When we started to scale our apartment business in the mid to late 1990s our location decisions were based on investing in cities that would be highly appealing to knowledge-based workers. It was starting to become clear that economic growth would be driven by technological innovation deployed widely throughout U.S.
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There was a time when most people thought that you could never go wrong buying well-located real estate for the long term. This faith was definitely destroyed by the collapse of the housing bubble. Even with this experience, my guess is that most people would not assume that Beverly Hills real estate would be worth less than what it cost to build 46 years later.
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Gary Carmell
Posted in Advice, Apartments, Economy, Manufacturing, News, Trends, Uncategorized, Wealth
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Income inequality has many economic and societal impacts. When more wealth is concentrated in fewer hands, this can negatively impact aggregate demand as a large percentage of marginal dollars earned are saved versus spent. And since one person’s spending is another person’s income, a growing pool of savings will lower aggregate demand unless one or more sectors of the economy spend more than it earns as output will go unsold and have to be marked down for it to clear.
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With the tax overhaul now being law, I wanted to do a granular analysis of what the changes mean for those who own and those who rent in a high tax, high-cost state (California) and one residing in a low cost, low tax state (Texas).
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Gary Carmell
Posted in Apartments, Economy, Housing, Investing, Manufacturing, News
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[2018 UPDATE ] The Dallas Fed released its Texas Manufacturing Outlook Survey, January 29, 2018. The data was collected Jan. 16–24, and 97 Texas manufacturers responded to the survey. As you can see the business indicators in Texas remain strong as following chart shows:
Note the highlighted section showing that every indicator is “increasing”.
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It is notoriously difficult to separate the signal from the noise when it comes to investing. What information is truly meaningful enough to take action that can lead to making money or avoiding loss versus useless information that leads to decisions which bluff us in or out and lead to lost opportunity or losing money?
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“Facts are stubborn things, but statistics are pliable.”
~ Mark Twain
Balanced Investing – Home Ownership and My Fascination with Logarithms
It was a pretty busy week so this one will be rather quick. For some reason, I was intrigued by logarithms growing up.
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I typically wouldn’t discuss Tax Reform until it has passed since it would usually be speculative, I am making an exception given that many of the parameters are known and because of its potential impact on housing. The basis of the plan was to cut the corporate tax rate first and then work around the constraints that Senate rules and supposed deficit hawks impose on the process.
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Gary Carmell
Posted in Apartments, Economy, Interest Rates, Investing, Stock History, Wealth
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As 2015 opens, like many of you, there are numerous questions I am pondering.
2015 Questions I’m Pondering
Oil
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Gary Carmell
Posted in Apartments, Economy, Housing, News, Trends, Uncategorized, Wealth
1 Comment ↓
“I write because I don’t know what I think until I read what I say.”
― Flannery O’Connor
This blog post is pretty much just for me as insurance is not a very exciting topic but has great importance to all property owners,
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