Low interest rates

[John Galt]

Hi Cut-Throat! I have "loved" real estate forever,
whereas my dalliances with common stocks convinced
me long ago of their fickle nature. Anyway, real estate
is a lover who never let me down. (there is a metaphor with personification cleverly included ). Any problems I have had with real estate
were strictly my fault.

John Galt

 

[RockMiner]

I'm not sure what you call a 'Melt Down', but if it's a depression style meltdown, most real estate depreciated to gut wrenching lows during the early 1930's also.

My main point was that no matter how depressed real estate values might become, one can still live in it or plant crops on it etc. It has intrinsic value, unlike a stock certificate which is just paper, or even cash for that matter. It isn't diversified, but then it's utility does not depend upon the whims of Mr. Market. This is a somewhat unique attribute. So, in a severe crash I could still be eating while you contemplate a ruined portfilio. I think it depends how you define risk.

 

[Hyperborea]

My main point was that no matter how depressed real estate values might become, one can still live in it or plant crops on it etc. It has intrinsic value, unlike a stock certificate which is just paper, or even cash for that matter.

Your "ownership" of that land is nothing more than a "piece of paper" too. Particularly in some of the "doomsday" scenarios that those advocating mason jars of gold coins are worrying about.

Look at the land issues in places like the Phillipines or Nicaragua under the right wing dictatorships they used to have (both sponsored by the US no less). Ownership of the land by "common people" was meaningless and anybody in the inner government circle or foreign companies (generally US companies) could have it for the asking.

Even in a more mundane "doomsday scenario" you're still going to be needing to pay those property taxes.

 

[ak4195]

Bravo JG,stick with what you know.Id have to say demographics are on your side,location location location is prime concern.but then with your experience Im sure you probably heard that when i was sneakin beers illegally.Everyone has a different risk tolerance.Ask any ENE,WCOM bag holders.I wonder, was this board in exhistence around 3/2000?How many are still holding paper stocks from the wonderfull downdraft years?Theres a piece of mind that comes with tangibles.Enjoy-ak

 

[brewer12345]

Hey brewer.............I don't care what equities will
"probably" do.  Not a bit.  Just taking the GMAC example,
unless they default (or call the bond) I get 7% in a
monthly check for 20 years.  Maybe we won't have inflation.  Maybe I'll be dead.  Maybe other
investments won't get close to 7% in the next 5 years.  Does not matter.  What
I want is a predictable cash flow EVERY month.
I wouldn't touch any publically traded common stock
with your ten foot pole either.  I can not understand why retired folks with a small pile still invest in common
stocks.  I do appreciate your
input.  We'll just have to agree to disagree.

John Galt

Fair enough. Good luck with your GMAC bonds.