tag:blogger.com,1999:blog-35190061.post5118422327006305355..comments2023-10-17T03:59:01.588-07:00Comments on Doctor Housing Bubble Blog: Comparative Analysis of 3 U.S. Cities: Contrary to What Your Parents Told You, Not all Bubbles are Created Equally.Dr Housing Bubblehttp://www.blogger.com/profile/12407700951720008626noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-35190061.post-46841524160588086382007-06-05T09:36:00.000-07:002007-06-05T09:36:00.000-07:00Hi guys,,,,, Lookout for Lord Edward Davenport at...Hi guys,,,,, Lookout for Lord Edward Davenport at 33 Portland Place London http://www.33portlandplace.comAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-35190061.post-85430435665041362272007-06-04T20:29:00.000-07:002007-06-04T20:29:00.000-07:00@real vapid bimbos of oc,Definitely need a trustwo...@real vapid bimbos of oc,<BR/><BR/>Definitely need a trustworthy team of:<BR/><BR/>Property Manager<BR/>Realtor<BR/>Maintenance crew<BR/>Lender<BR/><BR/>This is your circle of success in whatever city you invest in. Anyone planning to invest out of state needs to take a 2 week investigation trip to the prospective location. How is the employment of the area? Prospects for growth? Weather? Rental rates?<BR/><BR/>These things are all factors but here's the nice thing for you, all this information is either free or very cheap. All it take is a little due diligence on your behalf.<BR/><BR/>I'm surprised how many people sign for a $500,000 loan not knowing the basic terms of what they have just entered into. Due diligence is vastly under used in my humble opinion.Dr Housing Bubblehttps://www.blogger.com/profile/12407700951720008626noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-23619931743305390442007-06-04T18:54:00.000-07:002007-06-04T18:54:00.000-07:00DHB, how are you handling the property management ...DHB, how are you handling the property management out of state? Local partners or entrusting a PM firm?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-35190061.post-55799250384423556302007-06-04T14:05:00.000-07:002007-06-04T14:05:00.000-07:00Jimmy,Here is a snapshot of 2000 California data:M...Jimmy,<BR/><BR/>Here is a snapshot of 2000 California data:<BR/><BR/>Median SFR Price: $211,500<BR/>Median Family Income: $47,493<BR/><BR/>Ratio of 4.4<BR/><BR/>California price is higher by $90,000 over nation median.<BR/><BR/>2007:<BR/><BR/>Median California home: $597,640 according to CAR<BR/>Median Family Income: $65,000<BR/><BR/>Ratio of 9.19<BR/><BR/>National median home price $212,300. Difference between California and nation, <B>$385,340</B>. The price-to-income ratio has increased over 100% in 7 years. Notice with the DIFFERENCE of our home prices, you can buy nearly 3 homes in other metro areas.<BR/><BR/>Yes, this is a bubble.Dr Housing Bubblehttps://www.blogger.com/profile/12407700951720008626noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-70273326196635087982007-06-04T13:17:00.000-07:002007-06-04T13:17:00.000-07:00Great points, Dr. HB. I have been to LA, San Diego...Great points, Dr. HB. <BR/><BR/>I have been to LA, San Diego, San Fran, etc. and see almost the same thing here in Chicago. I see about 5 brand new S-Class Benzes a day here but I think I saw maybe 5 Benzes the whole time in Nashville. No LV, no Chanel, no BEBE...even the pick up trucks and SUV's were modest. They love Suburbans, BTW..and Escalades as HUMMERS were few and far between. <BR/><BR/>Sure, there are million dollar homes there. These home look like a million bucks set on large wooded lots and simple, southern plantation style. <BR/><BR/>You know what? The people were nice and pleasant and relaxed. We had alot of fun and never felt out of place or out of our league. No brand envy or conspicuous consumption. <BR/><BR/>I love SoCal but hate a vast majority the people. There is more to life than working for status symbols because you don't own them, they own you.<BR/><BR/>(I will still have my beachfront home/studio in Santa Monica someday, though!!)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-35190061.post-10160127473748574312007-06-04T11:48:00.000-07:002007-06-04T11:48:00.000-07:00DrHousingBubble, do you have any historical data o...DrHousingBubble, do you have any historical data on the average mortgage to income ratio for Los Angeles? <BR/><BR/>While I completely agree that LA is overvalued, I also believe that people have and will continue to pay a premium to live here over Memphis. I'm curious to see what a "normal" ratio for LA would be.jshanghttps://www.blogger.com/profile/01225489808987357086noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-86967168525138067612007-06-04T09:49:00.000-07:002007-06-04T09:49:00.000-07:00Socalwatcher,I’ve recommend the book life 2.0 by R...Socalwatcher,<BR/><BR/>I’ve recommend the book life 2.0 by Rich Karlgaard on this site because it directly discusses this issue of overpriced metro areas and people migrating out. The constant pursuit of keeping up with the Joneses. You mention this in the fact that you acknowledge the fact that you felt less branding bombardment.