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

To: Lizzie Tudor who wrote (135993)	7/23/2008 9:38:09 PM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 306849

A 700K place might rent for $3400 is my guess- but just last month you said: a $800K-$900K house rents for maybe $2400. In fact most 3br/2ba houses which can sell for anywhere from 500K-$1mm in the "burbs" part of santa clara valley (this would be parts of san jose, city of santa clara, etc - NOT palo alto)- pretty much all rent for between $2K-$2500/mo Message 24657180 re: My place rents for 200x mortgage. Thats perfectly reasonable i didn't ask what rent was as a multiple of your mortgage. that figure doesn't really mean anything unless you say what the down payment was, what the mortgage terms are, and what repair costs are. i asked what rent was as a percentage of the purchase price and repair costs. And we were in a deflationary climate for 20 years that is reversing. we haven't had a "deflationary climate" since the Great Depression. through the 80s, 90s, and early 00s we were in a disinflationary environment. Yes mortgage rates are rising... due to inflation. no, mortgage rates are rising due to the financial crisis. 10yr UST barely has a 4-handle, so interest rates do not reflect inflation at all. real wage growth is not negative here, Wyatt and you know it. i have no idea what real wage growth is in your particular zip code. i certainly don't "know" it is not negative. however, real wage growth is very weak to negative for the country as a whole. re: engineering wage inflation, don't worry, it won't be a problem for long. the recession will eventually hit the Ponzitech sector very hard and lots of engineers will lose their jobs and be willing to work for half-wages or less, just like after the 2000 tech bust.