patrick.net

SoCal Renter says

Areas with relatively low taxes and excellent government service ... will see phenomenal growth in home prices.

And when you think of such areas,
CA and particularly Bay Area is the 1st thing that obviously comes to mind. :-)
But I agree with your general premise, so prices in Singapore may well go up.

I know. I wish I could come up with such clever terms as Califallyeah...

robertoaribas says

“don’t debate with an idiot, they drag the discussion down to their idiotic level and then beat you with their superior experience at being an idiot”

;-).

Along the same lines as the famous quote:

"Don't wrestle with a pig. You get dirty, and the pig likes it"

robertoaribas says

So, Iwhack, on this third flip flop claims the median is messed up because it “is overly effected by the extremes” , when precisely the opposite is true.

Wow. It is customary when using quotation marks to put something inside them that has actually been said (or written in this case). You have done exactly the opposite. Not only didn't he say that, he hasn't said anything even close to that.

Your reading comprehension skills are decidedly lacking.

shrekgrinch says

You are confusing increases of interest rates with increases in price inflation. It is the later that increase hard asset prices (art, land both improved and not, etc.). Easy access to debt can also fool you into believing true inflation is happening when all that really is happening is a classic bubble. Cheaper rates = easier access to debt. Higher rates = the opposite.

No one is confusing anything. Wage inflation is the driver, of course. Historically high interest rates occur during periods of wage inflation. How do you not understand that?

shrekgrinch says

According to you, the home prices must have SOARED in real dollars.

Now you're talking about real dollars??? Let me know when you can buy a house in real dollars.

Real dollars are completely irrelevant. The whole point is that you'd rather be an owner during inflationary periods...

"investors" are gambling that they will get paid their asking price ... and when they are paid it will be on a regular basis ... and when the tennant leaves there will be very little work needed. Here in the valley, it is my opinion that investors are going to bleed cash for a very long time, since only those that can not buy a home -- will not buy a home -- for the same monthly cost. So, that whole "lowest common denominator" thing starts to take a toll on those sub-divies full of stucco-wrapped-POS that the coastal based specuvestor loves to try to rent in the valley for coastal per-sq-ft amounts. Section 8 is their only hope ... and I am praying that it finally gets exposed for the fraud it is and ended, or cut severly.

shrekgrinch says

tatupu70 says

No one is confusing anything. Wage inflation is the driver, of course. Historically high interest rates occur during periods of wage inflation. How do you not understand that?

Not when the high interest rates stop the music. And today’s economy, the wage spiral is bunk. Outsourcing sees to that.
How can YOU not understand that?

OK--so now we're not talking about history anymore. Now you want to completely change the subject and talk about how next time it will be different. That's a different discussion. Try to stay on topic next time, OK?

shrekgrinch says

tatupu70 says

Real dollars are completely irrelevant. The whole point is that you’d rather be an owner during inflationary periods…

What part of “You are confusing increases of interest rates with increases in price inflation” did you not READ?

Shrek--you have a very bad comprehension problem. I've never attributed cause and effect to interest rate movements and home prices. I've only talked about the empirical relationship that has existed historically. Do you udnerstand now?

Can someone please LOGICALLY explain to me how in the world we are going to have any sort of respectable WAGE inflation in the next 5 years? If we can't get some sort of wage inflation... Then homes can't inflate because the majority of Americans are still in debt up to their eyeballs... underwater in their homes, and living on stagnant wages cutting their spending in other areas to afford housing.. which is crushing any economic growth elsewhere.

Los Angeles Renter says

Can someone please LOGICALLY explain to me how in the world we are going to have any sort of respectable WAGE inflation in the next 5 years?

Cost-push. Wages can and do go up as the cost of living goes up.

Of course, the last time we were at this level of unemployment:

http://research.stlouisfed.org/fred2/series/UNRATE

the fed funds rate was:

http://research.stlouisfed.org/fred2/series/FEDFUNDS

17.5%, not 0. A slight difference.

Los Angeles Renter says

The fall of Rome was fundamentally due to economic deterioration resulting from excessive taxation, inflation, and over-regulation. Higher and higher taxes failed to raise additional revenues because wealthier taxpayers could evade such taxes while the middle class–and its taxpaying capacity–were exterminated.” cited : http://www.cato.org/pubs/journal/cjv14n2-7.html

Well, let's see. We have low tax rates, low--almost non-existent--inflation, and very little regulation. I'm not sure how this analogy applies at all.

