Our MF bills have begun to trickle in. So far they look the same as they have looked since our first purchase in 1998. The typical increase is between 4% and 5%. While wages appear to remain flat TS management compaines continue to increase fee's as if there's an unlimited supply of money available from owners. It may take another decade but, things will have to change or there's likely to be a major issue with defaults.
What happens when defaults become a burden to owners has been discussed for years. If things don't change, we may actually begin to see the doomsday scenarios start playing out in the next 10 to 15 years. I believe it takes a little over 14 years for fee's to double at 5%. If wages begin to increase it might not be a major issue but, if wages remain flat for the next decade and MF's continue their historical rate increases, this won't bode well for TS management companies.
What happens when defaults become a burden to owners has been discussed for years. If things don't change, we may actually begin to see the doomsday scenarios start playing out in the next 10 to 15 years. I believe it takes a little over 14 years for fee's to double at 5%. If wages begin to increase it might not be a major issue but, if wages remain flat for the next decade and MF's continue their historical rate increases, this won't bode well for TS management companies.
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