Real Estate A Wealth Destroyer
Do you agree with me. REAL ESTATE WOULD PROVE TO BE A GREAT WEALTH DESTROYER/ EQUALISER. If one is watching the real estate prices over the last 20-25 years, by any stretch of imagination what one is experiencing in the last 5-6 years have been unexplainable in normal asset pricing theory. These mean an asset which deviates hugely from the normal trajectory in a very short period of time, would me an that it is likely to head into a bubble zone or already is in one. Normally, out of the three basic uses of real estate a) agriculture b) residential c) commercial, agriculture would more or less remain in a fair trajectory mode. The two major areas where speculation sets in are residential and commercial. If one has understood basic economics the same theory of demand and supply works. But it is speculation that creeps in somewhere which pushes the pricing into the bubble zone. It seems that this is in play now. When there is more of cash available it will flow towards ...