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

To: JakeStraw who wrote (27728)	3/3/2005 4:59:30 PM
From: RealityNotFantasy	Respond to of 306849

Positives & Negatives of RE... You wrote: >>High Cost of Living diminishes Quality of Life. You probably better rethink that statement... Remember, there's a good reason why certain areas have a "high cost of living". IMHO... First of all, my comments are not based on an opinion because I have some monetary interest in the outcome. Its simply reality, nothing more. Actually, I may have something lose if RE values go down. It was my experience to grow up in California... Initially, people moved to California because of the weather, the lifestyle, etc. so the cost of living went up as more people moved in. Is this what you're talking about, no? It was a great place to live up to the point when real estate became too expensive (1980s), then people, companies, jobs moved out. Having personally experienced the 1990s in Calif with RE values implosion & jobs leaving was not a pleasant one for many, inc. me. I knew a lady in San Diego who owed more on her townhouse than what she could sell it for but couldn't afford to keep it either; she cried her eyes out telling me that story... The new Calif. real estate boom (2000s) imho appears that it could make people, companies & jobs move out once again. I had some friends who recently moved out of Calif. to Oklahoma. Do we want that to happen in Minnesota or any other part of the country? That's why I'm voicing my opinion. I don't want others to suffer as how Californians did during the 1990s. I'm voicing my opinion to make people think... What can we do to mitigate the risk? Are we willing to tolerate the downside risks as long as the upside is dream-like & wonderful? Yes, there should be appreciation but the appreciation the past few years has been nuts,imho. The past couple of days I've read that 25% of RE buyers last year were investors! How are they going to keep those properties when there may not be enough buyers or renters down the road? I'm seeing some similar symptoms/trends occurring in Minnesota NOW that I experienced in California in the 1990s, though NOT precisely. Of course, its not just happening here but in many metros across the country...some, not ALL. The problem here is that people don't think real estate can deflate in Minnesota. Then again, the problem in California back then (1990s) is that we (inc. myself) didn't believe RE could EVER deflate either. Boy, did I get a humungous reality check back then! People are the same/similar in most places I guess...dreams, expectations, et al. Perhaps, Minnesotan RE expectations are not out of whack when it comes to human nature after all ;) Positive thinking has its place BUT it should be rooted in reality. I think we'll have to wait and see what happens down the road. It appears hind sight is always easier to prove than fore sight... I can't predit the future; I just look at the trends and the possible outcomes compared to what I've personally experienced and that has taught me lessons... Perhaps it won't happen here but my past experience has taught me to be cautious & prepared otherwise. Yet, I try to think, "Hope for the best but prepare for the worst". Others can do what they think is best for themselves. I'm learning to take this with a grain of salt too ... :) Just my two cents...