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I recall talking to a real estate guy as a recent high school graduate 25 years ago. He claimed real estate rates will stay above 7-10%. I countered that long term, real estate needs to remain tied to inflation or else all buyers will be priced out.

He is doing very well.

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Interest rates, or appreciation rates? They are different and I'm not sure which either of you are talking about.

Talking about investment returns.

Looks like you can both be right.

Classic ‘the market can be irrational longer than you can be solvent’ situation if I ever saw one.

In a situation of supply scarcity all the market needs to do to function is to sell this limited supply. And this does not require the median citizen to be able to afford this supply. Thus the market isn't even irrational.

All those tax cuts to the super rich have to go somewhere. Buying up property is one of them.

More so you need to generate the money that goes into stocks and other assets from somewhere. This seem to be done either by government debt or by debt against increasing home values...

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