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Real estate is the safe harbor. It has intrinsic value. Low mortgage interest rates means cash flow can be manageable even if real asset prices drop. Populatio
by after_care 5y ago
Real estate is the safe harbor. It has intrinsic value. Low mortgage interest rates means cash flow can be manageable even if real asset prices drop. Population trends are predictable, so the future demand is basically a known factor.
Downsize is that it’s much less liquid than the average asset class.
- seanmcdirmid 5y agoIt seems to me that real estate will be one of the first bubbles to pop big like it did in 2008. Long term you might be ok, but it could take 10 years to recover what you paid for it when considering inflation. If you are pessimistic, moving into real estate as a hedge seems like a bad idea.