Courtesy of Frederick Peters, President of Warburg Realty
Why buy real estate? If, as Michael Lewis suggests in “Boomerang”, the Greek government is just a big piñata at which every citizen had the right to a whack, and if Iceland is a land of fishermen turned failed hedge funders who blow up their cars at night for the insurance money, if the Irish built thousands of luxury homes for people who never even existed, much less had the wherewithal to buy them, and if there are no social services left in Vallejo, California because the tax base won’t support them, then why should anyone feel good about plunking down millions of dollars for a place anywhere in the world? If the U.S. debt is crippling the nation, and no one wants to pay higher taxes (though at least most of us do PAY taxes, which seems to put us ahead of an awful lot of Europeans!) what sense does it make to invest in the infrastructure of a financial system which is surely melting down?