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> I would absolutely run from real estate right now. Prices are sky high due to inflation / lumber shortage / supply. You would be buying at peak. While things
by Gustomaximus 5y ago
> I would absolutely run from real estate right now. Prices are sky high due to inflation / lumber shortage / supply. You would be buying at peak.
While things are crazy, real-estate is good if more serious inflation hits. Charlie Monger talks about investing for inflation periods by focusing on assets where the money to create the return is spent. That way as prices rise your cost base doesn't. He gives railways as an example. Property is the same if it exists, while to your point a property builder isn't because crazy costs.
Also I agree property is overvalued at the moment, but what isn't? Its going to come down to interest rates, inflation and unemployment.
No-one really knows but my guess is inflation in the short/medium terms as global economies try to avoid the pain followed by higher interest and unemployment. Even if that prediction was correct, imagine trying to time it... its not a simple investment market! So are we back to regular ETF contributions and ride the dips?