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bsrsharma
ParticipantAs of now, that kind of transaction is about a week in the past. Other than via time travel, it seems improbable.
ParticipantAs of now, that kind of transaction is about a week in the past. Other than via time travel, it seems improbable.
ParticipantRecessions are like going on diet for the economy. It squeezes out the waste and makes the overall economy more productive and efficient. Without it, all economy would be like Detroit – slowly inching towards certain demise. For example, in the coming recession, huge number of realtors, homebuilders, mortgage workers, appraisers, home improvement workers, contractors etc., may all lose their jobs. Individually, this is very painful for them, but when they start doing something else, that adds to the economy. Meanwhile, removal of all that unnecessary labor will reduce transaction costs for homes.
ParticipantRecessions are like going on diet for the economy. It squeezes out the waste and makes the overall economy more productive and efficient. Without it, all economy would be like Detroit – slowly inching towards certain demise. For example, in the coming recession, huge number of realtors, homebuilders, mortgage workers, appraisers, home improvement workers, contractors etc., may all lose their jobs. Individually, this is very painful for them, but when they start doing something else, that adds to the economy. Meanwhile, removal of all that unnecessary labor will reduce transaction costs for homes.
Participantthinktwice,
I think you are mixing up two different markets – Rental & purchase. They don’t have to act in unison. Because purchase price is very high right now, a lot of sensible people (who can very well afford to buy) are renting. That puts pressure on rental supplies causing increases. Especially true in inelastic markets like Del Mar where a lot more than just $ and cents are involved in living. Somewhere I read that if one is concerned about money they are probably not in RSF; probably applies to Del Mar too! (Like some store somewhere in Las Vegas (?), no price tag on the antiques. If one has to see price tag, it is not for him!)
Where I am living here, many listed homes haven’t moved in 7 months; prices are dropping but my rent increased. I am gladly paying it since it is a fraction of ownership cost and I am certain the real purchase price will drop after the Big Bang is over.
Participantthinktwice,
I think you are mixing up two different markets – Rental & purchase. They don’t have to act in unison. Because purchase price is very high right now, a lot of sensible people (who can very well afford to buy) are renting. That puts pressure on rental supplies causing increases. Especially true in inelastic markets like Del Mar where a lot more than just $ and cents are involved in living. Somewhere I read that if one is concerned about money they are probably not in RSF; probably applies to Del Mar too! (Like some store somewhere in Las Vegas (?), no price tag on the antiques. If one has to see price tag, it is not for him!)
Where I am living here, many listed homes haven’t moved in 7 months; prices are dropping but my rent increased. I am gladly paying it since it is a fraction of ownership cost and I am certain the real purchase price will drop after the Big Bang is over.
August 4, 2007 at 12:35 PM in reply to: August 17, 1981 HOUSING BOOM GOES BUST IN LOS ANGELES #70259ParticipantOne Muggle,
The “Rich” are smart in capital preservation. They (I mean their investment advisors) can sense when the market has bottomed out vis a vis the start of hyperinflation cycle and shelter their wealth. US RE may not be that attractive, price wise, at present, but it has some good features like title security (someone, private or public, can’t just steal or nationalize as in Russia/Venezuela/South Africa etc.), US is a very livable place and has good legal & financial system, at least compared to many other “attractive” investment venues.
August 4, 2007 at 12:35 PM in reply to: August 17, 1981 HOUSING BOOM GOES BUST IN LOS ANGELES #70336ParticipantOne Muggle,
The “Rich” are smart in capital preservation. They (I mean their investment advisors) can sense when the market has bottomed out vis a vis the start of hyperinflation cycle and shelter their wealth. US RE may not be that attractive, price wise, at present, but it has some good features like title security (someone, private or public, can’t just steal or nationalize as in Russia/Venezuela/South Africa etc.), US is a very livable place and has good legal & financial system, at least compared to many other “attractive” investment venues.
August 4, 2007 at 11:37 AM in reply to: August 17, 1981 HOUSING BOOM GOES BUST IN LOS ANGELES #70239ParticipantThere is a difference. 1970s were a period of hyperinflation in US (due in part to Vietnam war & energy crisis). Compared to that, recent bubble is easy money driven speculation. After the coming bust, there may be another hyperinflation driven bubble as $ devalues and US assets become cheap for foreigners. Also, the rich will like to shelter their wealth in real estate.
August 4, 2007 at 11:37 AM in reply to: August 17, 1981 HOUSING BOOM GOES BUST IN LOS ANGELES #70316ParticipantThere is a difference. 1970s were a period of hyperinflation in US (due in part to Vietnam war & energy crisis). Compared to that, recent bubble is easy money driven speculation. After the coming bust, there may be another hyperinflation driven bubble as $ devalues and US assets become cheap for foreigners. Also, the rich will like to shelter their wealth in real estate.
Participant“6% returns with no risk”
What is that, Can you please explain? I am not finding easy current accounts returning 6%.
Participant“6% returns with no risk”
What is that, Can you please explain? I am not finding easy current accounts returning 6%.
ParticipantWhy does he pick Inland Empire for “plowing over”. If anything, it should be Atlanta, Miami, Detroit and Chicago that need to be “plowed under” per his suggestion.
Other 3 look familiar, but Atlanta at the core of Armageddon sounds surprising. Any explanations?
City/Metro, State Inventory (as of 7/30/07)
Atlanta, Georgia 120170
Miami, Florida 112333
Detroit, Michigan 74658
Chicago, Illinois 71206
Riverside, California 52384
Houston, Texas 48277
Phoenix, Arizona 47223
Tampa, Florida 46451
Los Angeles, California 43676
Dallas, Texas 43421
Washington, DC 40022
Orlando, Florida 33973
Denver, Colorado 29100
Las Vegas, Nevada 28462
Minneapolis – St. Paul, 25961
Cape Coral, Florida 25308
Cleveland, Ohio 23661
Jacksonville, Florida 22102
San Diego, California 21301ParticipantWhy does he pick Inland Empire for “plowing over”. If anything, it should be Atlanta, Miami, Detroit and Chicago that need to be “plowed under” per his suggestion.
Other 3 look familiar, but Atlanta at the core of Armageddon sounds surprising. Any explanations?
City/Metro, State Inventory (as of 7/30/07)
Atlanta, Georgia 120170
Miami, Florida 112333
Detroit, Michigan 74658
Chicago, Illinois 71206
Riverside, California 52384
Houston, Texas 48277
Phoenix, Arizona 47223
Tampa, Florida 46451
Los Angeles, California 43676
Dallas, Texas 43421
Washington, DC 40022
Orlando, Florida 33973
Denver, Colorado 29100
Las Vegas, Nevada 28462
Minneapolis – St. Paul, 25961
Cape Coral, Florida 25308
Cleveland, Ohio 23661
Jacksonville, Florida 22102
San Diego, California 21301 -
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