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follow Heraclitusstudent 2018 Oct 1, 5:30pm
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Could there be a panic in Bay Area real estate?
Yeah but now you have the new tax law. Not a new tax expert. Say you sell your 1.3 million crap shack and notched a 1 million dollar gain. State tax takes what 13.5% which you cannot deduct against federal taxes anymore-well except the 10k? So what happens-is it still lucrative as a buying investment?
What is 'Panic Selling'Panic selling refers to wide-scale selling of an investment, causing a sharp decline in price. In most instances of panic selling, investors just want to get out of the investment, with little regard for the price at which they sell.
As long as there is a shortage, no panic. Just a pause. People have to live somewhere.
Strategist saysAs long as there is a shortage, no panic. Just a pause. People have to live somewhere.That's true but they may tell themselves that's it's a good idea to rent for some time if prices look shaky.
They could move out of state, only to be replaced by even more people moving in.
rents will shoot up even more
Giant earthquakes should be factored in the price as they are known to happen.
Prices did soften by 5-10% or so since the summer peak, and the number of for sale signs are up. I would buy now, before the next up swing starts in January.
Yes, but they aren't. If a giant earthquake hits, the value of surviving structures could rise or fall,
Strategist saysThey could move out of state, only to be replaced by even more people moving in.There are cycles in the BA economy as well. How many billion dollars companies do we have that have been living from raising cash? You just go into "purge the rot" mode, and a lot of people will go away - at least temporarily. We've seen that movie before.
Heraclitusstudent saysGiant earthquakes should be factored in the price as they are known to happen.Yes, but they aren't. If a giant earthquake hits,
I just renewed my earthquake insurance policy.