"Be fearful when others are greedy and greedy when others are fearful." ~Warren Buffett
Do you have any personal experience with multifamily real estate? It's valued based on the income stream, so unless the income stream is inflated, it's not really overvalued. And increasing population + more single-member households + fewer people buying houses now = more renters. Where the hell do you think all the people losing their homes right now are going to live?
Avoidance of the kind of knee-jerk reaction that you're espousing is what makes good real estate investors incredibly wealthy.
The leverage thing I'm more willing to concede, but the numbers aren't terribly different if you just buy the property outright. And let's be honest: this isn't a true "retirement account".
Do you have a source for this? I think the number of single-member households is actually declining in most parts of the US. People move in together to reduce costs during a recession. College grads moving back in with their parents, 2 imigrant families share a 2BR apt, etc.
Yeah, I know Buffett said that but there's a reason why nobody is buying homes right now- they are still way overpriced historically compared to incomes. Anyone that tells you property never loses value is probably an RE shill or makes money somehow off the industry.
Do you have any personal experience with multifamily real estate? It's valued based on the income stream, so unless the income stream is inflated, it's not really overvalued. And increasing population + more single-member households + fewer people buying houses now = more renters. Where the hell do you think all the people losing their homes right now are going to live?
Avoidance of the kind of knee-jerk reaction that you're espousing is what makes good real estate investors incredibly wealthy.
The leverage thing I'm more willing to concede, but the numbers aren't terribly different if you just buy the property outright. And let's be honest: this isn't a true "retirement account".