Nothing to add
I actually would like to add a few… if I may.
#1 Contractual income streams are of no benefit in an inflationary environment. Case in point, your contract is fixed for a 2 year period or longer while inflation could spark and price the contract out. By the time of renegotiation there are only losses. Not that this will happen in the US. Just bringing up the folly of the argument. Unless contracts are protected with some TIPS-like clause.
#2 Markets may recover but this doesn’t guarantee a trickle down to all segments of the economy. If dealing with rentals, there are many more variables to take into account.
#1 I would not say folly, I would say limits of the argument and they are not that bad. It is not perfect protection but is very good protection specially if you have good long term, low cost, fixed financing.
#2 agree, but I would say also that housing was the only massive bubble. Most other real asset sectors did not suffer massive overcapacity and are mostly in good shape if there is financing. Fundamentals look good beyond housing and marginal sectors (stripmalls next to mcmansions)
What is meant by an “all-in coupon”?
Interest + principal + financing expenses, the point is that financing is cheap.
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