David
I agree SV has a bright future. But again, real estate is a commodity just like any other (well almost -- the biggest difference is that real estate acqusition is funded almost exclusively by borrowed capital). SV real estate will go down in value; maybe not the kind of drop we saw in Texas, but it will happen.
The key to real estate is Location, Location, Location
I agree about this. But you must keep in mind, that Dallas, Texas was considered in the early 80s to possess some of the best real estate in the country. The economy was very strong, a lot of good things were happening. But then the oil bust in Houston followed by the S&L crisis in Dallas, and suddenly real estate that had been "worth" $60k was bringing 15.
Anyway, I must say, realty continues to make a good investment -- particularly, your principal residence, where you get good appreciation, tax deductible interest, and you would have been out of pocket for living expenses either way. |
