R50/53 Dont get MCSc?
#26
05-21-2006, 01:22 PM
Originally Posted by chrisneal
... that may be a very risky investment. Prevailing opinion seems to be that many California real estate markets, including the LA area, are grossly overvalued and headed for a crash in the next several years.
Even the Romans kept saying that about the rising costs of Villas in Pompeii ...
"Hmm, dear, should I get that new chariot I've been drooling over or maybe a summer Villa over in Pompeii?"
At his age, it doesn't matter if land crashes ... it WILL go back up because except for the seventh isle of Hawaii, the Almighty just isn't making anymore land.
#27
05-21-2006, 01:31 PM
Originally Posted by chrisneal
"Even if the prices fall, they will eventually rise."
I don't how land prices are correlated with house prices in Californa, but if they've been on the same kind of trajectory for the past 5-7 years, that may be a very risky investment. Prevailing opinion seems to be that many California real estate markets, including the LA area, are grossly overvalued and headed for a crash in the next several years. That 25% profit in one year that you mentioned does not happen in a healthy, sustainable market - it's not a profit derived from risk, just from irrational speculation. If the prices fall, they will eventually rise again, but it may take a long time for them to return to present levels.
I don't how land prices are correlated with house prices in Californa, but if they've been on the same kind of trajectory for the past 5-7 years, that may be a very risky investment. Prevailing opinion seems to be that many California real estate markets, including the LA area, are grossly overvalued and headed for a crash in the next several years. That 25% profit in one year that you mentioned does not happen in a healthy, sustainable market - it's not a profit derived from risk, just from irrational speculation. If the prices fall, they will eventually rise again, but it may take a long time for them to return to present levels.
So, Chris...do you own real estate? You need to understand that in SoCal, the demand for land is neverending, and a very good investment. And to buy actual raw land is not the same as purchasing a house. There is NO land in the LA area....people are buying existing homes, tearing them down, and building new ones. My little vintage house built in 1940 is worth about $1 Million.....and houses in my neighborhood are still selling over asking price, and quickly. I think his Dad's offer is a generous and smart one. I hope he will take that offer, rather than invest his money in a depreciating asset, like a car. 
#28
05-21-2006, 01:35 PM
Originally Posted by MINIclo
My little vintage house built in 1940 is worth about $1 Million.
Want to know how much your house is worth?
Go here http://www.zillow.com/ and just plug in your address
#29
05-21-2006, 01:38 PM
Originally Posted by chows4us
I always knew we had a millionaress in the house
Want to know how much your house is worth?
Go here http://www.zillow.com/ and just plug in your address
Want to know how much your house is worth?
Go here http://www.zillow.com/ and just plug in your address
It's NUTS, but there seems to be no lack of desire for properties on the Westside in Los Angeles....
BTW, I went to that site and they had the incorrect square footage of our house and its lot!
Last edited by MINIclo; 05-21-2006 at 01:41 PM.
#30
05-21-2006, 01:53 PM
Originally Posted by MINIclo
BTW, I went to that site and they had the incorrect square footage of our house and its lot!
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R50/R53 :: Hatch Talk (2002-2006)
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