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Is it just me or does this chart have an ominous look about it?
This post inspired from the comments of this post.
I read that rental REITs keep pace with inflation because rents track inflation. I'm not sure if it is true or just something that makes theoretical sense - jeff
Source Data:
St. Louis Fed: Custom Chart
2 comments:
Your assertion regarding hyperinflation is correct, though. Housing comes after consumables and suffers accordingly, and history demonstrates that.
TJandTheBear,
I don't think many understand that it is possible to actually have negative real rental income if economic conditions deteriorate enough. All it takes is ongoing property taxes and maintenance costs combined with unemployed tenants. Sigh.
Let's hope worst case scenarios don't become the norm.
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