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 (14150)	10/4/2003 2:54:00 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

History books show real estate holdings purchased before the Great Depression generally wiped out their owners. In many regions of the country, rents were less than property taxes. Even in the economically strongest areas, like Los Angeles, the Appraisal Institute indexes show rents declined 46% while home prices declined a whopping 68%. My newly married grandparents purchased a lovely home in the Hancock Park area of Los Angeles in 1932 for 90% less than the previous owner had paid in 1928. People who purchased gold before the Great Depression did well - that is until 1933 when FDR made gold ownership illegal. Those who purchased real estate at the bottom of the Great Depression did well if they could maintain the property tax payments. Speculators who purchased rental property prior to about 1938 usually wiped out unless they had very deep pockets. As might be expected, Tradelite spent his time during history class "Whistling Dixie" while others were tending to their studies.

To: Tradelite who wrote (14150)	10/4/2003 5:05:33 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

Excerpts from the "Whistlin' Dixie in Missouri" history text of the Great Depression..... ________ Tradelite's grandfather was married with three sons and lived in a humble but adequate single-family detached home on Main Street in a very small Missouri town. Owned his own house, two farms outside of town, and the only grocery store in town, which was located down the street from the family homestead. Grew some of the grocery store's inventory on the farmland. Operating overhead of the store was further reduced because he owned the building. This enabled him to put plenty of food on table for family, provide a few employment opportunities for the townfolk, and, occasionally, extend groceries on credit to his less-fortunate customers. Self-sufficiency is a wonderful thing. When Hurricane Isabel knocked out little Tradelite's power for three days and created temporary Depression-like conditions right in the middle of 21st-century suburban America, food that was about to spoil in the fridge was cooked on a charcoal grill in the driveway. Had Tradelite not owned the driveway, his landlord's lease probably would have prohibited such cookouts as a potential fire hazard. P.S.--Elroy, I'm starting to learn how to play you like a violin.