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Napanee, Ontario | This seems to be such a hard concept for many here to understand. Again, on that point I will copy from below:
just fyi - stocks are currently 18-21x
treasury bonds are currently 35-45x
5 year GIC is 1.29% or 77x
10 year GIC is 2% or 50x
multi-unit residential real estate is about 25-35x
And then prime farmland, say 300 ac rent ground, at 30-40x.
That prime Land is not going to sell for 5000 an acre, or 15x earnings, without interest rates rising and all these other asset classes being reduced also.
Interst rates are not going to rise unless they stop printing money. So basically the land crash scenario is really a bet on whether they stop printing money, in which case, land crashing will be the least of everyone's worries out of those list of assets.
Edited by OldMcdonald 4/15/2014 08:41
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Land Values and how to pay for it
