Investing 20K in the Dow in 1963 would now be worth $316,400. One of the rare cases a home investment beats the market. The bay area is INSANE. peace axeman
>if you are prepared to spend that kind of >money, you clearly have options--- Wee, Yes, we do have options and the one we like the best is right here in the Bay Area for the next few years. We do have plans quite like the ones you described a bit later, but right now we can't increase our combined net worth quite like we can here. JB
My parents bought ocean front in Del Mar in 1976 for 240K. Flipped it in 1982 for 800K. Today the same property is valued at 7.5 million. How about that.
The house we bid on yesterday was built in 1955 and sold new for 9K. It was the original owners who sold it yesterday for almost 900K JB
Well .... You might want to study some of the others regional US real estate markets. My conclusion was that I can make as much or more from a combination of investments in other regions that have stable or growing local economies. Its true that there is a lot of money in the bay area but there are other areas that are very attractive right now and IMHO entail less risk. By the way, this is the very first time in 25 years that I have reached a conclusion that the bay area is not going to enjoy the type of vigorous growth it has enjoyed since 1980 - I was a bull even through the 1991 problems when the sand hill road area had large empty commercial buildings ...... Be careful.
only when we get to the point where people can't sell the houses, do we know its overheated. so California, definitely isn't. Western Long Island, NY where i live, the bubble has definitely stopped, not burst but definitely stopped. Houses either stay for sale or have to decrease their price. People are bidding down, not up and sellers are not selling, hopeing that things turn around. New York City and Nassau (western), hasn't softened up at all. just suffolk (eastern long island). To some parts in the extreme east, the situation is worse. I don't call it a burst bubble until people's loans start going upside down. -mohammed osman
sorry, i meant to write that i live in eastern long island. suffolk county. not western. typo on my part
Amazing. But I am wondering what was a guy's annual earnings in 1955 with a similar social status of a guy who can buy a $900K house today?
at what point does living in a big house or area not become worth it? eventually we all have to pay the piper. if we spend all our time working to pay for our house, what's the point? why be the a slave to the bank? -M.O.