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I disagree with the other posters about buying real estate if you think it's the peak of the bubble. The price of real estate is strongly correlated to that of

I disagree with the other posters about buying real estate if you think it's the peak of the bubble. The price of real estate is strongly correlated to that of other assets, such as stock. Unlike stock, it can be illiquid in downturns. Undeveloped land is especially difficult to sell at market value even during good times.

markvdb 7y ago
I see your point. Hardly applicable in our case though. We bought a humble fixer upper countryside retreat with two hectares of productive farmland for under 10k€ in cash. A one time insurance premium really rather than an investment. Even if it generates some income beyond covering the recurring costs for real estate tax, electricity and maintenance.
Gustomaximus 7y ago
The difference to consider here is in 'crisis'. Banks can fold. Companies can and will go bankrupt. But land will be there. And it's not just about the crisis event, it's riding the bounce after. Sure you might buy at the peak today, but it will return to growth on the other side of the cycle plus have more security of most other assets. A friend of mind manges investments for high net worth individuals. I said once do they all come to you and look how big your past returns are? They said no, most come to them and say 'how can I make sure I'm never poor'.
- AstralStorm 7y ago
  Depends on whether the crisis results in war or not. If it does, land is very hard to move or recover. See, it's almost 100 years past World War 2 and some property disputes are still alive... So it can be a part of a strategy but not whole of it. Especially any undeveloped land is extra problematic. (It will fall to whoever developed it by law most of the time, requiring a buy out at most.) And if the emergency is something requiring immediate liquid assets land is especially worthless. There are many such emergencies.
imtringued 7y ago
Yeah but the point is that you don't want to sell in downturns anyway. If you need emergency liquidity then focus on owning Bitcoin or gold.

markvdb 7y ago

I see your point. Hardly applicable in our case though. We bought a humble fixer upper countryside retreat with two hectares of productive farmland for under 10k€ in cash. A one time insurance premium really rather than an investment. Even if it generates some income beyond covering the recurring costs for real estate tax, electricity and maintenance.

Gustomaximus 7y ago

The difference to consider here is in 'crisis'. Banks can fold. Companies can and will go bankrupt. But land will be there. And it's not just about the crisis event, it's riding the bounce after. Sure you might buy at the peak today, but it will return to growth on the other side of the cycle plus have more security of most other assets. A friend of mind manges investments for high net worth individuals. I said once do they all come to you and look how big your past returns are? They said no, most come to them and say 'how can I make sure I'm never poor'.

AstralStorm 7y ago
Depends on whether the crisis results in war or not. If it does, land is very hard to move or recover. See, it's almost 100 years past World War 2 and some property disputes are still alive... So it can be a part of a strategy but not whole of it. Especially any undeveloped land is extra problematic. (It will fall to whoever developed it by law most of the time, requiring a buy out at most.) And if the emergency is something requiring immediate liquid assets land is especially worthless. There are many such emergencies.

imtringued 7y ago

Yeah but the point is that you don't want to sell in downturns anyway. If you need emergency liquidity then focus on owning Bitcoin or gold.