[quote=bearishgurl]I’m not trying to trash the area or bully Piggs who like TV as I know nothing about it. I’m just trying to find out why some Piggs are saying it’s a better investment to live in TV (or buying in TV will get them “further and faster down the road” to retirement) with all factors taken into consideration. [/quote]
I can address this one. I think the notion that house price appreciation is a road to retirement is an illusion. Yes, if you are very lucky, and you bought before an area’s economy starts to boom, then it migth be true, but it’s not true in most general cases. So the only roads to retirements are:
1. Have more income, which depends on your talent.
2. Have less expenses, which is controllable. Housing expense is the biggest expense item in most families. Therefore, by reducing that expense (including associated property taxes) through living in area like Temecula, you will have more savings for true investments. Businesses, stocks, bonds, rental properties…I don’t care. All these generate residue income and produce cashflow in the long term. It’s better than spending into a more expensive houses (which corresponds to a higher rental costs even if you can make it cash flow). Remember the goal is to reduce costs. I don’t understand how people who live in expensive neighborhood can claim that they are getting riches by having more equity in their houses. Again, unless you are very lucky that the house price in your town is going to appreciate much faster. The price you have to pay is going to be higher than its rental equivalent each month. And its rental equivalent is higher that low-cost areas, therefore so is your eventual shelter expenses. And that money can get better appreication elsewhere than equity in the house.
But, wait a minute, I assumed that the house price appreciated the same in all areas. If as realtors always say, location, location, location. Maybe better neighborhoods can get better price appreciation in the long run?? I agree with this possibility. Therefore, Temecula is a reasonable hedge against that scenario. It has OK to good schools, relatively wealthy population and more professionals that have a chance to move up in the corporate ladder in the future.
It can’t be a proven road to retirement (nothing concerning the future can be proved), but it is a good and educated guess.
