X-Message-Number: 20657 From: Date: Thu, 19 Dec 2002 10:27:42 EST Subject: Re: CryoNet #20640 Real Estate --part1_1a6.df9f643.2b333f6e_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit From John de Rivaz: > . I really would advise against investing in real > estate right at the moment -- it is at the top of a boom cycle. > > There are particular problems with real estate investment if you buy > properties directly. > If you don"t want "problems", use REIT (US), SCI (France),... You can buy by small parts and sell the same way. There is no boom burst, only boom slow down: Assume you buy a flat and rent it. you get what you think is a fair return on investment. If there was a crash similar to the stock market, your capital would go down by 3/4. Your rent return on capital would have a interest rate x4. Anybody with a dime would invest here and nobody would sell. So that price is not realistic. Such a burst is impossible. A real estate burst is limited to something as 10- 15 percent loss. Something you can evaporate on the stock market in less than a week. Y. B. --part1_1a6.df9f643.2b333f6e_boundary Content-Type: text/html; charset="US-ASCII" [ AUTOMATICALLY SKIPPING HTML ENCODING! ] Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=20657