Now that the government has taken over, is it safe to invest in real estate again?
Answers
2547 points
Oldman answered 2 months ago …
If you want to buy a piece of property, that's one thing, but if you are looking at REITs, you need to be careful...the only section of the REIT universe that hasn't taken a deep discount are the HealthCare REIts, such as HRP, HCP, etc., and there's no assurance that the election won't spur further cost cutting at senior housing or retirement group living sectors.
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3090 points
EthanR answered 2 months ago …
It's always safe to buy real estate....if you have a long term horizon. As for the short term, could you be more specific as to which sector of real estate you are looking at? Are you thinking about buying a home to live in? Investment property? Real Estate homebuilder stocks? Real Estate Investment Trusts (REIT)?
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2641 points
MNSL answered 2 months ago …
There are so many problems to address in this sector worldwide I do not think even we well get market for the real estate at lest for the next 05 years. Situation is so precarious.
I think both lenders and borrowers should take responsibility for the property collapse. They were so irresponsible and because of this, many people lost their entire savings through out the world. Some instruments have become worthless now.
Property collapse is in initial stage in many countries. In some countries, there will be dramatic fall in property prices in the coming years.
Easy Money supply is virtually dead. That means it is not that easy to lend and borrow money for property market now. More than that sentiment is very weak. There is a no market to sell property now. In some case, it will take at least 10 years to recover in this sector. Most lenders have become
bankrupts Borrowers too have become bankrupt.
First of all, borrowers should not borrow money if they cannot mange their business and invest properly. Banks should have controlled money lending in advance. Both groups should take responsibility for destroying poor savors money
Now banks are promoting credit card and insurance instruments in a rapid race through out the world. Actually some investments of top insuracne companies are perfroming very poorly and some have frozen thier funds including property related funds now.
I think we will have credit bubble and insurance bubble as well in the future if we do not implement proper controlling systems
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