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Hey Bondo,
Man you are on a roll.
But people I know still go to and live in London for status! They do not
have common sense about weather and less costly places to live. I too
hated it. But my ex-status seeking wife loved England, Scotland and Wales.
I took her there almost yearly and one year I paid for the trip at the
craps table at one of the clubs.
It is all about choices and priorities. And people who have the same
priorities tend to create demand in that area of choice and priority.
Philosophical...perhaps...but true to my life experiences as yours are to
you.
Like my choices now are generally nice weather, low cost of living, nice
house, good beach access, etc. And you have your set of priorities as I
read.
So how was your trading today and what's hot for tomorrow.
Sincerely,
John
> Are you kidding me? I lived in Southwest England (Surrey) for 10
> years. In the London suburbs, a 50 year old 1500 sq ft house with
> moldy windows and a garage that barely fits a washing machine goes for
> nearly the equivalent of $1million. The weather was so bad I left the
> country every chance I had. In fact, I just got together with a former
> Italian colleague who still lives in London, who told me he flies home
> to Milan nearly every weekend so he can drive
> around in his BMW Z4. Gasoline costs $10/ gallon and everything in the
> stores cost twice as much as the US. I lived about 15 miles
> outside of London and I'd be lucky to get to the City in one hour
> because of the horrendous traffic. And the trains were rarely on time.
> My wife used to complain that she couldn't buy the simplest things in
> the UK that we all take for granted here. The movie
> theaters(cinema) in England were like the little porno rooms in
> Manhattan. Don't get me started. I can go on and on with the
> horror stories.
>
> So, everything costs double what it costs here, the stores carry no
> variety of goods, the weather is consistently miserable, and my
> school lunches tasted better than pub food. In California,
> everything costs half of what it costs in London, there are endless
> malls and superstores which carry more than any European can even
> imagine, you're a few hours from the mountains, skiing and beautiful
> beaches, and its always sunny. I think its rained 3 days all year.
> This has nothing to do with status. Its a lifestyle choice.
> Everyday, I know the weather's going to be nice. We think its
> freezing when it gets below 50 degrees F (10C), and by the beach its
> rarely above a dry 85%(34C). I can play ball with my kids, ride my bike
> or go to the beach any day of the year. I haven't worn a
> jacket, carried an umbrella or worn boots in the 4 years since I
> left London. blah, blah, blah.
>
> Back to your question. Generally, demographics and jobs drive
> housing. California adds over a half million people every year. And
> that's only the people who are accounted for. Additionally, the
> marginal low income minority who couldn't qualify for a mortgage 10
> years ago can qualify now due to easy credit. Property taxes are half
> compared to the East coast. But when it comes down to it, you just
> can't beat the weather. Every year when they show the Rose
> Bowl in sunny 80 degree weather on the tellie, I'm sure another few
> thousand Yanks around the country pack their bags and load up a U- Haul.
>
> As for the future, as the baby boomers age, I'm sure alot of
> retirees will cash out of California and move elsewhere. You also have
> to think the infrastucture can only accomodate so many more
> people. There's a constant energy and water shortage. The low
> income worker which is a necessary component of every society can
> hardly afford to live here. Also, if home prices go up further,
> business will move out like they did in the late 80s, and the
> college grads won't choose to live here either.
>
> I lived in Tokyo in the late 80s early 90s so I saw all that happen.
> The rental cash flow just didn't make any sense relative to home
> valuations. And sure enough home prices come down 50%. The
> Japanese had some crazy real estate capital gains laws and 3
> generation mortgages that just added to the mania. It wouldn't
> surprise me one bit if the same thing happend here. But I guarantee
> you, the same thing will happen to UK home prices because the US and UK
> follow the same business cycle. Home prices were down 40% from
> 1990-1994 in London just as they were in southern
> California.
>
>
>
> --- In realtraders@xxxxxxxxxxxxxxx, "magcf2003" <magcf@xxxx> wrote:
>> Mr. Ira, Bondo and all the others
>>
>> I just would like somebody to help me understand this real estate
>> frenzy in California.
>>
>> I am not American, I am Italian and have been living in the UK for
>> years. Last year I have been to L.A. and San Francisco. I do not
> get
>> it, PLEASE take no offence but I was not impressed. In Hollywood
>> celebs get away with it, but, on the other hand, I found Venice an
>> uncomfortable place, although Santa Monica was better, for
> example.
