“When I pull together the economic fundamentals, valuation and sentiment, real estate, as an investment, doesn’t look very attractive. The distribution of potential outcomes looks asymmetrical to me – limited upside and plenty of possible downside. But what really screams out at me is how many important factors are at extremes … bad extremes. One or two off-trend numbers can be explained away, but too many are jumping off the charts – price increases, mortgage rates, loan growth, consumer debt and home ownership levels.”
- Tom Bradley, President of Steadyhand Investment Funds, in an article ‘Real estate as an investment? Look elsewhere’, Globe and Mail, 16 Mar 2012. [hat-tip Derp]
The brief article is worth the read.
Most here will be familiar with all of the arguments.
A succinct, measured analysis. I like it because it has something of the “a Martian approaches the Canadian RE market” about it.
Needless to say, we agree strongly with his conclusions.