Five-Year View of Real Estate
Wednesday, April 22nd, 2009Like James Saft, I believe that we will face heavy inflation in the coming years, which will help those of us who own financed real estate.
For the first time in a very long time U.S. housing might actually be a reasonable buy on a five-year view.
As a long-time housing bear and someone who believes there is still considerable pain to come in the U.S. economy and banking system that is quite a hard thing to say.
However historically cheap long-term fixed-rate financing (less than 5 percent on a 30-year mortgage) and the prospect of some nasty inflation a year or two out, both courtesy of current Federal Reserve and government policies, make owning a real asset that is debt financed a lot more attractive than would have been the case just three or six months ago.
You can read the whole article here.
[Found via Paul Kedrosky]