The California Effect
I am not picking on Californians, but stories like this are becoming pretty common. "The advantage to the buyer is that the buyer gets a wonderful appreciation, this market is going only up."
"In this kind of market, a house has to be an investment. So where does all the money come from? 'I have a lot of people coming from California, because their market is capping off.'"
Not that a lack of common sense had to be imported. "That market is a newfangled thing in this town, a phenomenon, and it's not going to stop."
"The house three down from us closed on March 1 at $1.06 million and they're listing it now for $1.9 million, that's $870,000 more than they paid for it, figuring the sign will sit there until the end of the year. I think they'll get close to that."
5 Comments:
Of course everyone is paying cash for these properties. Like Munger said: "Bad".
Another Tycoon in the making!
http://money.cnn.com/2005/04/28/real_estate/investment_prop/tycoon_theodoropoulos/index.htm
These people produce nothing for our society. You have to love this system.
In the Florida article, the salesweasel mentions that the money to buy these million$ homes must be coming from California cuz it's "topping out there."
Bullphlegm. I've lived in Calif all my life. I've never met one person who has considered moving to Florida from Calif. It just doesn't happen. Maybe some speculator money is shuffling around. But Californians don't move to Florida. Nevada, yes. Colorado, yes. Hawaii, yes. Arizona, yes. Mexico even, yes. But not Florida. Hey, we already have beaches and Disneyland.
The guy is delusional.
My agent is trying to tell me that the appreciation will make up for the costs to get in.
But I don't get it. We want a home to live in (we've owned for 10 years already but are looking to move). What good does appreciation do . . . except raise our taxes. Unless we sell, of course, and move far away.
9:31AM Anon,
Hi, there... please take no offense to this but your agent works on commission... he/she is just trying to move inventory...
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