IMHO the real estate price explosion around here is part
of a speculative bubble, because even in spite of the
record foreclosure rates here lately prices are still

well, apparently reality hasnt cought up with people yet. it will.

skyrocketing. I had hoped that the bubble would burst
when the economy tanked three years ago, so that lower
prices combined with low interest rates would finally
give me the ability to buy a home, but now I see rates
going back up, and prices not budging a nickel. I don't

they will. itll take a couple % APR to cool things off, but they WILL
cool off. but then youll be stuck with a higher APR.

know what to do about that. This reminds me of the deal
in Amsterdam back in the 1600s when speculation drove
the prices of tulips up to astronomical levels. A single
tulip would cost more than a house. People would buy
tulips on the hopes that they would go up in price and
they could sell for a large profit. Sound familiar?

thats even stupider, because you cant live in a tulip bulb. just like
you cant live in a diamond, or eat gold.

i did the math when i was looking, and even a crappy 1br apt. was
running $800/mo a couple years ago. i ended up getting a 2br/2ba condo
in a quiet gated complex in a crappy part of town. my payment and HOA
fees are way less than rent would be on a similar place. property tax
ends up being about what my tax refunds are now. before, i was lucky to
get $300/yr back.

i would have rather had a house, but they were selling for twice what i
could afford just for a fixer upper.

condo life isnt for quirky, eccentric, or free-spirited people but i
dont have to worry about outside maintenance, fire or earthquake
insurance, since thats covered by the HOA. and those fees can go up-
theyve gone up $20/mo in the past 2 years.

JazzMan