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

To: ahhaha who wrote (47712)	12/20/2005 2:02:23 AM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

Commercial RE crashed last time out. We were selling stuff by 1993 at 30 cents on the dollar pretty regularly. On the residential side was more localized CA,Boston and NYC. Condos down here in Florida collapsed 40%. Oil patch cracked first and hardest and many in Houston still think property will never go up again As to cap rates it is easy to go to any neighborhood in the US today and see what the rents are compared to current prices. I see very low single digits in the bubble markets most talked about. In FL which is not as bad as CA, I see $300k+ condos rent for $1200/month before HOA dues, RE taxes, insurance, misc repairs,vacancy and credit loss.. CA with prop 13 you have $550-650k homes that rent for far less than $2k/month..