Los Angeles Renter says

.. and lead to our downfall similar to the Roman Empire.

Herein is the rub.
In the event of wholesale national and govt. collapse, what would you own other than real estate? Everything else residing on the national currency evaporates, as I already pointed out in another thread based on the experiences of Russia and continental Europe nations, where such "Roman empire down falls" have happened with regularity a couple times per century and are firmly ingrained in the people's psyche.

After having worked in London for a month, I told my manager "If the French ever invade again, surrender immediately and hope they send you some chefs". I did the same thing dittomichel did, tried fish and chips (a few times, I figured I had found a bad place). Eventually I just ate Indian every day, it was by far the best I've ever had, and I've tried quite a bit from around the world.

If you're going for Asian, I would recommend heading up to Vancouver and trying out some of their fusion restaurants. The huge asian market makes it a great place to learn.

Another cheaper and less obvious option is to start up a lunch/dinner delivery style operation. Advertising/Ordering online with super simplicity (check out Chiptole's online ordering or Dominos). Have your chef/partner show that he can create meals people want, that he's reliable, that you can work together. Use google adwords and print media to get your name out to all the local businesses around you and see if you can get a decent following through that. Just have him create all the meals and have people deliver them to all the offices around there. See how things work out. You could probably do most of the cooking from a home, which means no leases, no money invested in restaurant equipment, etc.

tatupu70 says

Los Angeles Renter says

The fall of Rome was fundamentally due to economic deterioration resulting from excessive taxation, inflation, and over-regulation. Higher and higher taxes failed to raise additional revenues because wealthier taxpayers could evade such taxes while the middle class–and its taxpaying capacity–were exterminated.” cited : http://www.cato.org/pubs/journal/cjv14n2-7.html

Well, let’s see. We have low tax rates, low–almost non-existent–inflation, and very little regulation. I’m not sure how this analogy applies at all.

Well, in this great country, much different than your doomsday Roman Empire scenario, most people who make less than $50k per year in fact make a profit (thanks to tax credits) on their Federal Taxes, and it's the "rich" who are left to pay most of the federal taxes.

We not only still have Gladiators entertaining the common masses at the Coliseums (NBA Football players), but we also have $200 million dollar movie productions that the common masses can rent for $1 at their local video store.

"If you’re going for Asian, I would recommend heading up to Vancouver and trying out some of their fusion restaurants. The huge asian market makes it a great place to learn."

There are two kinds of chinese places, the places that the chinese people go to and the places that non-chinese frequent, they are two separate market.

If you do the Vancouver (technically Richmond, BC) style, you get all the rich entrepreneur who bought their citizenship in Canada, Most of those business owners invest their way into Cananda and paid for it by owning restaurant prior to doing it in Canada. The other known places where foreignors dominate are San Gabriel Valley, places scattered across the bay area and Metro New York. As an outsider, you have no chance in this market nor will your capital be valuable/needed. Koi Palace in Daly City has the top (or close) gross receipts in the entire restaurant industry (single location) in the bay area doing about 50K in daily sales.

Then there are the Panda Express like places. I think Panda Express is headquarted in San Ramon and they are pretty successful, they frequent the American malls and non-asian strip malls and no reasonable chinese people eat there out of choice, but it is successful nevertheless and it definitely can be done given good location, good lease terms and proper management.

As a potential customer, I would appreciate a Ramon Noodle place in the east bay near UC Berkeley where 10K asian students go to school. I think there is tremendous demand.

Fisk says

Los Angeles Renter says

.. and lead to our downfall similar to the Roman Empire.

Herein is the rub.

In the event of wholesale national and govt. collapse, what would you own other than real estate?

Guns? Then the real estate comes easy.

Fisk says

In the event of wholesale national and govt. collapse, what would you own other than real estate?

A plane ticket on All Nippon or Lufthansa. Back in the 30s the smart bears saw the writing on the wall and GTFO of Germany early.

While the propagandization of the rubes hasn't quite reached Völkischer Beobachter/Der Stürmer levels quite yet, we're about 30% of the way there.

