SJ is the technology capitol of the world. While I do not rule out the possibility of 1/2 real estate values out here, it would only happen in the midst of a global economic meltdown .
David,
Respectfully, I must tell you how wrong you are<g>. It can happen anywhere. You have to remember, that in the mid-80s Texas was the "Oil Capital of The World" and no one thought it could happen. Anything that is market driven CAN AND WILL have its ups and downs, and business cycles are real.
Believe me, real estate values in SV can and WILL drop. The question is when. After that, the question is, "How Big is YOUR Mortgage"?. In the 80's I was telling clients to proceed with caution -- real estate is like any other market (my cpa practice is Texas was heavily real-estate oriented). They were say, "You're nuts. This is the Oil Capital of the World! Real Estate is a scarce resource. It can only go up!!! I just sold my house, made 80K in two years! You can't lose!!!". Now, I'm not suggesting values are about to drop in SV, but don't be fooled into thinking it won't happen, because it will.
All this is just my opinion, of course. I'm pleased you made 100k, but think twice before putting it all back into a house! BTW, new tax law (revisions to IRC section 1034) can help people in your situation -- be sure & check it out before you do much.....
David |