>> San Francisco was allright, but nothing really spectacular unless you
>> have never moved from your 2,000 souls' rural village. In
> Milan
>> and London - two places I am highly accustomed with - middle class
>> have been moving away from the town in recent years, driven by
> high
>> prices and poor quality of life.
>>
>> So, please do not answer me with the supply and demand thing, I would
>> like to know in your opinion what drives demand there (hence supply).
>>
>> Thanks for all your help
>>
>> Claudio
>>
>> BTW = Anybody following currencies?
>>
>>
>>
>> --- In realtraders@xxxxxxxxxxxxxxx, "mr.ira" <mr.ira@xxxx> wrote:
>> > Just saw some new homes in Northern California, 3000 sq.ft.
> Lot
>> size, 10,000-14,000 sq.ft. No landscaping, and rock hard clay
>> soil. Located in a intermediate quality neighborhood. Starting
>> price, with no upgrades, $945,000 and 6 sold the first day. What do
>> they say? "Location, location, location".
>> >
>> > It just doesn't figure, but it is happening.
>> >
>> >
>> >
>> > From: bondo92677
>> > To: realtraders@xxxxxxxxxxxxxxx
>> > Sent: Monday, September 13, 2004 8:00 AM
>> > Subject: Re: [RT] Real Estate
>> >
>> >
>> > That's interesting. Southern California real estate has been
>> marked
>> > down 10-15% over the past 3 months and homes still aren't
>> moving.
>> > But that's not saying much since values have doubled over the
>> past 3
>> > years.
>> >
>> >
>> >
>> > --- In realtraders@xxxxxxxxxxxxxxx, BobsKC <bobskc@xxxx> wrote:
>> > > Of course, there's is nothing quite like three major
>> hurricanes in
>> > a month
>> > > to bring property values down fast. My home on Sanibel
>> Island, Fl
>> > > escalated from $290K in '98 to $550K in '03 but it's hard to
>> say
>> > what it
>> > > may be worth right now. Also, purchasing at historical low
>> > interest rates
>> > > runs the risk that with rising rates, real estate values
> will
>> > fall. Sort
>> > > of like being in a stock you can't sell because trading is
>> > halted ... :)
>> > >
>> > > Bob
>> > >
>> > >
>> > > At 02:39 PM 9/11/2004 -0400, you wrote:
>> > > >Well I am finally seeing it happen in real time...in the
>> > community I live.
>> > > >
>> > > >I am active in Homeowner's Association in my Myrtle Beach,
> SC
>> > community.
>> > > >We are Lakeside and just 5 minutes from the Beach with the
>> new
>> > roads.
>> > > >
>> > > >I saw a list of the homes owned by people from CA and WA
> and
>> it is
>> > > >growing. Apparently there is a network of over 2000 people
>> > dealing with
>> > > >select realtors who find fast growing and escalating value
>> areas
>> > in new
>> > > >communities here and elsewhere.
>> > > >
>> > > >The out of staters are buying homes here and renting them
> for
>> > $1050 per
>> > > >month which covers mortgage and practically all expenses
> with
>> > some left
>> > > >over for repair. In speaking to one from WA, he can not
>> afford to
>> > retire
>> > > >where he lives plus he believes the escalation in value
> here
>> will
>> > give him
>> > > >a better profit than the stock market. Apparently, his
>> particular
>> > effort
>> > > >was started by a group of stock investment club women who
> are
>> > also doing
>> > > >this.
>> > > >
>> > > >It is having a negative affect on our Family community
> since
>> many
>> > renters
>> > > >are college students...away from supervision...FWIW. But
> that
>> is
>> > being
>> > > >gradually dealt with.
>> > > >
>> > > >I am thinking about doing a few properties myself. There is
>> no
>> > let up in
>> > > >demand here.
>> > > >
>> > > >Just FYI.
>> > > >
>> > > >Sincerely,
>> > > >
>> > > >John
>> > > >
>> > > >
>> > > >
>> > > >
>> > > >
>> > > >
>> > > >Yahoo! Groups Links
>> > > >
>> > > >
>> > > >
>> > > >
>> >
>> >
>> > Yahoo! Groups Sponsor
>> > ADVERTISEMENT
>> >
>> >
>> >
>> >
>> >
>> > -----------------------------------------------------------------
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>
>
>
>
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