Raab - When I was talking about land, to me that is all property that does not include your own home. To be viable it has to produce at least 5% rate of return in cash annually. So I agree, raw farmland, unless you bought it a long time ago or it has significant oil, gravel or mineral lease revenue, will have trouble doing that. When I said land I was thinking more in terms of residential and commercial rental properties. Land is still going up quite rapidly and rents are rising to reflect its higher value as well as the higher running costs and interest rates. Doesn't take too many properties to make for a very comfortable retirement living off the rents.
Bdub - I agree the Bond market thinks something broke. I am not convinced they are right that long rates should be anywhere near as low as they think because that implies significant rate easing 2 years out. I really don't see short rates being lower in 2025. However, like I have often said, I don't own a crystal ball so 50-50 chance I am wrong. All I know is I will be far better off with Blue Chip div stocks yielding 4-6 a year in dividends or rental real estate with a 5% cap rate now and holding through 2025, than I would be buying 2 to 3 year maturity 5% Bonds or GICs, or 4% ten to twenty year bonds.
We shall see who turns out to be correct.