Now, I'm only 30% in the doom camp. I see a 40% chance of following Japan's path of ballooning BS, and 30% of things getting better somehow, like they did in the 90s.

Troy says

Cost-push. Wages can and do go up as the cost of living goes up.

Except for the fact that they AREN'T.

Troy says

A plane ticket on All Nippon or Lufthansa. Back in the 30s the smart bears saw the writing on the wall and GTFO of Germany early.
While the propagandization of the rubes hasn’t quite reached Völkischer Beobachter/Der Stürmer levels quite yet, we’re about 30% of the way there.
Now, I’m only 20% in the doom camp. I see a 40% chance of following Japan’s path of ballooning BS, and 20% of things getting better somehow, like they did in the 90s.

1. The plane ticket is no problem, but I'm afraid visas in that situation gonna be a bitch :-) just as in your Germany comparison. Not to boast, but I've got 2 passports besides US and am statutorily eligible for 2 others myself + 1 through my wife, perhaps a record on this board.

But one does not preclude the other. Folks who GTFO of Germany who held the title to their RE did after 1945 just fine, even if little above 1 ft. height was left thanks to USAF/RAF. Those who held Reichs debt obligations, Mark cash and bank accounts, stocks, and even gold were not so lucky.

2. Your percentages (20 + 40 + 20) don't add to 100%, what's your other 20% outcome?
I'm in neither of your camps, but in the "USSR" camp (perhaps biased by my life experience). In brief, effective national default on existing debts and obligations via high inflation and perhaps currency reform, continued economic polarization associated with atrophy of many existing state functions including health and welfare, widespread tax evasion/ underground economy and economic and other crime, proliferation of ethnic and neighborhood-based gangs that effectively rule certain areas, devaluation of formal education, and adjustment to a much lower general lifestyle (esp. for those with no immediate econiomic utility). Perhaps chirping of the country and low-grade warfare in the regions near Southern border, where non-English cultures are in or near majority.

But, as history has shown from the collapse of Roman Empire to that of USSR and Argentina, it will not be "Mad Max". There will be some government, and monetary system, and taxes, and private property, and military, and laws, and those enforcing them. Humans are great survivors: people adjust, life goes on.

The first generation of asians have left Richmond, creating a wealth of higher end fusion restaurants. The best chinese food comes from Richmond still. The worst from those restaurants catering to other ethnicity's. The fusion places aren't cheap, but offer up great dishes. The best is an asian fusion with Indian spices.

Restaurants fail when they are run poorly. All you need is good food and a good manager. That means, you need a good cook and someone who is able to multitask and keep the various employees on task and coordinated. My family was basically built on the restaurant business. I've seen it thrive and I've seen it crash. I suggest you watch every season of Kitchen Nightmares because it is a 100% accurate reflection of the dos and don'ts in the restaurant industry.

Basically, if you can serve good food, provide good service, keep the place clean and the atmosphere nice, things go smoothly. I've seen places that serve phenomenal food fail because they can't get orders out on time. I've seen phenomenal food fail because the place is filthy.

dittomichel says

Sounds like you’re seeking a cash poor partner you can exploit. What happened to your outrage over the exploitation of the working class and middle class? I’d like to think successful businesses provide strong incentives and a good working environment - the partner needs a vested interest in the business taking off instead of failing like most do. Try a culinary school - interview top grads, etc.
TechGromit had good advice except I would say that not all franchise opportunities take off. I have in-laws who invested in an urban, hip type coffee franchise in Park City, UT. It didn’t die a horrid, epic death….but they closed it eventually. Competition in food service is tough. Still, I’d agree that franchise opportunities are less risky than going out on your own. Way more expensive to start-up, but less risky. Panera Bread wants $7 million in assets, $5 mil of which has to be liquid. Chipotle has got to be similar although I don’t know.
If you are going for Chipotle style Asian…I’m assuming you mean Asian with quality organic and local ingredients where possible. Get a chef who can make some crazy good Asian and make it Asian fusion so you aren’t just an organic version of Panda Express.
For goodness sake, forget English food. It’s great that you may enjoy it but the vast majority of American palates don’t seem to enjoy English food - the Brits are getting better but that is mostly b/c they have really embraced other culture’s cuisine - like Indian. I had fish and chips once….only because I was in London and it is kind of a standard fare, served in a newspaper cone. It, like most other dishes I have had over there wasn’t particularly good. You probably have noticed that there aren’t exactly a ton of English or German restaurants…there might be a reason for that. Plus it’s fried and not healthy. Subways are thriving these days b/c people are finally making an effort to eat healthier. Long John Silver’s isn’t around anywhere that I’ve seen in quite some years. If you go with your passion for English food….get a liquor license and make it an English Pub. Drunk people don’t care as much about calories.
You already know you need a good location. I like the idea of something next to an large office building, be it government or corporate. If you are a no-name / no reputation place, office workers might try you just out of boredom from their regular rotation. If your food is quality, maybe you get a following. If you deliver to the office floors, better. Be prepared to lose money for a long time. Chipotle and Subway make money because they is always a line.
Good luck if you explore it further and go for it. It’s too risky for me but if I had lots of extra cash I could afford to lose, I could see trying it.

