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

To: KENNETH DOAN who wrote (6099)	10/18/2002 2:28:27 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 306849

200k in 2000 in the bay area was kinda minimum wage there. There are not a lot of room for savings. The couple that you were talking about, IMO, they were over extended themselves without any exit point (that doesnot consider investing, but call gambling). Most of us lost but life still go on. We just might have to work a little bit longer for our retirement. I hate to sound disaffected but this same thing happened in the early 90s to the speculative-investor du jour (at that time)- the owner-builder. Real estate was going up 30%/year on 10% down, about the same risk reward as stocks were in 1999 or more. I remember in 1991 flying back from a bus trip and in the airport shuttle, the driver said he was a bankrupt owner-builder with a previous net worth of over 2 million (THEN). He looked to be about 45. My guess is he made the whole thing back in the next 9 years, and that is just staying in real estate, no stocks. I suspect there will be plenty of opportunites in the next 10 years for the broke silicon valley workers to make back at least a portion of their lost wealth, after all the internet is a pretty huge deal with a lot left to exploit. The issue is whether the 50 year olds have enough time on their hands, the 40 year olds will be fine imo. L