[PerryChase]

Ash, we now have plenty of government intervention in the form of zoning laws that dictates what developers can or cannot build. If we could resist nimbyism, view protections and such, then we could have affordable housing for everyone.

[PerryChase]

Yes, the keyword is cheap.

We need comfortable (but not luxury) 2bd/2bt condos for $100k. That’s what our economy needs. Families can then spend money on other things and not be stressed out making the mortgage/rent payments. If we really care about our society’s well being, we’d work to lower the cost of housing (in terms of % of income spent).

I think that we should encourage density. People who want to live in SFR can still do so but they’ll pay more. That’s only fair because it costs a lot more to service SFRs in terms of trash, sewer, electrical, cable, phone, police, etc… SFR developers should be required to pay for the cost of extending services to the suburbs. (I live in an SFR in the suburb so it’s a not a question of McMansion envy)

[PerryChase]

Yes, the keyword is cheap.

We need comfortable (but not luxury) 2bd/2bt condos for $100k. That’s what our economy needs. Families can then spend money on other things and not be stressed out making the mortgage/rent payments. If we really care about our society’s well being, we’d work to lower the cost of housing (in terms of % of income spent).

I think that we should encourage density. People who want to live in SFR can still do so but they’ll pay more. That’s only fair because it costs a lot more to service SFRs in terms of trash, sewer, electrical, cable, phone, police, etc… SFR developers should be required to pay for the cost of extending services to the suburbs. (I live in an SFR in the suburb so it’s a not a question of McMansion envy)

[PerryChase]

Good watch with breakfast. Thanks for posting.

I feel that the most important point that Thornberg made is that we need more apartments in Southern California. That will solve the housing crisis.

We need to get the REITs in here and give them the incentives to build quality low-rent apartment complexes for the service workers and lower-paid workforce.

[PerryChase]

Good watch with breakfast. Thanks for posting.

I feel that the most important point that Thornberg made is that we need more apartments in Southern California. That will solve the housing crisis.

We need to get the REITs in here and give them the incentives to build quality low-rent apartment complexes for the service workers and lower-paid workforce.

[PerryChase]

Good post, bugs.

One thing to keep in mind about “premium” homes is that they often have several hundred thousand dollars worth of upgrades, improvements and landscaping.

Here’s a related post from BMIT
http://bubbletracking.blogspot.com/2007/05/part-i-mega-white-elephants-of-crosby.html

[PerryChase]

Good post, bugs.

One thing to keep in mind about “premium” homes is that they often have several hundred thousand dollars worth of upgrades, improvements and landscaping.

Here’s a related post from BMIT
http://bubbletracking.blogspot.com/2007/05/part-i-mega-white-elephants-of-crosby.html

[PerryChase]

There’s video on Bakersfield.

http://www.kget.com/news/local/story.aspx?content_id=49f70807-fe57-4167-8fd4-124a43b02eb2

[PerryChase]

There’s video on Bakersfield.

http://www.kget.com/news/local/story.aspx?content_id=49f70807-fe57-4167-8fd4-124a43b02eb2

[PerryChase]

I’ve been looking at the Hillcrest/Bankers Hills/Mission Hills/Downtown for my relatives. I think that it’s a good area for retiree as well as young people living in condos. There are restaurants and stores, and the park nearby so there’re minimal driving requirements. Plus the population mix is interesting so it won’t be boring.

Bankers Hills near Balboa Park is way overpriced, more so than Downtown in my view. The plan is to turn that whole 5th ave corridor to “condo row” so there’ll be plenty of buying opportunity if have a longer time frame.

With the oversupply, Downtown will crash first with the other areas to follow. There are few new condos in Hillcrest so if you want a place that’s crisp, clean and new, then Atlas is worth waiting for. I would wait to pickup a resale unit at the trough. I think that Atlas is being built in slow motion as the developer is hoping for a market comeback.

If you’re still paying your CC debts, then you’d be wise to pay them off first, then save for a down-payment before you even buy anything. Prices will be going down slowly over years so you have plenty of time.

[PerryChase]

I’ve been looking at the Hillcrest/Bankers Hills/Mission Hills/Downtown for my relatives. I think that it’s a good area for retiree as well as young people living in condos. There are restaurants and stores, and the park nearby so there’re minimal driving requirements. Plus the population mix is interesting so it won’t be boring.

Bankers Hills near Balboa Park is way overpriced, more so than Downtown in my view. The plan is to turn that whole 5th ave corridor to “condo row” so there’ll be plenty of buying opportunity if have a longer time frame.

With the oversupply, Downtown will crash first with the other areas to follow. There are few new condos in Hillcrest so if you want a place that’s crisp, clean and new, then Atlas is worth waiting for. I would wait to pickup a resale unit at the trough. I think that Atlas is being built in slow motion as the developer is hoping for a market comeback.

If you’re still paying your CC debts, then you’d be wise to pay them off first, then save for a down-payment before you even buy anything. Prices will be going down slowly over years so you have plenty of time.

[PerryChase]

I’m with 4plexowner on this. Risk taking and hard-work in order to improve one’s life is one thing. But buying overpriced properties with the sense of entitlement that one “deserves” the profit is plain stupid. It’s like buying a house in Temecula for $800k expecting it to increase to $1 million in a couple of years. That’s asking for trouble. Plenty of people have been living in that lala land. It’s time for a correction so that the real hard-work is rewarded.

Nothing wrong with refurbishing a house and reselling it for profit. But you have to add value and create a product that buyers want. The real work is not in the upgrade (anyone can do that) but finding the right house at the right price at the right time.

[PerryChase]

I’m with 4plexowner on this. Risk taking and hard-work in order to improve one’s life is one thing. But buying overpriced properties with the sense of entitlement that one “deserves” the profit is plain stupid. It’s like buying a house in Temecula for $800k expecting it to increase to $1 million in a couple of years. That’s asking for trouble. Plenty of people have been living in that lala land. It’s time for a correction so that the real hard-work is rewarded.

Nothing wrong with refurbishing a house and reselling it for profit. But you have to add value and create a product that buyers want. The real work is not in the upgrade (anyone can do that) but finding the right house at the right price at the right time.

[PerryChase]

sdrealtor, you have point there.

4plexowner, I agree with you that speculators is a better word to describe these people.

You have a point also, Rustico. But the real issue is the hubris on the part of “investors” — a hubris that permeated a big section of society. What happens to all the “investors” when the market crashes? These people serve as an illustration of what will happen to many more folks — folks who don’t have the net-worth to weather a protracted downturn.

On the issue of psychology, it’s obvious that this family hasn’t really learned their lesson. Somehow, they still believe you can make $100,000 without batting and eye — not with their loosing housing but with other properties. In my mind, the market will not improve until the common people stop thinking that real estate is the easy road to riches.

[PerryChase]

sdrealtor, you have point there.

4plexowner, I agree with you that speculators is a better word to describe these people.

You have a point also, Rustico. But the real issue is the hubris on the part of “investors” — a hubris that permeated a big section of society. What happens to all the “investors” when the market crashes? These people serve as an illustration of what will happen to many more folks — folks who don’t have the net-worth to weather a protracted downturn.

On the issue of psychology, it’s obvious that this family hasn’t really learned their lesson. Somehow, they still believe you can make $100,000 without batting and eye — not with their loosing housing but with other properties. In my mind, the market will not improve until the common people stop thinking that real estate is the easy road to riches.

[Author]

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