Rofl, so offering someone with no money a job running a restaurant is exploitation? Not for nothing, but I know about 3 or 4 people who would consider it a gift right now.

Funny thing though....I wasn't worried about his "partner" skimming. I was thinking someone might under report.

Oh, well. Thanks ever so much for clearing that up. If you think this is game on, I'm not the type to play tag.
Seriously? You sound like a nut job.

tatupu70 says

Well, let’s see. We have low tax rates, low–almost non-existent–inflation, and very little regulation. I’m not sure how this analogy applies at all.

Very little regulation? LOL! And where does the US stand in the industrial world as far as business taxes?

I can think of a much larger list of dumb things that lots of people -- not just americans -- believe.

I can also think of plenty of dumb "liberal" things that a lot of people believe. Right now Republicans just happen to be slightly better at spreading their lies than the Democrats.

The fact is, most people aren't very bright. About 20% of the population (if that) supports everyone else. That 20% sets the agenda.

The good news is that the 20% is not of one mind, so it doesn't really matter if the rest of the population is dumb or not. The only major problem is when we let the dumb ones think that they should be in charge of things.

CrazyMan says

Fisk says

Los Angeles Renter says

.. and lead to our downfall similar to the Roman Empire.

Herein is the rub.
In the event of wholesale national and govt. collapse, what would you own other than real estate?

Guns? Then the real estate comes easy.

winner winner chicken dinner

I find it odd that all polls do not have an "*" after them that says, "based on answers from people that 1) had a house phone, 2) were home when we called, 3) answered, 4) spoke english(or the desired lingo of the pollster), 5) answered honestly, 6) were sober, 7) promise they vote. "

just kinda don't trust the whole "poll" thingy much, myself

Bap33 says

I find it odd that all polls do not have an “*” after them that says, “based on answers from people that 1) had a house phone, 2) were home when we called, 3) answered, 4) spoke english(or the desired lingo of the pollster), 5) answered honestly, 6) were sober, 7) promise they vote. ”

I shoulda been sober? Damn!

Bap is right, tho. Remember, Howard Dean was the front runner of the 2004 election until there was actually a primary. Then he was toast. It was all polls - the annointed one wasn't what any of us wanted.

Don't trust polls either.

Unfortunately polling questions can be worded in a confusing matter so most of these polls can be answered in the way you want them to. It would be very useful to see how they worded there questions to determine if there was an attempt to confuse those that were questioned. Also who likes to answer polls anyway? More often than not, people do not want to be bothered with poll takers, they are along the same lines as telemarketers. So who are they getting to answer these polls? If they were polling student on a college campus that be one thing, but if you going to go you in Redneckville, Kentucky, and go door to door to trailers, I'm sure you'll find people with lower IQ's and answers to match.

"25 percent of Americans don’t believe in Darwin’s theory ... while less than 40 percent do..."

Er huh? So what do the other 35 percent believe? How was this question worded? Do you believe in Darwin's Theory? Yes? No? Who's Darwin?

"...about a decade ago, 20 percent of Americans still believed that the sun revolves around the earth...."

Again, who the hell did they ask? And did they return to the same area to re-take the poll a decade later. Are they better educated now, or do they believe the earth really revolves around the moon?

" ... more Americans were able to name two of the “seven dwarves” than two of the Supreme Court justices...."

