The unfortunate reality that is faced by people like me……
People tend to hold onto to their real estate holdings, lic policies etc… for decades (sometimes perpetually) but the same people can’t hold onto financial assets (equity, fixed income etc.) for similar tenors (whatever might be the reason)
Why is this?
As a Doctoral Professor in Finance asked me recently – should we mandate financial assets like equities, fixed income etc. to be made illiquid like real estate 😃 or fix a certain lock-in period?
???
All while the real estate might probably be delivering a far lesser growth or an income…
Absolutely fine if the same is delivering a decent return or income
In any case, if the illiquid nature of the asset is a negative trait to hold onto….shouldn’t it compensate the investor in some other way🤔 in what way? An asset which can be seen & felt ?
I hope to see a day when there isn’t parallel economy running real estate & gold markets here.
The day that parallel goes off, the real prices will show 😀