Contrarian Value Ideas

[gfp927z]

Derf, >> triple net <<

Just curious if you are owning commercial properties, or residential, and is it directly or via pooled private equity, a REIT, etc? Thanks.

Like you, I'm not much into the maintenance and hassles of owning real estate, but I realize that as a 'hard asset', these properties will be one of the safer places to be when / if the US dollar gets into big trouble (ie 'Debt Bomb'). Around here (Phila suburbs), residential real estate is up around 50% in just a few years, which really means that the value of the US dollar has dropped tremendously in purchasing power. While inflation has cooled for now, what happens as the $35 trillion US debt continues on its rapid path to $45 and then $50 trillion? I'm thinking that real estate might be one of the only ways to maintain one's wealth.

Bonds certainly won't. Buffett said that bonds "are among the most dangerous of assets", and that "bonds should come with a warning label". He also noted that - “Over the past century these instruments (bonds) have destroyed the purchasing power of investors in many countries, even as these holders continued to receive timely payments of interest and principal.”

Anyway, just curious to get your take on the best ways to add real estate to one's holdings. Thanks :o)



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