[quote=peterb]Basic economics should be more respected here and I think this is why our country is in such trouble. From Wall Street to main street.
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Rationalizing the reasons and logic is all well and fine…it’s a home, rents will cover PITI, prices cant get too much lower, etc… Are all just that, rationalizations not logical analysis.
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Funny, I always thought that basing a decision on fundamentals (such as rents relative to price and income) was logical and following basic economics.
One should not assume that because property in Temecula has depreciated by 40% over the past three years, that that trend will continue indefinitely. Basing a decision on anticipated future direction, rather than comparison to rent and one’s income is exactly what got us into this mess.
