The crux of realty investing:
•Physical assets with perpetual existence and
stable capital values
•Recurring returns with stable cash flows
•Capital values over long time frame: growth with great ‘salvage’ value
•Rental behaviour is unique: Over long time frame, grows in line with inflation, economy an underlying capital value
•Asset diversification and less
correlation with other assets returns
•Assets can be adequately leveraged
The above is something of a synopsis. It takes far more time to explore nuances. In fact the power of real estate for use as a tool for 'inflation hedging' is phenomenal (this is often quoted by many, yet understood by a few). The way this entire 'inflation hedge' story unfolds over a long time-span, can be understood comprehensively from my book Real Estate investment and financial analysis (Topic 4.9.4 and page 74-75 in the print version). The numerical incorporates in its very core, the above positives of realty investing.
Want to know why I favour Indigrid Invit vis-a-vis the more popular IRB Invit? (why the former seems to be closer to the crux outlined above). Write to me at the email id given in the first page.
No comments:
Post a Comment