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/biz/ - Business & Finance


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54632045 No.54632045 [Reply] [Original]

I am in cash (about 200k) and am interested in making my first real estate investment. I'm interested in buying a multi-family unit in a college town nearby me. But I know to wait.

By the way, high interest rates are what kills real estate. Real estate cap rates in many geo-segments are below 5%. Why fuck with the risk of being caught as an RE baggie when you can just buy treasuries that yield over 4.5%? By the way, treasuries are considered by financial professionals to be the gold standard of securities.

Will this absolute mad lad do it?

>> No.54632088

What if the government does not raise the debt ceiling

>> No.54632110

>>54632088
This fud is already debunked.
>One cannot predict how Treasury will operate when the debt limit binds, given that this would be unprecedented.Treasury did have a contingency plan in place in 2011when the country faced a similar situation, and it seems likely that Treasury would follow the contours of that plan if the debt limit were to bind this year. Under the plan, there would be no default on Treasury securities. Treasury would continue to pay interest on those Treasury securities as it comes due. And, as securities mature, Treasury would pay that principal by auctioning new securities for the same amount (and thus not increasing the overall stock of debt held by the public). Treasury would delay payments for all other obligations until it had at least enough cash to pay a full day’s obligations. In other words, it will delay payments to agencies, contractors, Social Security beneficiaries, and Medicare providers rather than attempting to pick and choose which payments to make that are due on a given day.
https://www.brookings.edu/2023/01/25/how-worried-should-we-be-if-the-debt-ceiling-isnt-lifted/

>> No.54632985

>>54632110
>it will delay payments to agencies, contractors, Social Security beneficiaries, and Medicare providers
>fud
Anon...

>> No.54633009

>>54632985
Did you read it correctly? The treasury will continue to pay treasuries at the expense of not paying for other shit.

>> No.54633044

>>54633009
Yes, I guess it's fine if you're only a holder of treasuries and don't live in the USA.

>> No.54633067

>>54633044
Why does living outside the USA matter? All treasuries holders will be treated equally

>> No.54633103

>>54633067
Because the country you live in will be exploding in riots and civil war.
>even more so...

>> No.54633415

>>54633103
I will just leave. I have a permanent residence elsewhere