6/18 three years ago it was a stock bubble. now it's a property value
bubble. the day of reckoning will come.
\_ Bubble does not mean what you think it means.
\_ Bubble Bobble rocks!
\_ But Bubble Sort sucks.
\_ It's as simple as something that nobody knows.
\_ I don't think the phrase "does not mean what you think
it means" means what you think it means.
\_ Bubble does not mean "slightly inflated." Do you think
that housing prices are going to drop 90%? You are
a moron if you do.
\_ japan... late 80's... mumble mumble...
\_ yes, that was a bubble. Tokyo land prices fell by
80-90%. Do you think that is going to happen to
land prices in the US? In California? In San
Francisco? I do not.
\_ It doesn't have to pop that much. A drop of 20%
would be pretty catastrophic.
\_ Yeah that would suck. I'd be back to only about
$20k above what I paid 3 years ago....
\_ As an economy it's disasterous. What happens
you personally is less important.
\_ To *me* there's nothing more important. the
same is true of every other individual. it
is nice that there's at least one person out
there who cares more about this ephemeral
thing known as "the economy" more than his
own situation. I'm glad to know you.
\_ I'd rather have an okay job in a good
economy than slightly better one in a
poor economy. Less chance of my job being
cut, better chance of upgrading it.
\_ Okay, I'll bite. Why would it be catastrophic?
This happened in 1991 in California and it
wasn't exactly the end of the world.
\_ It just would be. It's the motd. You expect
him to back up his statements?
\_ The state is $38B in debt. Your city is cutting
services. Another 20% drop in prop taxes, more
services get cut. More fees go up, more taxes,
jobs leave overtaxed CA, you're stuck with a
suddenly overpriced house with no job.
\_ bubble is as bubble does.
\_ keep dreaming, renter.
\_ If it pops I'll still own a house and you will still be
renting.
\_ No, you'd be paying for a house that's worth less than your
loan. Negative equity. A Bad Thing.
\_ Short term effect. God is making more people. He isn't
making more land. In the long term no one has ever lost
money on real estate. In the mean time you're paying a
land lord and owning nothing. Even if the home price drops
a few percent below the buying price it is still financially
more sound than paying rent.
\_ Is God making more high paying jobs too? If you lose
your job at the same time your house drops a few percent,
you may end up in a bad spot. That said, I'm all for
buying a house if you can afford it. Just know the risks.
As in most things in life, it is not a sure deal.
\_ Anytime you lose your job you'll be in a bad spot. Will
your landlord stop asking for rent? At least with a
house there is a chance that you'll have equity and
maybe even own the place outright.
\_ Since my mortgage money has been going into a loan and
unlike a renter I actually *own* some part of the place
I live I have the option of drawing down against the
house so I won't be on the streets when times get hard.
As a renter with no job, I've got a pillow, an old
blanket and some rent receipts to get me through the
tough times. How does being a jobless and homeless
ex-renter sound compared to jobless home owner?
\_ More money saved up and able to move someplace where
there are more jobs without worrying about selling
my house. Portability is part of the appeal. |
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