Tuesday, December 17, 2013
How do you think a man like me...?
1975. I feel old realizing there are readers who don't remember experiencing that era. The old Midas Muffler commercial was playing off the growing fear of inflation at the time. Make no mistake; it was fear. Not concern, not some modern investment strategy but the looming prospect of huddling in the dark eating Senior Vittles™. Things were bad. Volker was all but unknown. Watergate, Embargo, Carter rising. It scarred the national psyche.
Now look at the own to rent thrice in a lifetime opportunity seen in those graphs. Rising rentier income. Even better when you consider the lower interest rates. And it doesn't matter if the prices and the rents realign. You either get the rent or the appreciation or both. Nota bene: I said thrice. Once in the 70s before inflation. Once in the housing bust precipitated by the credit bust. And one last time perhaps...?