Yeah I see a lot of lucky bastards who got in on low priced southern California real estate 10 years ago when it was cheap. They now own expensive estates in Malibu and Rancho Santa Fe. My boss is one of these guys. When he tells me to buy, I cringe and feel like telling him “Gee, why would I want to spend 700k on some crappy place and then have it lose 200k in value 5 years from now? Will you give me a 200k loan to cover the loss in real estate value if I buy this hovel today?”
That and I work in the computer IT field and layoffs, downsizing and outsourcing of jobs to India and China happen constantly. No job is secure anymore and I cannot afford a 6k monthly mortgage if I lose my job tomorrow. Yes, taxes suck but I only pay 550 a month to rent a room near work and do tax strategies on investments until the real estate market corrects itself in 5 years.
