Friend of mine has a friend who is really excited, she bought a house which had gone up to about 900K in 2005 for 640K. Current sales prices in her neighborhood were 740K. Has no intention of living there…. She bought it for an investment! It’s a neighborhood in La Costa – older homes – can get about 2,800/ month rental.
I’m figuring that she will be negative by $2,500 / month on this ‘investment’. I guess she hopes that she will sell it for a million next year (after the bubble stuff goes away!)…
There are still suckers out there… There are still folks who can’t do math but can sign their name!
