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: J. P. who wrote (8872)	2/13/2003 7:48:46 PM
From: NOW	Read Replies (2) \| Respond to of 306849

JP: the assumption on interst rates holding the key to higher prices ignores the experience of Japan.

To: J. P. who wrote (8872)	2/13/2003 10:06:49 PM
From: David Jones	Respond to of 306849

....I just have to shake my head.... O ya, me too. I posted my last sale here some time ago. It just didn't pencil out for me to hold or expand that particular property. Sale price 348k, rent income 1700 at best. Add second unit up 1200 sq ft allowed. Another 1700 or so. Price to build is a point of disagreement here but 160 was quoted me the other day. Regardless it's allot in for the return I'm looking for. Usually I don't equate rents to price but I'm of the mind equity growth here in N Calif is near topped out. And am just fine with 'wait and see'.

To: J. P. who wrote (8872)	2/13/2003 10:20:22 PM
From: MSI	Read Replies (1) \| Respond to of 306849

I believe that as long as interest rates keep dropping or remain steady RE prices will continue to climb. It would seem it can't go too much further ... and yet today, the earthmoving contractor tells me after my job his next is for a dentist from Florida starting on a 10,000 ft home, w. 120' lap pool and outbuildings. The view from the property takes in a 30,000 ft home being built by a fellow who sold his tech biz two years ago. These folks obviously aren't building for resale, it won't pencil as any kind of profitable investment under almost any scenario. It's just a "safe" place to stash bucks that don't do much in equities or bonds. The eventual big winner from this equity inflation process -- when everyone has homes that are 2X what they were before -- will be gov't taxing authorities.