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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (24733)	1/15/2005 11:49:05 AM
From: SOROS	Read Replies (1) \| Respond to of 110194

But what about the "hot" areas all over the country? Are there not many, many areas that are growing in populations by leaps and bounds and have projections to keep growing for many, many years? There seem to be many people buying multiple homes in these areas and renting them out. They do not seem to be having ANY trouble renting them because the area has such an inflow of new residents. What will stop this? I know interest rates can put a damper at a certain level, but it seems Greenspasm is hell-bent on fighting that battle for as long as possible. I suspect he will eventually lose since the low dollar does not seem to be correcting the out of balance problems, but could this real estate speculation in "hot" areas not go on for years? I remain, SOROS

To: russwinter who wrote (24733)	1/15/2005 2:30:00 PM
From: Roads End	Read Replies (1) \| Respond to of 110194

Vera left us quite a legacy didn't she? When those abatements expire and the yupsters buying those condos start having kids they are gong to find out being spitting distance to a Starbucks at each corner of the compass really isn't all that important.

To: russwinter who wrote (24733)	1/15/2005 5:08:18 PM
From: John Vosilla	Respond to of 110194

<Then when they finish, the buildings get sold out, and stand half empty as these folks already own a home (or two) and who is going to pay $1500 mo (less than 2.5 cap rate) to live in $400k condos (the cheap "rental" ones), as the vacancy rate on rentals in PDX is 10%, and the job market rather poor? Besides just about everybody who can afford $1500 a mo already has a condo (or two?). > 2.5% cap rate is probably on the optimistic side. I bet at least a $1000 of the montly rent gets eaten away between real estate taxes, HOA dues and vacancy loss. And that is assuming there is anyone left who can afford to rent year round at that price point. Sounds like today's version of the completion of the Empire State Building in 1931 at the beginning of the great depression and was subsequentlly nicknamed the "Empty State Building" by the late 30's.