Realty Bubble

By Ramesh Akkineni
The way banks are fighting with each other to give loans for housing sector and at such low rates, we can be sure that a bubble is forming. We will know more about it in the next decade or may be sooner. Buy real estate to use it, not as an investment which will grow without any relation to the rental rates. People think real estate prices always go up in the long term. They should look at some bubbles which happened in the past, like the one in Japan which burst about a decade back.

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