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ParticipantI would think the military have taken a carefully calculated gamble, and I believe he will be assigned a desk job. As far as I can work out, insurgents are throwing pretty much everything they can at everyone anyway. The fact that he threatened to resign his commission if he wasn’t allowed to go shows he doesn’t want to be treated as a “special” case, which will go in his favour. I would think as many of his fellow soldiers would be disgruntled had he been given special treatment, and not allowed to go. In spite of that, an army’s leaders … generals, politicians will always be targets, and Kings have always fought alongside their soldiers. What’s so different about a royal son?
ParticipantI don’t think people from Europe see soCal as an investment opportunity due to the weak dollar, because it still doesn’t offset the inflation appreciably. It’s too far for a holiday home, and immigration is not open to many people. They will tend to look to Florida (weather, beaches, distance etc), or for appreciation in developing markets (Eastern Europe). It can cost $000’s to fly a family backwards and forwards to CA whereas super cheap airline travel in Europe can cost a fraction of that.
ParticipantThat article no longer seems to be there except for the first page. Pity since it sound interesting.
ParticipantBe interesting to see what those figures look like updated to the present.
ParticipantMoney moves has become almost a truism. That rich Asians are investing in Real Estate in CA is nothing new. I remember before Hong Kong was handed back to China, there was a huge influx of money into London (and other places). People were buying off plan, like you buy a plane ticket online, and many were saying they were responsible for the house prices increases. Russians are amongst the richest in Europe now. London and Moscow are the second and third (respectively) most expensive cities in the world. Fortunes have been made in developing economies, and the rich want the trappings of the west, and in many instances the tax incentives provided.
If you are super rich, paying a high premium for a house is neither here nor there. If you are moderately rich I still think you’ve got to be nuts to buy anywhere at the moment. A tear down in Croatia can cost you $1m. Please, that’s fever not sense.
ParticipantMy question is. I always wondered where the Asian families get their money from because they seem to be the only ones buying now.
When I go out with my Asian wife and her family, talk is about money and little else. If you buy anything you will be grilled about how much you paid and invariably told where you could have bought it cheaper. Chinese supermarkets are huge, offer a huge variety, and are much cheaper. A party of eight can eat in a Chinese restaurant for the same price as two in your average posh nosh joint. Houses, cars and education are priorities, but I am often surprised at how frugally some homes are furnished. So in answer to the above question, one answer may lie in home economics, as much as it does in earnings. Taiwanese women are great with money and run very tight ships. There is a large sub economy that exists, that allows the Asian community both to be semi autonomous and frugal, thus enabling leverage in the economy as a whole.
ParticipantAlex-angel, I am married to an Asian and what you say resonates true. I rent from my brother-in-law, who is eternally optimistic about prices, and there does seem to be a bit of a blind spot when it comes to the subject of declining prices. I wonder, in addition to what you say, if that is also due to the fact that for many Asians, English is still the “second” language and they don’t therefore have full access to the news and what is happening. I know there are plenty of news Chinese TV programs, and newspapers, but it’s often places like Piggington’s which are one step ahead of the game.
ParticipantI doubt that these ‘foreigners’ are from Europe who look more to Florida for second homes because of the distance. The fact that US and European airlines have relaxed their stand off may entice a few long haul wonderers. I would also think that cash buyers may be put off by property tax. The chinese emphasis on education has ensured managerial postions in the work place, but that doesn’t make for cash buyers. There are rumours circulating that a Chinese (and Taiwanese) influx of cash rich individuals are keeping property prices up, but I think that is just heresay. What is more likely is that some foreigners are window shopping as a result of the weak dollar. Also, there are plenty of foreign speaking people here in LA, and some may be tempted by or curious about SD prices.
ParticipantCNN reports “…quid pro quos, poodles, honey trapped flies, and fat British sailors are having a profound impact on the San Diego housing market. A recent visit by Congresswoman Nancy Pelosi to La Jolla has sparked a heated debate over Real Estate national security. Each time a house went into foreclosure, Old Glory was placed on a map. However, many link the recent release of ARM hostages to her wily diplomacy. George Bush remarked that dissent within the ranks has always the been the real war …?
ParticipantBTW, now is a terrible time to buy in Hawaii. Although their market tends to lag behind mainland trends by a year or so, things appear to be shaking up a bit already. Hawaii is no stranger to housing bubbles.
