CPP

[phoenix64]

Agree bucket, can't see this ending well. Seems that us fed is very likely to begin increasing interest rates 25 basis points per quarter starting in June. How does the land investor extract more rent from a tenant to match increasing rates in t-bills? Simple answer is they can't and will be forced to put the dirt on the market in the future, ah yes, history once again proves to repeat itself.

[iceman]

Justin bruch is now doing the land management for CPP. Are retirement is in good hands people! Lol.
The beginning of the end ghost riders!!

Out

[ajl]

There is a simple solution to this problem: stop printing money and allow interest rates to rise. Problem solved. Land is only a good investment during periods of loose monetary policy which has been the case for most of the last 40 yrs. The 1980's being the exception. The next decade or more of Japan style debt deflation will make land to be not as good of an investment as it has been. I saw a chart of Japanese commercial property in the Tokyo region and it has pretty much declined since 1990 (with a few blips along the way). Farmland will do the same under debt deflation.

[tmyrfield]

Young Guy wants to farm. Buys land now has to pay for it. Oh its capital, paid with after tax dollars. Self employed farmer gets to also contribute 9.9% to the VERY. SAME. CPP. THAT IS DIRECTLY COMPETING WITH HIM ON THAT LAND!