Real Estate: The End is Nigh(-er)

Granted, the end has been nigh in real estate for at least as long as, say, Alan Abelson has been calling an equity market top over at Barron’s, but you have to be at least slightly dismayed at recent news from the property business. Leaving aside the headline that San Francisco real estate is still busily sky-rocketing, my favorite piece of “end is nigh” news comes from a Reuters story today.
There are apparently now companies that will buy real estate for people, you know, too busy to miss out:

One, Redbrick Partners, is buying up portfolios of single-family homes, renting them out, and packaging them in investment partnerships. Another, Signil Wealth Network, says it’s out there shopping for individual properties for investors who want to buy real estate but don’t have the time or inclination to do their own market research.

Gosh, if only there had been people whose job it was to prop up doomed dot-coms in the waning days of the tech boom. Oh wait, there were people like that: Analysts.


  1. Spec Madness! In our neighborhood in San Jose, two homes that are waaaay too big and expensive for our neighborhood (3x the value of next door neighbors at least) have been built at spec (built hoping someone would buy them). Just outrageous, and unfortunately for the builders/speculators I think they will eat it badly. Hint – it matters if the house next door is 1/4 the size and 1/4 the value. Another house in the hood just under 5 mil has been on the market forever. Another spec nightmare.

  2. I fully agree that real estate in many cases has become analagous to the days of old and those high-flying tech stocks. However, for the astute investor real estate is still a wonderful and logical vehicle for long-term wealth building. In markets where home values are still reasonable – real estate offers depreciation benefits, cash flow characteristics and low correlation with down-trends that are common in more publicized investment classes. I think this vehicle for the astute and active investor is still heads and tails above all others.