Tell us more Kilohana about what’s happening in the housing market. Do you expect a drop in prices soon?
ParticipantI have been trying to follow the Hawaii market to see what prices are doing but it’s difficult to know. There are a few real estate websites I peruse every now and then:
http://honoluluadvertiser.gon.gannettonline.com/apps/pbcs.dll/section?Category=HOMES&pub=honoluluadvertiser
http://home.showmea.com/islandhomes/search.cfm
http://www.hicentral.com/properties/mls_statemap.asp
http://www.hawaiimlshomefinder.com/And then there is craigslist which has not very well attended chat forum.
I would have thought that a place like Hawaii would have a fairly high second home market and that this would be one of the first areas to be affected by a downturn. (It seems condos are already being affected). The Big Island appreantly still has bargains, but that is at price so to speak. Hawaii is also probably particularly sensitive to the economy as a whole, as it depends on tourism. Quite how that might impact on the local home market I don’t know, but if you are able to break through the usual hype, and find the truth let me know.
ParticipantI have never heard of Alt-A mortgages, but when you add these to the subprime market, it seems the exposure to dodgy loans is doubled. What puzzles me is that builders seems to use them a lot, but reports on the news say the Inland Empire (LA) has seem a recent improving housing market. I guess we will see if tightening credit and foreclosures really have downward pressure on prices over the predicted 6-12 months.
ParticipantThere are fixed rate mortgages in the UK, which have been around since the 1300’s, and US mortgage law is based on UK common law. ARM’s are no doubt a prominant feature in the UK mortgage landscape now, as real estate prices are silly-stupid.
In the 1990’s endowment mortgages were the buzz word whereby payments were apportioned to equity that was predicted to pay off the lump sum at the end of the term. Lenders soon found themselves in court for “misselling”, fending off disgruntled borrowers whose endowments were falling well short. Poor regulation was blamed then as it is now. Many got their fingers burnt both sides of the fence.
Rates in the UK and parts of Europe are as low as 3.5% to 4%. Bear in mind disposable income is lower than the US but property prices are very high, London being the second most expensive city in the world. To add insult to injury, many properties in the inner London area are lease-hold, so even when you have paid off your mortgage you still don’t own your home. To give you an idea, a small one bedroom lease-hold apartment in a fairly nice area of central London will set you back US$900,000.
Second home ownership has spiralled, and with most of the obvious markets (Spain, Portugal, France etc) having been exploited, the up-and-coming and new members (Croatia, Bulgaria, Romania) of the EU present opportunities for investment. The effect on all these places is to put pressure on prices, often forcing the local populace out, which understandably leaves a bitter taste. However, it is often the locals who are selling at these high prices.
The French, Italians, and even Germans have traditionally been renters, but many have now realised the potential of real estate. French farmers laugh at how much the English are willing to pay for a run down stone barn. But then, when they see that is has been beautifully restored and flipped for a huge gain, the proverbial Ooh La La! is followed by thoughtful head scrathing.
I agree that tinkering with interest rates to stimulate the economy is not really a conspiracy, but short-termism seems to be a by-product of democratic economic planning.
Participant“…LA guy searching realtor.com” [sdrealtor] is pretty close although I did go there and do some exploring. If there is any other website apart from Realtor.com please enlighten me???
It probably is Harmony Grove and Elfin Forest that I stumbled across and liked, but not knowing the area I wasn’t aware of these names. I did say in my original post that I wasn’t particulalry enamoured with the city of Escondido, so it is the outlying rural areas that appeal …views, large lots, privacy (no kids so schools not an issue).
Interesting is the comments that Harmony Grove and Elfin Forest are stigmatised with the Escondido label, making homes less attractive to sell. I’m trying to marry that up with the high price tags referred to????
“…you haven’t tried commuting on the 15 corridor.” [4plexowver]. No I haven’t and don’t need to commute anywhere, but I would imagine San Diego is 30-45 minutes away in quiet times???
As far as crime is concerned, it would concern me if it spills out into the outlying areas …burglaries etc, but living in LA, gang crime seems a pretty localised phenomenon, at least in my (limited) experience.
No stores would also be a concern, but presumably Escondido is well blessed with Albertsons etc.
I am a little surprised about it being hot there. Is it noticeably hotter than inland areas of LA???
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