Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Bill Clinton Scandal - SANITY CHECK -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (9658)	10/15/1998 4:35:00 PM
From: Charles Hughes	Read Replies (1) \| Respond to of 67261

>>> BA real estate prices Hard to say. Barrons said last year the BA was within a few % of topping, as I recall. Personally, I think this last peak is another bubble. People just can't pay 300-700 grand for quite ordinary houses, not most of them. These prices depend completely on total employment in the valley, and right now what we have is layoffs. Even if the economy comes back, house prices won't start to climb again overnight. If it doesn't, they are going to tank 15-25%. I'd wait. I know that's hard to do. But I have a number of friends that lost 100 grand each on houses they bought in the late eighties - early nineties, when they had to move to follow the jobs or had some other reason to take the loss. Back then the house buying climate was much like that now. Ironically, most of them bought again in the last couple of years. I guess those that bought two years ago are pretty safe, they have a nice cushion, but those who bought in the last 12 months are exposed. I had a couple of places that I sold two years ago, and so I missed the last 15% on the up side, but I'm happy. I've been waiting ever since. I'm a skeptic about real estate. The Seventies are long gone. Now it's just another cycle of boom and bust. Frankly, I don't think this particular BA market can go much of anywhere up from here. But you can absolutely wait for a tumble to buy, or for inflation to take its toll on real values, then do it. Meanwhile - bonds and cash. That's my place to hide now. And fight that house fever. If the money is burning a hole in your pocket, buy a nice big boat and live on it, take a cruise, buy a vacation home in the Sierras. Think about the country. 90 miles from SF, you can buy a huge house with a ranch for 200K. Better yet, move to Madison, Wisconsin. Join the other Californians re-gentrifying the Midwest. Software is booming there, lots of folks from the BA are moving there, and you can buy a cottage for the price of a Jag, a nice house for a California down payment. Or so it was last year. Cheers, Chaz