Posted by Bill Taylor on October 12, 2005 at 22:46:46:
I guess all we can do is go out and make the best deals we can and hope it never ends from that point.
Is there an end? - Posted by Tom H
Posted by Tom H on October 12, 2005 at 20:39:39:
Its CAP rate madness?. prices are out of sight for property. Is there any end to this in the near term? Anyone have any thoughts?
Re: Is there an end? - Posted by George
Posted by George on October 13, 2005 at 18:51:29:
My opinion is that its all related to interest rates. I don’t buy the conventional wisdom here that real estate is local. We’ve seen unprecedented low interest rates and easy credit in the past couple of years. The result is a real estate bubble, both in commercial and housing. When interest rates rise, real estate prices will fall, and it won’t matter what part of the country you live in.
Look Elsewhere - Posted by Jimmy
Posted by Jimmy on October 13, 2005 at 07:49:35:
cap rates, schmap rates.
-
get away fro the coasts, and look at the great expanse of country in between. I happen to like East Texas, where resale values are low and rents are excellent (in comparison).
-
Create your own equity/Bump Your Return. Buy neglected properties and add the value yourself. Then rent them out. The opportunities here are endless.