Misconceptions of real estate

There are a lot of real estate statements that are being bandied about that do “tend” to be true, but like newtonian physics, those statements tend to break down in extreme circumstances.

“Housing always goes up.” – Yes, this tends to be true, BUT the caveat is that you have to own it for at least 10 years. As we can see, living in a house for a couple of years does not guarantee that the house will fetch its original price.

“They’re not making any more land.” – Another true statement, HOWEVER money tends to travel in the direction of easiest resistance. Alex made the statement that there is no land left in coastal San Diego and to a certain degree he is correct. There is only small minor in-fill development left there at best. However, coastal San Diego has an escape valve through inland San Diego and then on to Riverside. So while it is true that coastal San Diego will probably hold its value well as compared to other parts of San Diego, that does not make it immune to lowering housing prices. Still, I will say that the amount of capital required to even build a shack in coastal San Diego is so high and it is so difficult to build there that it might as well be left to the extreme rich. Processing through the coast commission is an exercise in the inefficiency of government.

Lastly…

“Everyone wants to live here.” – An employer I know just received an application from Washington state and we were both puzzled because the job he applied for is a pretty low paying albeit skilled job. There are others also I’ve seen who have been moving in here and I am sure there are lots of others who are leaving. Still, San Diego is a good place to live but in extreme circumstances (like the high cost of living) this “everyone wants to live here” statement tends to break down.

Anyways, my two cents worth. I don’t take offense to a lot of people saying these statements and most everyone of us shouldn’t but we should at least note that in extreme circumstances, simplistic rules and statements can break down and be wrong. It helps to know the reasoning behind those statements.

Misconceptions of real estate

There are a lot of real estate statements that are being bandied about that do “tend” to be true, but like newtonian physics, those statements tend to break down in extreme circumstances.

“Housing always goes up.” – Yes, this tends to be true, BUT the caveat is that you have to own it for at least 10 years. As we can see, living in a house for a couple of years does not guarantee that the house will fetch its original price.

“They’re not making any more land.” – Another true statement, HOWEVER money tends to travel in the direction of easiest resistance. Alex made the statement that there is no land left in coastal San Diego and to a certain degree he is correct. There is only small minor in-fill development left there at best. However, coastal San Diego has an escape valve through inland San Diego and then on to Riverside. So while it is true that coastal San Diego will probably hold its value well as compared to other parts of San Diego, that does not make it immune to lowering housing prices. Still, I will say that the amount of capital required to even build a shack in coastal San Diego is so high and it is so difficult to build there that it might as well be left to the extreme rich. Processing through the coast commission is an exercise in the inefficiency of government.

Lastly…

“Everyone wants to live here.” – An employer I know just received an application from Washington state and we were both puzzled because the job he applied for is a pretty low paying albeit skilled job. There are others also I’ve seen who have been moving in here and I am sure there are lots of others who are leaving. Still, San Diego is a good place to live but in extreme circumstances (like the high cost of living) this “everyone wants to live here” statement tends to break down.

Anyways, my two cents worth. I don’t take offense to a lot of people saying these statements and most everyone of us shouldn’t but we should at least note that in extreme circumstances, simplistic rules and statements can break down and be wrong. It helps to know the reasoning behind those statements.

surveyor, I think your sarcasm meter is broken :-).

FSD,

The problem is you’re a logical person dealing with someone who just likes to troll and make mindless comments to solicit a reaction.

AA is clueless. I vote we all stop repllying to his posts. Maybe I’ll start a post on that.

FSD,

The problem is you’re a logical person dealing with someone who just likes to troll and make mindless comments to solicit a reaction.

AA is clueless. I vote we all stop repllying to his posts. Maybe I’ll start a post on that.

Alex_angel is delusional when he says that everybody wants to live in San Diego. I’m originally from South Carolina but I moved to San Diego and lived there for thirty years. I saw the crash coming and sold my home in the spring of 2005 and moved back to SC. Now, I love SD and will move back if prices drop as much as I think they will. I can tell you that 99% of the people that I have come in contact with since moving back here would never consider living anywhere in CA. I used to encounter this same mindset from people I would talk with when I would travel on business around the USA for 30 years. Sure, many of them will vacation in SoCal but live there? No way! So Alex, unless you’ve talked to an entirely different group of people that I encountered over a 30+ year period in most of the USA, I’d have to say that my data is much more correct than yours.

BTW: Ask any San Diegan if they would live in New York City, Tennessee or South Carolina (or many other cities or states) and the answer would likely be………NO WAY! So, it cuts both ways.