consider what it would cost you to buy a property with an interest only loan and 10% down. If that monthly nut is more than the monthly amount to rent the same property then you're paying too much to own it.
As for real estate trading for less than replacement cost, exactly why shouldn't it? When you drive a brand new card off the show room floor it devalues by 20% almost instantly. A house is no different, firstly you pay a premium because its new, secondly its a depreciating asset which unless you continually inject maintenance capital will completely disintergrate after a number of years.
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