miat42: Your view on RE is trivial

Miat42,

Your previous post on RE investment is naive and trivial.

Of course, RE investment hedges against inflation well. The replacement cost for RE in general scales up with inflation. Land price also scales up with inflation. There is nothing new in your theory.

Also leverage can enhance return on investment in any asset. It can also burn you. In a up market, leverage is great. But in the down market, leverage can wipe you out. In the current RE market, one has to be very careful of leverage because in the next few years RE price has a good odds of going down.

RE and stock investment share many similar characteristics. They have their own average annual returns, and they have their own risks (standard deviation from the mean return).

所有跟帖： 

• miat42's analysis great! I bet he has more $$ than you! -SZHOU888- ♂ (46 bytes) () 10/10/2007 postreply 12:17:18

• Your concern on risk is valid, I assume you know how -miat42- ♂ (268 bytes) () 10/10/2007 postreply 12:20:15

• No personal attack pls. -cultuslake- ♂ (0 bytes) () 10/10/2007 postreply 12:45:27