ringledman
Registered User
- Messages
- 620
I agree with you about rental yields having reduced way too low during the boom years, but do you have some facts to backup your 8-10% bottom mark?I don't know what the commercial property yield in the US is but I believe they bottomed at a crazy 2-4% in Ireland and around 4% in the UK. The market has crashed some 30-60% to date, rising yields to around the 5-7% mark or so (rough calculations here!).
In my opinion 5-7% does not represent a market bottom. Property markets bottom around the 8-10% mark. So if this is correct we still do have another downturn to come.
Agree, inflation is going to be a big problem for all market sectors.Perhaps inflation will come back (more so in US & UK than Eurozone) and raise rents which will stop the large nominal crash from occuring. Who knows, but commercial and residential markets are two to avoid IMO.
Generally agree with Asia, but not Germany. Home owner ship in Germany is extremely low when compared to UK, Ireland, US, which means very low demand. This has stayed unchanged regardless of the rate of economic growth.The only exception I would make are Asian property as well as perhaps Germany which has done nothing for a couple of decades (the value investor in me!).
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?