Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (4713)	8/27/2002 2:00:30 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 306849

just a small point...no one "needs" to buy a house... you "need" a place to live. so...what would be your preference pay $73,800 (20% down) on the $369K hovel in "desirable w. la" and live there...with an $1800/mo. payment?? us.jaguar.com OR pay cash for a Jag, rent a nice apt. for $1200 (and no car payment!!!! woo hoo!)?? us.jaguar.com

To: Tradelite who wrote (4713)	8/27/2002 2:12:42 PM
From: fatty	Read Replies (2) \| Respond to of 306849

>Do you ever think you will look at a piece of real estate and think it's cheap, or even reasonable? If prices go down, will you think you're getting real estate "on sale" at a bargain price? Sure, when I first brought my 3-family house in 1984, it was cheap because my monthly mortgage was $900 or roughly 50% of the household income. When I brought my 2-family house in 1992 in a better neighborhood, it was cheap because the mortage was $1200 or roughly 40% of the household income. Now, my 2-family house won't fetch a cheap price because if I were to buy it again, I'd have to use 80% of my household income for the mortgage, not to mention 3 years of after-tax income for down payment. People need to realize when they buy a piece of real estate, the real variable is in the land, not the house. We know exactly how much it cost to build a house. It is the land that takes up much of the cost. We also know that cities and towns around the country also making more buildable lands available. There isn't shortage problem here. What has been driving up the real estate prices is simply the domino-effect of a minority number of people's fancy for a tiny selection of desirable locations. But this is irrational because location A being desirable shouldn't make location B just as desirable. It is as laughable as a man thinking that since foxy cleopetra is such a hot babe, then the girl next door should be 80% as foxy since she also has legs and bottoms.