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I think the problem is individuals treating real estate as a risk free asset (it’s not) and our cultural acceptance of retail investors placing highly leveraged
by aserafini 6y ago
I think the problem is individuals treating real estate as a risk free asset (it’s not) and our cultural acceptance of retail investors placing highly leveraged bets (via mortgages) on those assets.
If you have a bad portfolio (100% real estate) and you’re highly leveraged, you’re going to have a bad time.
- WWLink 6y agoThis sounds most correct to me. A lot of landlords out here see their houses as ATMs and milk them for all its worth. You can't even "take your business elsewhere" because they're all janky and in bad need of a remodel.