Five Reasons Houses Beat Stocks [continued]
Wow… Monday’s post, “Five Reasons Houses Beat Stocks” continues to rock and roll with comments.
Here are some examples:
Most analysts believe that recession, if any, will be mild. By year end, when the stimulus package has kicked in, the economy will be in full recovery mode, and tech is expected to take the lead.
Pow!
Another straw man argument. Nobody claimed here that the price will fall like a rock. But the price will be affected by slowdown eventually – even in Real Bay Area. Because the housing market of Real Bay Area is not isolated from non-real bay area. How much it will get affected and how long? That’s anybody’s guess. That’s something to watch out. That’s why it’s risky to jump into real estate market now. Because we simply don’t know the magnitude of downturn.
Bop!
Let’s first make a correction. There is no plummeting market here in the Bay Area. Secondly, why isn’t your life savings invested?
Zing!
Foreclosures are SKYROCKETTING. EVEN HERE IN THE BAY AREA! Once knowledge of the low prices being offered in auctions becomes more common (they do ads on this on TV now), people are not going to shell out copious amounts of money on a property when it is very obvious that other homes in the same area that were foreclosed upon are at drastically lower prices.
Zap!
To summarize: Live where the management class lives — live in the real Bay Area. Look at it this way: what’s the difference between East Palo Alto and Palo Alto? One side has the execs, the other doesn’t!
Wham! Alright… enough of the Batman sound effects.
What do you think? Click here to post your comment – this entry will not allow comments.
By the way, I’ve upped the number of permissible links (before being held for moderation) to 4 from two.
