You're assuming the buyer is the same as yourself. Think outside of the box. The buyer completed his due diligence and made the investment for whatever reason. I'm sure there are many reasons beyond what we see.
I am sure, ;-) Even dumb people who hopelessly overpay do so for a reason. They think it is a good reason, the majority thinks otherwise. That is basically the definition of "dumb". As stated, unless one has insider information of why the fair value should be way above previous market values it makes zero sense to overpay.
you keep on repeating yourself. And you are still incorrect. Buffet makes the same assumption. And with all due respect I would rather mimic Buffet than mimic you.
obviously one single buyer does not necessarily constitute a top in the markets, except by coincidence.
Yep over immigration has something good coming out of it .. at least for time being poor will benefit. Over immigration as there is no way that US is growing at that pace other than importing about 4-5 million people every year in various forms, which is more than 1% of US population. Good for Democrats!!
How are the poor benefiting from 3500 a month avg rents in the bay area? How are they benefiting from having to commute 3 hours each way because they can't afford to live in a taco stand in a side alley in some shit forsaken neighborhood? "Where do they teach you to talk like this? In some Panama City "Sailor wanna hump-hump" bar, or is it getaway day and your last shot at his whiskey? Sell crazy someplace else, we're all stocked up here." Jack Nicholson
it is about fair value vs market perception. And Buffet is a role model when it comes to being patient to wait for the right spread between the two.
Agree. But let's remember its a multi-faceted problem. * It is not just some foreigners (mostly Chinese) who are bidding up prices in many global metros, * it is also corporate mismanagement to locate workplaces inside city centers when there really is no need for that (there are of course exceptions where sales people need to visit clients on an almost daily basis, among others). Why would a developer/programmer have to commute into the city? For what reason? Why is a developer shop located inside the city? Makes zero sense. * Then it is also higher income earners themselves who bid up property prices, it is basically the problem I outlined in earlier posts, which is that people lost a solid understanding of fair value and rather than being patient and waiting for prices to come down they jump on anything that moves as if the dollars burn holes into their pockets. * It is also poor city planning, especially in the United States where public transportation has been completely neglected forever. How can it be that only 4 single train lines service the entire Bay Area (2010 census: over 7 million people)? Something has gone completely wrong.