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  • #91
    Originally posted by Ramo
    Until the California real estate market crashes. Seriously, how long can such growth be sustained?
    50 years and counting.
    Try http://wordforge.net/index.php for discussion and debate.

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    • #92
      I was rebutting the statement that reitrees would get out of RE, when they never really do... REITs give a rather steady yield, which is what a reitred person wants.
      Monkey!!!

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      • #93
        Originally posted by el freako
        Also investing in housing for your retirement is a bad strategy because when the baby boomers retire together there will be a large influx of people trading-down, selling investment properties and letting such properties out.
        Perhaphes in most of the country but in California we have a relatively high birth rate and a low age population plus we remain the largest state to recieve immigration. Thus our population continues to rise but the supply of new houses continues to go down due to ever tightening eviromental laws. Nearly half of the "new" developments in San Diego are redevelopment projects in existing urban areas. Meaning old single family homes in run down areas like the East Village (which used to be truly blighted) are converted into new multiuse high rises.

        Multiuse means the the first story is used as office or retail space while the other four stories are used for apartments or condos with underground parking beneith the building. Thus the supply of single family homes is actually decreasing while the population demanding single family homes is increasing. I'm on the right side of the demographic trend in this one.

        BTW rents are averaging a 8% raise per year which doesn't cover everything for the first few years but after three years or so you should show a monthly net profit from rents. Also as the value of the home rises your costs don't rise as you still only owe the remaining cost of the intial loan. You don't get access to the capital until you sell or refinance but it's still increasing your net worth and is a good way to fund a good chunk of retirement.
        Try http://wordforge.net/index.php for discussion and debate.

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        • #94
          Originally posted by Japher
          I was rebutting the statement that reitrees would get out of RE, when they never really do... REITs give a rather steady yield, which is what a reitred person wants.
          Ok, that's true.
          Try http://wordforge.net/index.php for discussion and debate.

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          • #95
            Originally posted by Oerdin

            Perhaphes in most of the country but in California we have a relatively high birth rate and a low age population plus we remain the largest state to recieve immigration.
            Well California is the largest state by population so you would expect that - how does california compare with other states when using immigrants/population?


            Originally posted by Oerdin
            Thus our population continues to rise but the supply of new houses continues to go down due to ever tightening eviromental laws.
            Well being on the right side of a government buggered-up market will certainly help you reap unusual profits.


            Originally posted by Oerdin
            Thus the supply of single family homes is actually decreasing while the population demanding single family homes is increasing.

            BTW rents are averaging a 8% raise per year
            Well be carefull, it sounds like housing costs are outpacing incomes - and that situation is not sustainable long-term.
            How much of the property market is driven by people such as yourself who are using this as a retirement vehicle? and what will happen to prices when they have finished making their investments?


            Originally posted by Oerdin
            You don't get access to the capital until you sell or refinance but it's still increasing your net worth and is a good way to fund a good chunk of retirement.
            Well be aware that a lot of other baby-boomers have the same idea as you, when they start to sell up then prices are likely to fall - of course if you plan to live off the rental income and leave the property to your descendants then you don't have to worry about that.
            19th Century Liberal, 21st Century European

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            • #96
              Like it or not we're stuck.
              That's BS. We have wide freedom of movement to help ameliorate this problem right now.
              I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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              • #97
                Originally posted by Lawrence of Arabia


                well i want my own money. i worked for it, so i deserve it. isnt this america? will america keep its promise to me?
                Your money? what the hell are you talking about?

                When you begin to work you know beforehand you will have to pay payroll taxes-the money that was taken was never going to be "your money" in the first place.

                I find it rather crazy to claim as your money you were never entitled to get in the first place.
                If you don't like reality, change it! me
                "Oh no! I am bested!" Drake
                "it is dangerous to be right when the government is wrong" Voltaire
                "Patriotism is a pernecious, psychopathic form of idiocy" George Bernard Shaw

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                • #98
                  Originally posted by Ogie Oglethorpe


                  Krugman has the credentials but also the hate of the current admin to make me question almost everything he writes.

                  Partisan doesn't begin to describe him.