I'm guilty of this too, however what's this have to do with your topic, "16 of the Dumbest Things Americans Believe — And the Right-Wing Lies Behind Them". So the right wingers are conspiring to prevent Americans from remembering there Supreme Court Justices names? Sounds like a big waste of the right wingers time, they should be spending more of it on there the sun revolves around the earth conspiracy.

Asking prices don't mean squat to any BUYER using their head to make a purchase. Banks do not loan based on asking prices of other units. Taxes are not based on asking prices. Asking prices are candycane dreams. Unicorns. Vapor. Pixie Dust.

Bap33 says

Asking prices don’t mean squat to any BUYER using their head to make a purchase. Banks do not loan based on asking prices of other units. Taxes are not based on asking prices. Asking prices are candycane dreams. Unicorns. Vapor. Pixie Dust.

Talk about dreaming...Buyers using their head. Which is a higher percentage, people who buy using straight economics or people who buy because the walls are the right color?

I do have to say things are certainly weird out there. Some minor fixers we have seen in the Lamorinda/WC area have sold for way less than I thought they would, and as a total shock to me, homes are selling in Pinole Valley for above asking and WAY more than I would ever pay. We actually lost out on a house in Lafayette we were really interested in but did not make an offer on because we never thought they would take 80k less than asking, Damn house sold for exactly that!

Another house in Pinole Valley we went to see we didn't even want, especially for the price they were asking. You could have knocked me over when we saw that it sold for 30k MORE than asking, and only 10k less than the house in Lafayette!

Granted the Pinole Valley home had a pretty decent "Home Depot" remodel, and the Lafayette house was an older cottage and a fixer - but that fixer in Lafayette was on 1/2 acre with a pool and would rent for $500-$1000 more a month!

The market is bizzaro world here in the Bay Area.

Bap33 says

Asking prices don’t mean squat to any BUYER using their head to make a purchase. Banks do not loan based on asking prices of other units. Taxes are not based on asking prices. Asking prices are candycane dreams. Unicorns. Vapor. Pixie Dust.

Sorry, but I am on the ground and until a couple weeks ago was actively looking with a pre-approval. I can tell you that in Contra Costa and Alameda County, CA, buyers are not using their heads, houses are selling fast in the areas I am looking at in the 300-500k range, many for asking or over asking.

Things are weird. My wife and I were interested in a place that went from a short sale (we offered $275) to an REO in Vacaville. We thought the bank was asking too much. Comps indicated that was the case. The bank wanted us to bid up our price, we refused and walked. Turns out, someone did bid up on that house and it's being sold for over $300k.

Instead, we are now in escrow (not an REO or short sale) for a nicer house (3/2 1560 sq/ft, lot 7900 sq/ft) in a better neighborhood (less traffic, less noise) that needs no work, has been remodeled, and we agreed on a price of $285k. Asking price was $289,900. This one we can afford to make payments (going FHA) on one salary.

We thought about renting a nicer house (we rent a mediocre place in Davis because we can't afford to buy in Davis) but the cost of a nicer rental here would be higher than buying. We looked for 11 months before we found this place and decided it made sense for us to buy.

shrekgrinch says

I never said ‘next time it will be different’. I’ve been saying it will be the same: When interest rates rise debt-sensitive asset prices will be negatively affected.

And I'm saying that historically the correlation between interest rates and housing prices has been VERY small. So, in reality, the negative effect of interest rate increases have been outweighed by other factors. Basically, your point is moot.

Of course interest rates can rise w/o inflation. It's just that it has been a very rare event.

a4adam, you did your research well and it paid off. Congrats!

shrekgrinch says

His entire 2008 campaign was ‘don’t worry, be happy, we’re going to fix EVERYTHING’. And that is why he is being judged that way. I didn’t make those rules — he did.

Nice strawman. That was not his campaign at all.

Shrek is right on taxes -

http://www.politifact.com/truth-o-meter/promises/promise/515/no-family-making-less-250000-will-see-any-form-tax/

The only thing he didn't say is "Read my lips" which we were bludgeoned with over and over again in the '92 campaign. I can still hear the remix in my head "Read my lips...Read my lips...Read my lips...No new taxes". Ahh, back in the day when MTV actually had music videos...