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Colony Capital chairman Tom Barrack says amateurs are playing in property investments, pouring money into the industry at high prices and betting on rent increases that may never come.
The billionaire says inexperienced real estate investors are in for a big shock if interest rates rise or demand in key markets plummets. “It looks a little bubblicious,” Tom tells Bloomberg. “We're printing money. More debt is available. But amateurs are playing in it.”
The head of the Los Angeles-based investment firm says tech trends are undermining traditional holdings like hotels, office buildings and residential properties. Tom even points to startups like Airbnb and WeWork, saying their businesses are threatening the models landlords have come to depend on. [Bloomberg]
