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

To: John Vosilla who wrote (36252)	7/26/2005 5:48:19 AM
From: shades	Read Replies (1) \| Respond to of 306849

The wealthy have too much tied up into real estate to let the whole country go down no? the 1031 rules allow you to move from bubble over valued area to undervalued area tax free leaving the poor individual holding the bubble bag no? If they allowed a national collapse then how does the rich Vosilla who sees a peak in real estate in south florida 1031 into other areas not about to fall from bubble popping? If it was going down everywhere, I would not hear about so many wealthy using 1031 - instead they would just be dumping no and paying the tax man? I talked to several richies in west palm who have exchanged overpriced houses into ranches in fly over country that have cows and farmland - why would they do this??

To: John Vosilla who wrote (36252)	7/26/2005 7:39:15 AM
From: Mike Johnston	Read Replies (2) \| Respond to of 306849

But can housing be considered the driver in a place like Boston with little new construction or Atlanta with little appreciation but tons of new construction? In some areas the local economy is driven by construction, in others appreciation, just not to the same degree where both are factors. You are correct about Phoenix, Vegas and Orlando with respect to buildable land and demand from foreigners and people from the Northeast. However, even if the demand is temporarily insatiable, it will eventually be met, it just takes some time to bring new buildable land on line. That is why prices will always be high in Palm Beach or Martha's Vineyard. But if demand was there what is there to prevent developers from putting up, let's say 1 million condo units in Miami ? Only time. I think the biggest restriction in Nevada and Arizona will be availability of water.