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ParticipantWhich bring us all back to rent vs buy and income vs buy. If income goes up and rent goes up, we wouldn’t be calling this market a bubble since 500k house would be fundamentally supported. Wages double in 20 years. Rent probably doubled too, but housing price went up 4X.
ParticipantIf you truly love your home like car guys love our cars, then there’s absolutely no difference, except the fact is it’s a much bigger cost of entry. It’s like buying an Enzo. Aren’t we all comparing buying vs renting? So buying a car or a house is the same and leasing a car is similar to renting a house. If you keep the car for more than 2-3 years, it’s cheaper to buy than lease. If you buy a house, in 2-3 years, you’ll spend a lot more if you bought than rent. We all need a car just like we all need a shelter. We all can live in a 2 bedroom condo/apartment just like we all can drive around Civic.
So for those who say rich people don’t flaunt, I say, everybody flaunt. If they don’t, they’d be living in a small condo or small house in the middle of nowhere and donate all their money to charity already. The fact is, everyone have a hobble and certain things in life bring them joy, regardless of the $ cost. So if houses bring you joy then, great. For other cars bring them joy. Not everybody buy cars to flaunt. For a car guy, we all wouldn’t mind buying a $10k Toyota if it can handle like a Porsche and look as good as a Ferrari.
ParticipantI wasn’t debating on whether .com causes the RE bubble. I was just saying engineers do not get paid as much as you think they do. In regards to the .com causing the RE bubble, I think it does. Not because of the “high” engineering wages, but because a lot $ were made in the market w/ .com stocks. That’s much more substantial than engineering wages. That money got put into RE when .com start crashing. That’s what I think cause the start of this bubble and easy $ carry the rest of the way, just like you said.
ParticipantI know many people in defense contracting, between 0-5 yrs experience and I know they start @ 50k. I work for 3 different telecom companies in SD and their salary are quite similar. I know 10yr+ experience engineer getting around 110-130k. Just look at salary.com, their range is very true to real life. So again, to make 100k, you need at least 7-10 yrs experience. You can’t really compare the peak of the .com bubble with current wages, it just doesn’t work.
ParticipantI’m a software engineer and I highly doubt you can get into the low six figures with less than 7-10 years of experience. New grad right now are looking at around 50-55k. So I don’t think there are a lot of low six figure engineer around. Like previous poster, even w/ 2 engineers making 200-250k/year total, They still can barely afford a 600k house. If new grad in 1985 made around $30k/year, at 3% salary increase every year due to inflation, then it would be about $56k/year right now. So engineer salary hasn’t change very much if at all, after adjusting for inflation.
ParticipantThere was an article awhile ago on I think CNN about this topic. Bottom line is, wealthy guys don’t care about flaunting their money, so if they’re car guys, they’ll buy cars, if they’re not, they don’t. Just look at Bill Gates and his 37 cars garage and Jay Leno with a much more impressive collection. A car to some is just a mode of transportation while to others, it’s a mode of enjoyment. I personally would eat rice and soy sauce everyday and drive a fun/nice car than eat out everyday and drive a Civic. Different strokes for different folks.
ParticipantThat’s a big unknown. No one knows when they’ll be back. It could be several years from now. By then, it might be cheaper to buy than rent, who knows. That and all the condos high rises in downtown and condo conversion sitting empty right now should be more than enough to accommodate the troops.
Participantrseiser, I agree that it will not be easy. I will keep on trying to perfect my timing and knowing that I will fail many times. But I’m hoping I’ll succeed more than fail.
Participantmalfred, there’s absolutely nothing wrong with playing safe. Not everyone is ready or able to do the calculation behind the calculated risk that you’re referring to.
Participantrseiser, I don’t see what’s wrong with follow the crowd and take advantage of the sheeple created bubble. As long as you know it’s a bubble and get ready to sell at the first sign of weakness.
ParticipantI think it’s a lot easier to talk the talk than walk the walk. Especially for guys who are single and just graduated. My #1 advice is take full advantage of the power of compound interest. Max out your 401k and ROTH IRA asap. The money you don’t see won’t be missed. You’ll adjust your spending habit around the $ you have from your paycheck in your checking account. That’s what I’ve been doing since my first full time job @ 22 and through 1st person point of view, I have to say that it works.
ParticipantI would like to know as well. Maybe we can make its thread a central point where people can post what they know about incentive with new developments. Here’s what I know:
Airoso – Carmel Valley
Last year, price range between 550k-601k
This year, there’s incentive on their cheapest (plan 2) @ $499k. My fiance’s coworker just bought a plan 2 for $465k after some negotiation. I inquire about it and they denied that the sale ever taken place.ParticipantPlease post link. I haven’t seen it.
Participantrocketman, I’m with you on this one. I don’t like to place a % on the decline, it can be as little as 10% and as much as 80% depend on the economic condition. If we have hyper inflation, we all will be making $200-$300k/yr and price will not fall at all. If we go into a great depression and wage drop even more, as well as rent, then 80% is not unrealistic. It can also be somewhere in between. We’ll never know how much it will fall until it’s over and done with.
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