patrick.net
An Antidote to Corporate Media
1,257,632 comments by 15,008 users - ForcedTQ, goofus, Tenpoundbass, WookieMan online now
Can't believe prices have doubled in 2-3 years
invite response
2014 Jan 29, 11:33pm 40,508 views 98 comments
« First « Previous Comments 92 - 98 of 98 Search these comments
Malkovich
2014 Feb 13, 1:00am
I lived in Oakland. The ice cream shop I used to frequent when I was younger now has an armed guard at the entrance. This is in the "nice part" of Oakland, too. Time for Oakland residents to stop apologizing for the thugs and do something about them.
Wow, that doesn't sound like the parts of Oakland I usually frequent (Temescal, Rockridge, Piedmont Ave, Grand/Lakeshore Ave, Park Blvd).
What street is this ice cream shop on?
No disagreements on Oak residents being fed up with their city's leadership. Then again, I have some pretty big problems with SF gov't too.
Malkovich
2014 Feb 13, 1:03am
I think about Portland, certainly lurk on real estate sites as if they were porn sites and I an addict. Portland has also gone up like crazy, but it is still doable for me. However, I would have to flood my house with sun lamps and hope not to get suicidal. I wish you luck.
Agreed. I go to visit friends in Portland every year. Though I always go in August when the weather is perfect. I thought about Portland a lot too (it really is the only place an SF-er can go) but, yes, the weather is a deal-breaker.
Portland has also gone up like crazy, but it is still doable for me. However, I
would have to flood my house with sun lamps and hope not to get suicidal. I wish
you luck.
As stated before, I was born and raised there. I recently looked up the house that I grew up in (from age 3 till 15). I did know that my parents bought it in 1956, from Zillow I recently learned that it had been built in 1919. I know my parents bought it for $12,000 back then. When I checked on Zillow, it was now appraised at over $450,000. Yeah, Portland isn't all that cheap anymore.
Agreed. I go to visit friends in Portland every year. Though I always go in
August when the weather is perfect.
Two seasons up there - the rainy season and August.
hanera
2014 Feb 13, 2:49am
Jemaho,
With the fiat money system, many governments tends to print money. Hence, long term, money is fast depreciating and is preferably to hold real asset such as real estate. It is not gambling, merely hedging against inflation (depreciation of money). If you can't afford real estate, the best vehicle is dollar-cost averaging purchase of a near no-load index fund such as one based on S&P 500. Not to rain on Malkovich, the average annual return of such an index fund over the last three years is 15%-20% depending on when you start investing.
You may wish to read up on what is meant by dollar cost averaging, no load and pros/cons of an index fund (ask you agent or simply do a web search).
With the fiat money system, many governments tends to print money. Hence, long term, money is fast depreciating and is preferably to hold real asset such as real estate.
A few questions flow from that:
Are real estate markets really not subject to the whims of governments? If government money-printing, as you call it, causes economic downfall, how do you know that real estate in that country will be insulated from that chaos?
Similarly, since your alternative is an S&P 500 fund, what makes you think that an economic downfall wouldn't affect your stock withholdings?
hanera
2014 Feb 14, 4:44pm
With the fiat money system, many governments tends to print money. Hence, long term, money is fast depreciating and is preferably to hold real asset such as real estate.
A few questions flow from that:
Are real estate markets really not subject to the whims of governments? If government money-printing, as you call it, causes economic downfall, how do you know that real estate in that country will be insulated from that chaos?
Similarly, since your alternative is an S&P 500 fund, what makes you think that an economic downfall wouldn't affect your stock withholdings?
I'm referring to long term and not talking about economic downfall, in fact, talking about going through many economic cycles (booms and downfalls).
« First « Previous Comments 92 - 98 of 98 Search these comments
I've been looking in nicer parts of Oakland for a du/tri/4/plex for 3 years now. There has been very little inventory the entire time.
Due to alerts from Redfin and other services I've keep a very close watch on multis for sale in the last few years.
I remember seeing this listing http://www.redfin.com/CA/Oakland/486-41st-St-94609/home/528112 languish on the market forever at $399K.
I had no interest in this property because I am looking to owner occupy and am seeking a different type of building. I also need a garage for all the junk I've acquired over the years.
That said, I could have bought this building and within two years almost doubled my money. I can't believe the extreme lows and highs of this RE cycle - well, let me take that back, the lows did not even go that low (aside from in the ghetto or out in the boondocks - nice neighborhoods in Oakland or especially SF hardly even dipped).
WTF is going on here? Chinese money? Are all the stories about the rich creating these asset bubbles to destroy the middle class true?
I am absolutely fucking shocked at what I see happening. Even dumps in EAST Oakland are now selling for top dollar and 2006 prices (I can't comment on what is going on in the peninsula area - I'm sure there is a good chance it is related to newly rich techies). Who is buying this crap?
I have been saving for years now and am sitting on hundreds of thousands of dollars but with this price run up I can't even find a suitable property for less than $1M (and then we are talking a 100yo building that needs a new foundation).
My accountant says to wait for the next downturn (LOL - he lives in a rent controlled apartment in tony Nob Hill - easy for him to say). But it seems the next downturn probably won't even be that much, maybe even just stagnation.
Forgive the rant, but (even in my amateur knowledge of the economy and RE) I just never would have thought things would have turned out this way.