[quote=gzz]Flu, the 2/2 for 550k would yield about 28k a year after HOA, ins and property tax, 5.1% yield on purchase price. That beats treasuries and CDs.
The condo’s rent will also go up with inflation. If you want that feature in a treasury, you’ll get a lower TIPS rate.
So not a bad deal for an investor IMO.[/quote]
So people might be buying even with the possiblity that housing will depreciate, simply because they are diversifying away from higher risk speculation and trying to lock in some gains into something more tangible and predictable.
For instance (and I don’t have data for this), quite possible folks that did do well gambling in bitcoin and crypto sold partly to get out and bought something in the physical world that is more tangible.
I think sdrealtor mentioned he ran into someone that moved out of his hood into a $3million+ house from his cypto trades he cashed in on. Probably laughing all the way to the crypto bank now.
