Real Estate

  • 19 Jun
    Stocks VS Real Estate: Bubbles Or Investments?

    Stocks VS Real Estate: Bubbles Or Investments?

    • It could be argued that both stocks and real estate are in a bubble. However, the game is the same, finding a quality stock or piece of real estate at a low price is crucial for long term returns.
    • Low interest rates have inflated asset values and net household wealth, and a return to the average would be detrimental for the economy. It’s unlikely this would be allowed, but there will be volatility.
    • In the case of higher inflation, a 30-year fixed-mortgage real estate investment doesn’t look bad at all.

    Introduction

    I was struck when I read a while ago that the Obamas purchased a home in DC for $8.1 million.

    I wasn’t struck by the purchase price as the former president will probably make more than that from speeches in a year, but what struck me was that the same house was previously sold for $5.3 million in 2014. Thus in less than three years, the house appreciated 52%. Also worth mentioning is the fact that the house first sold for $50,000 in 1928. More →

  • 23 Feb
    Bubble, Crisis, Bubble, Crisis – Debunking The Chinese Real Estate Sector

    Bubble, Crisis, Bubble, Crisis – Debunking The Chinese Real Estate Sector

    • The Chinese government is controlling the real estate market and allowing short, two-year boom bust cycles.
    • Western investors don’t understand China and see either a bubble or a crash.
    • The best way to invest is to seize the wild market swings created by such erratic behavior.

    Introduction

    The question we would all like to know the answer to is this: is the Chinese real estate market in a bubble?

    If it is, any kind of burst would create a credit crisis, lower economic growth, and quickly spill over first on global financial markets, and consequently onto the global economy.

    There is no consensus on whether or not Chinese real estate is in a bubble. I’m going to describe both perspectives to give you the best information possible for China and Chinese real estate related investments. More →