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

To: CalculatedRisk who wrote (60173)	8/18/2006 11:04:34 AM
From: Ramsey Su	Read Replies (3) \| Respond to of 306849

in the long run, it is actually very expensive to live in areas with no appreciation. e.g. say you graduated from U of Michigan 30 years ago and: 1. you decided to stay in Michigan and bought a house for $10k. 2. you decided to move to San Diego and bought a house $20k. now you are ready to retire. The house in Michigan appreciated from $10k to $400k. The house in San Diego appreciated from $20k to over $1m. Whatever you saved in housing expenses can no way match the opportunity cost in the mean time. The dumbest move is for people who already have a house in prime areas and decided to move to non-prime locations because it is "cheaper". They will never be able to move back. Having said that, I am very glad that people live in the midwest. We are already too crowded here. <gggggg>