Keith wrote:

On Sun, 11 Jul 2004 19:35:53 +0000, SoCalMike wrote:


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.

In some locations, sure. In other more "desirable" locations, perhaps
not. You know, L-L-L.

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.

Certainly. TANSTAAFL.

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.

Indeed. However, unlike tulips and gold, they aren't making any more land
in desirable locations. This area, for some unknown reason is very
desirable. Since the greenies have pretty much put the kibosh on any
large-scale new development, I'm not too worried about the short term. In
a year or two, I may pack it in and move someplace cheaper. I cannot
afford the taxes after I retire.

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.

Getting money "back" on taxes is a very bad way to look at the world.
Look at what you *pay*, not what the thieves return of your *own* money!

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

I couldn't afffford a mansion on the coast next to Babs, either. One does
what one can. Renting is dumb, over the long term.

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.

I may move into a condo, then again I find it cheaper to buy the services
that a condo-association would "offer". Sure, I've had to pay for a new
roof, and have done quite a bit of maintenance myself, but overall I think
I'm better off. Perhaps I'll change my mond over the next few years.


JazzMan

You know, the standard sig-seperator is two dashes followed by a space.
Intelligent news readers strip the sig when replying. Try it, you may
like it!


Actually, the previous person that quoted my post mangled
it all up, I didn't write most of the above, only the part
about comparing the real estate speculation frenzy to the
tulip bulb speculation frenzy.

JazzMan (notice the two dashes below)
--
************************************************** ********
Please reply to jsavage"at"airmail.net.
Curse those darned bulk e-mailers!
************************************************** ********
"Rats and roaches live by competition under the laws of
supply and demand. It is the privilege of human beings to
live under the laws of justice and mercy." - Wendell Berry
************************************************** ********