This is somewhat anecdotal but applies directly to what your post said. My best friend is a real estate insider up here in Newport Beach. He is looking at 5 million dollar homes, and is a cash buyer.
He told me the following recently at one of our regular Flemings splurge dinners. Exact quote, “I know that 5 million bucks is not a big deal, but I just cannot get myself to fork that out for something I know is going to be worth 3 Mil 2 years from now. I am a real estate guy, and I just can’t get past this even though the money does not matter.”
Those I am sure are the exact words he used minus maybe a few words lost due to wine consumption!
So here is a guy in a rare financial echelon, that still is not buying at those levels. Just for the record, he makes about 7 million/year on average.
He owns his own commercial real estate brokerage firm just for the record. I will not state his name, as he would not want that type of thing made public.
