In article ,
Hatunen wrote:
On 8 Oct 2004 08:07:20 -0700, (Raymond
Yeung) wrote:

There's a misconception the very few houses cost half to one
million. But the property might. As I used to tell people in Palo
Alto, no, youdidn't pay $600,000 for this house; you paid about
$120,000 for the house and about $480,000 for the ground it's
sitting on. That's why people are so willing to buy a really cute
house and lot for $500,000 and then tear the house down and build
a new one.


Okay, I suppose that's the good news. If the house is totaled, it'd
cost about $120,000 to rebuild? And I suppose such a devastating
event would have little impact to subsequent resale value of the
property? I'd suppose people might be hesitant in buying a land upon
which a house had previously been shaken down.

After the flood in palo Alto I saw no sign of a drop in property
values.



Property values did dip temporarily after the Northridge earthquake and
savvy buyers took advantage of that. The next time an earthquake hits an
area and property values drop (mostly as fearful people flee the area and
sell for a loss) I will be buying as much as I can. The property values
rebounded within a couple of year.


Dimitri