                  Edit - Damn need to read to the end of the thread. What Drake said.


                  Says someone who quotes from the National Review or the WSJ Editorial page and other such rags

                  Krugman is partisan- so what? Unless you can challenge the numbers, you got no case.
                  If you don't like reality, change it! me
                  "Oh no! I am bested!" Drake
                  "it is dangerous to be right when the government is wrong" Voltaire
                  "Patriotism is a pernecious, psychopathic form of idiocy" George Bernard Shaw

                  Comment


                  • #99
                    Krugman dances around the issue a lot, so if you don't read carefully, you will be misled about what he is really saying.

                    Privatizing Social Security - replacing the current system, in whole or in part, with personal investment accounts - won't do anything to strengthen the system's finances.
                    It won't strengthen the Social Security system's finances, but it will strengthen our collective retirement finances.

                    If anything, it will make things worse.
                    The "things" he is talking about is solely the Social Security system. Not our retirement finances in general. By replacing the system, our federal debt might go up (we're paying on this at 3% real), but our gains will go up too (our accounts will be paid 5.5% real or whatever).

                    Nonetheless, the politics of privatization depend crucially on convincing the public that the system is in imminent danger of collapse, that we must destroy Social Security in order to save it.
                    This is a strawman, because the reformers want to replace the Social Security system with a system designed to more adequately finance retirement. They neither want to "save" nor "destroy" the Social Security system.
                    Last edited by DanS; December 8, 2004, 12:17.
                    I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

                    Comment


                    • Originally posted by DanS
                      It won't strengthen the Social Security system's finances, but it will strengthen our collective retirement finances.
                      The Bush plans creates major problems for the U.S. economy, it will leave poor people worse off, it creates massive problems in the future. and there's no pressing need to change the Social Security system.
                      Golfing since 67

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                      • The Bush plans creates major problems for the U.S. economy
                        How so?

                        it will leave poor people worse off
                        How so?
                        I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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                        • Lawrence:

                          half a million plus my property that i can sell in the city for a few million (real estate always goes up)
                          huh? real estate in the city always goes up? it's been falling dramatically for the past 50+ years. and that's not even mentioning the inverse relationship between real estate values and property taxes. In a city like Philadelphia, real estate values have been plumeting continuously for decades in all but the gentrifying neighbourhoods all while property taxes have been raised to restore the balance.
                          "Flutie was better than Kelly, Elway, Esiason and Cunningham." - Ben Kenobi
                          "I have nothing against Wilson, but he's nowhere near the same calibre of QB as Flutie. Flutie threw for 5k+ yards in the CFL." -Ben Kenobi

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                          • Originally posted by Albert Speer
                            In a city like Philadelphia,
                            You keep forgetting that Philly is a pit.
                            Christianity: The belief that a cosmic Jewish Zombie who was his own father can make you live forever if you symbolically eat his flesh and telepathically tell him you accept him as your master, so he can remove an evil force from your soul that is present in humanity because a rib-woman was convinced by a talking snake to eat from a magical tree...

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                            • Reasl Estate values in NYC are through the roof.

                              Average cost of a new apartment in Manhattan is 1 million dollars. The Median is probably around 800,000, thought that number I am not sure about.
                              If you don't like reality, change it! me
                              "Oh no! I am bested!" Drake
                              "it is dangerous to be right when the government is wrong" Voltaire
                              "Patriotism is a pernecious, psychopathic form of idiocy" George Bernard Shaw

                              Comment


                              • i assume Baltimore, Detriot, Chicago, Dallas, Houston, Oakland, etc. all face similiar problems as Philadelphia.

                                And Manhatten, Gepap? you're mentioning Manhatten? apples and oranges. of course there's some gentrifying or already wealthy areas where real estate values continually rise but for much of america, real estate has been plummeting for decades.
                                "Flutie was better than Kelly, Elway, Esiason and Cunningham." - Ben Kenobi
                                "I have nothing against Wilson, but he's nowhere near the same calibre of QB as Flutie. Flutie threw for 5k+ yards in the CFL." -Ben Kenobi

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