Word: rente
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Dates: during 2000-2009
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...trick of the real estate trade is price-rent ratio, sort of the property equivalent of a stock's price-earnings ratio. What it's saying lately is encouraging, though not downright bullish...
...Here's how it works: if the price of buying a house divided by the cost of renting an apartment is higher than usual, then houses are more expensive than they should be. A lower-than-normal ratio suggests good value. Changes in these data are of interest not just to potential buyers trying to figure out if it's time to finally jump off the sidelines but also to current homeowners wondering how much more pain they're due for, as well as to policymakers angling to prop up prices. At TIME's request, Moody's Economy.com ran numbers...
...first pass, the data suggest we've largely come back to earth. The average price-rent ratio for the 54 metro areas Economy.com broke out was 19.8 for the three months through September, a couple of points higher than the 15-year average of 17.7 but significantly lower than where the ratio stood three years ago, 24.4. By doing some additional math (which we'll explain later), we can surmise that house prices still have to drop 4.6% over the next five years, assuming the price-rent ratio returns to normal over that period. Funny how that almost doesn...
...theoretically - an admirable way to go: do not do anything solely for money, and do not covet material goods for their own sake...Money can't buy happiness, they say, but if sailing a boat makes you happy, you need to be able to buy, or at least rent, a boat...
...Then in September, Thompson cut his own salary 30% and slashed the rent the dealership pays him for the land he owns underneath the cars. "The sacrifice starts at the top," he said...