TSX:AX.PR.E - Post by User
Comment by
jmkOttawaon Oct 07, 2024 2:25pm
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Post# 36256527
RE:Pick your poison
RE:Pick your poison Booming economy with higher inflation will lead to higher property values in the long run. The replacement cost of the real estate increases with inflation and rents as well. Real estate is an hedge against inflation, generally speaking.
In the short term however, recession with decreasing interest rates will be a stimulus to REIT unit values, because of the reduced borrowing costs. As long as occupancy is maintained.