Posted on 03/05/2022 6:58:08 PM PST by ChicagoConservative27
They could probably increase their rental income by more than double that invested elsewhere. Cap rates are stupidly low there
Same here in the San Francisco Bay Area. Mountains and Pacific Ocean to the west. Bay to the east (or west, depending on where you are). Mountains to the east. Valley to the south leads you to Morgan Hill and Salinas with one road (101) in and out). Graphic constraints all around.
Ok—please—don’t call it “San Fran.” It’s SF or San Francisco.
Yes San Diego is great. The most perfect weather on the planet and somewhat more family -friendly than other coastal areas of CA. Great food and scenery and business friendly (for CA) climate too. San Diego is awesome really.
This appears to be a classic bubble. Very wealthy persons and banks/insurance companies use their liquid assets to keep overpriced assets propped up or going up. Eventually the bubble cannot be sustainable and bursts or deflates. This happened in 2007 and I believe it is coming again.
Insane prices for a single story home with no basement on a 1/4 lot with no view and a wall around you for privacy. Plus a fixer upper too. You pay approx 1.25% property tax.
So $10,000 on a $800,000 home.... How does anyone afford that plus the mortgage and all the other costs of owning a home!
Median Home Prices
Southern California
Existing Detached Homes by County, 1990-2021
http://www.laalmanac.com/economy/ec37.php
Yes, of course it’s a bubble.
But “unaffordable” is a meaningless term, unless you are willing (as I am) to follow the implicit critique into a broader challenge to State Capitalism (or oligarchy).
Obviously, when houses are selling within 24 hours at 125% of the asking price, they cannot possibly be “unaffordable”.
If you mean, under a system where usury is no longer a crime, there is no regulation of “innovative lending products”, protection of lenders at all costs, no protection of borrowers who are, let us say, not as crafty as the lenders, and where “a house” as the standard unit as opposed to “a neighborhood”, a “village”, a “town”, or a “state” has no interest in who buys it or how or why, only then can you start a constructive discussion about what you MEAN by “affordable”.
Unsustainable would seem to be more correct.
“But “unaffordable” is a meaningless term”
You think like me. I get TOTALLY SICK of the Orwellian Term: “Affordable Housing”, as in “you must build 50 units of ‘affordable housing’ if you want to build the rest of your development’”.
By definition, if you build 50 units of housing worth $5M each and sell them for that, then they are ‘affordable’.
Dammit, just CALL IT WHAT IT MEANS, which is Low Income Housing.
Well, you are right of course.
Where we probably differ is how to manage the CONSEQUENCES of a large low-income population and their necessary interactions with the economic system.
Also you could have added "Frisco" to your not list.
;-)
Yes no “Frisco” too thanks.
Even though I’m a conservative and San Francisco is full of problems and is currently hideous and unsafe, as a local it nevertheless drives me crazy to hear yes The City called San Fran, Frisco, even “SFO”. . .
I live in Frisco...Texas.
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