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When residential zoned buildings are used for commercial purposes, a fundamental shift in the communities purpose occurs. The situation we have now is people le
by Joel_Mckay 4y ago
When residential zoned buildings are used for commercial purposes, a fundamental shift in the communities purpose occurs. The situation we have now is people leveraging overvalued assets to acquire more speculative risk with nonexistent equity.
Tip about the "200 month rule": if a rented property valuation is more than 200 months revenue (empty occupancy adjusts to $0 unlike the "creative accounting"), than you can be 100% certain a market correction is coming soon.
I would recommend reviewing post-hype markets in Japan if you want to understand where this cycle ends in more detail. No, your shed in a gloomy remote town is not worth what you paid for it friend. As interest rates must increase to dampen inflation, the overexposed gamblers will lose their assets in the next 3 years.
Try to find a ETF that isn't a dumping ground for a firms real-estate mistakes... Hint, it is mission difficult indeed, as cultural bias drives most of these markets.
Get some popcorn, and invest wisely friend. =)