To me, this is a true representation of the investment, rather than simply looking at the cash flow in isolation or
speculating on the appreciation in the property value.
After a while, we had lots of subscribers who'd blindly order almost anything whenever we announced it - obviously collectors, maybe some people
speculating on appreciation of product value due to its scarcity.
You are
speculating on the appreciation and future rent.
I told him I never want buy by
speculating on appreciation.
Not exact matches
This is a big advantage of income properties — home buyers who buy cashflow negative properties with leverage and rely
on appreciation to generate returns (which is why a lot of investors consider this
speculating) can be devastated if the market takes a downturn, but properties that generate a nice cash flow every month aren't affected.
@Nick B. Actually in Plano so I can see an
appreciation play
on this one but I personally don't
speculate on my investments and only buy for cash flow.
It always strikes me as odd that everyone harps
on and
on about
speculating with negative cashflow, but don't blink an eye about
speculating in markets with sustained negative
appreciation.
The reason why large cities have so low cap rates, is that domestic and foreign investors mostly focus exclusively
on these overhyped cities and
speculate on endless
appreciation despite poor fundamentals, low yields and overpriced assets.
In expensive markets those wishing to invest already have money, to cover negative cash flow, and are primarily
speculating on abnormal
appreciation.
I'm not counting
on appreciation, but if I had to
speculate, I'd say these will be at $ 150 - $ 160 in another 8 months.