whats the relationship ? -ve ? i get confused when in ss11 they mention something in passing about debt financed RE.
Debt financed RE do poorly during decreaseed inflation period…is this what you are asking for?
interest rates down, real estate up. Atleast that is what I understood from the real estate bubble over the past few years.
^LOL
Won’t increasing interest rate increase the pv of your debt reducing value of debt financed property?
ws Wrote: ------------------------------------------------------- > Debt financed RE do poorly during decreaseed > inflation period…is this what you are asking > for? yes, int rates down RE up. but when financed with debt, what happens to the relathionship. can u pls explain. does it decrease in value bec you are locked in paying a higher rate on your loan than the current market rate ?