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

To: Rutgers who wrote (21985)	7/6/2004 5:14:56 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 306849

Location, location, location. --- Indeed. But location relative to what? New York is located close to high crime, bad weather, and any number of undesirable factors. The answer is as simple as "location relative to where buyers with money want to buy". This is based on economics, cultural whims, and even mistaken assumptions. Although this has a remarkable self-perpetuating aspect, as group-think is an endemic human quality, it can change dramatically. Those who argue that real estate price is based on regulatory costs or non-specific scarcity don't have a leg to stand on. Yes, regulatory costs are higher in Manhattan than they are in Los Angeles. But anyone who attempts to determine how much regulatory costs increase land prices in New York will fail, because these factors are not linked - even though they both apply to the same parcels of land.