5 ms·
High-end flats in Oslo rent out pretty well IIRC. Just have to front some cash to buy the pad.
by midas007 13y ago
High-end flats in Oslo rent out pretty well IIRC. Just have to front some cash to buy the pad.
- guard-of-terra 13y agoA lot of people inherited flats from after soviet union times (where you lived in, you now owned after filling some papers) plus some people bought them when prices were affordable (if you had influx of hard cash) plus people tend to buy flats because rent market is unreasonable.
- marvin 13y agoUntil housing prices fall 1% before inflation and wipe out your gains for the year.
- guard-of-terra 13y agoIt's a long position that pays dividends. Why care about volatility?
- marvin 13y agoIt's fallaious to not consider the market value of your assets as well as any income streams. In fact, this example is even worse because it also doesn't consider the cost of capital and fluctiations in the income. For the specific example of buying apartments in Oslo to rent out, sensible analysis will show that this gives a worse risk-adjusted return than other options (e.g. the stock market). But hey, go right ahead. It's not my money ;)
- guard-of-terra 13y agoStock market is prone to crashes; also you can't live in your stocks when out of other options. If you believe in long term economic stability, then go ahead and invest in stocks. We don't. And now we know at least we'll have a place to live. When economy is stable, realty prices grow; when economy is shaky, realty prices fall but slower than stocks. Stocks are more liquid on the other hand.