[quote=CA renter]The Chinese family who bought with cash can accept a 3% return, and that might be just fine for as long as all other investments, especially “risk-free” bonds, are yielding practically nothing. But how long would they be willing and able to hang on if 10-year US Treasuries are yielding 6% or 7%, or more? And what if rents go down at the same time, and they’ve had a few bad apples as tenants? What would you do?[/quote]
When’s the last time you see US Treasuries yielding 6-7% while rent went down? If Treasuries yields 6-7%, what kind of appreciation do you expect from housing?
