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Can you give an example of capital value flying upwards so high that people are discouraged from buying in due to inflated asset prices?
by a008t 8y ago
Can you give an example of capital value flying upwards so high that people are discouraged from buying in due to inflated asset prices?
- jandrese 8y agoSouthern California homes?
- a008t 8y agoAre they really disconnected from rents in that area, as well as reasonable expectations of future growth in demand - given low interest rates, which mean you have to consider the performance of the asset far into the future? In other words, if these assets were any cheaper, would they not be underpriced vs their intrinsic value, making it a great investment with someone with enough capital - thus bidding the prices back up?