No. of Recommendations: 8
Any real return I have made in RE has been getting lucky catching episodic inflation over a short period in select highly desired markets.
I think the key is the 'highly desired market".
I live in a former logging town gone resort boom town. In the last 15 years the median price has gone from 200k to 800k, but the riverfront properties have doubled that gain, from 500k to 4 million. I'm surrounded by real estate multi-millionaires. When I point out that BRK has gone from 100k to 800k in the same time, they correctly point out that their investment also gave them a place to live and RE is the easiest of all investments to apply a bit of debt related leverage. I hope they recognize they were lucky, and that RE is not often that lucrative. When we talk about retirement, they lean toward RE investments, and are skeptical of stocks. It is hard to blame them.