-
@ Jake Woodhouse
2025-03-12 09:57:17
When you see people paying crazy real estate prices, remember, they're doing it with leverage
So yes, should the asset increase in price a little, the improvement in return-on-capital-employed can look appealing
But remember: they also have all the liabilities eg the shower breaks, the roof leaks, the tenant doesn't pay, or the council increases taxes...
Ultimately, they don't really own it, but rather they're carrying the downside of a bunch of stakeholders
RE investors beware!