The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Elroy Jetson who wrote (87081)	8/26/2007 7:22:04 AM
From: SouthFloridaGuy	Read Replies (4) of 306849

Friend of mine is a mid-level Investment Banker in LA. She just bought a 2/2.5 (teens floor, in NYC that's mid-floor, but I have forgotten how high the buildings are in So-Cal) luxury condo with a view in the Wilshire Corridor in the 8's ($1,000/mo HOA). 20% down, 5 year I/O. Don't be thrown off by the I/O it makes sense for people in finance due to the boom/bust nature of bonuses and the ability to pay down principal in big chunks. The argument is that it will retain its value based on view and location. The price was negotiated slightly, but not a lot. Other apartments in the vicinity with view are in the mid 1's apparently. I feel that regardless of "affordability" (this person made at least 6 last year, but once again boom/bust) the purchase was stupid given the state of the markets and the fact that the credit crunch just started. Am I missing something here? I don't know the L.A. market well. If one had a gun to one's head to buy, is that the area and type of property to do it in? Would like an objective view point. I know in NYC, I wouldn't really touch anything (esp. with looming job losses) regardless of location because that's been priced in already.

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