<BR/><BR/>In areas such as Orange County and LA branding is so prevalent that it is second nature to us. It reminds me of wealthy cities in 3rd world countries where the disparity between rich and poor is so blatant, you can see a Ferrari cross a street while 10 beggars ask for change on the other side. Many would argue that we are not at this level but I would encourage you to take a trip to Skid Row in Los Angeles, right next to the financial district. In addition, if it weren’t for revolving debt, I’m not sure how long the illusion of wealth would last. Many other metro areas are more balanced than we are. It is a choice of what you want in life. <BR/><BR/>If you are nearing retirement and have a nice sum of equity, I would buy out of state and with the remaining equity purchase 2 to 3 rentals for passive income. As a young professional, that is the reason I am buying numerous investment properties out of state. This way, you achieve the benefit of owning real estate at prices that make sense and have the high income of Southern California – I imagine many are following this path. What constitutes a solid investment? I guess that’s the million dollar question. As an investor, my philosophy is buying under priced properties that will cash flow with little money down in established neighborhoods with diversified economies. Many people have their own investment philosophy but this is my bread and butter. Many California pundits will tell you that no one can compare with the diversity in California; take a look at how reliant we are on real estate and housing ancillary services and I beg to differ. We are diverse and will weather the storm but the guise of massive diversity is cloaked in deceit; it is a Catch 22, the economy has been strong because real estate has been strong. So you are using lagging information to predict the future. Now that housing is going down, we are seeing massive layoffs, housing prices dropping, and the economy showing signs that a recession is a few quarters away. If we were diverse, why would this even matter? <BR/><BR/>You are right socalwatcher that many will furrow their brow hearing that you are considering Tennessee without ever really visiting the city themselves. As someone that went there and living in SoCal, you are able to compare the two realities. It is a matter of preference and what you want out of your life. But being mortgaged to the hilt in a declining market with a high cost of living makes no economic sense. I’m having a harder time finding pundits talking about why now is a good time to buy. Their argument is becoming more of a Popeye response where they say “now is a time to buy because it is!” I am what I am. Great analytical thinking from the housing pundits.Dr Housing Bubblehttps://www.blogger.com/profile/12407700951720008626noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-82198249625356503472007-06-04T08:44:00.000-07:002007-06-04T08:44:00.000-07:00I drove down from Chicago to Nashville,TN over the...I drove down from Chicago to Nashville,TN over the weekend for a short getaway and was amazed at what I saw. I picked up a local ad book with homes for sale and found some very nice houses, in some nice locations that are close to the city and metro area for some unbelievable prices. A nice home that was built in 2006, 1,800sq ft, would not look out of place in say, Irvine,CA and is selling for...get this: $187,900!!!! <BR/><BR/>I almost fell off my chair. I'm moving.... I could only imagine the utter look of disgust of the though of your average SoCal'er of moving to TN. <BR/><BR/>Nashville offers: <BR/>-nice people (no luxury brand showoffs here)<BR/>-lots to do<BR/>-CLEAN cities<BR/>-excellent food<BR/>-mild weather<BR/>-CHEAP to live in (gas was $3.07/gal as of 6/2/07 and no sales tax on food or clothing)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-35190061.post-68155037278765134532007-06-02T12:26:00.000-07:002007-06-02T12:26:00.000-07:00Flip this house is a product of the current market...Flip this house is a product of the current market place. Same thing with the housing network HGTV. An entire TV network dedicated to fixing your house seems a bit much for me. But again, look at other shows like Extreme Home Makeover and like anything, the mass appeal of housing is everywhere.<BR/><BR/>These shows started taking off in tandem with the bubble. Bob Villa had his show much before but it was on public access most of the time and some random time on the weekend on network TV between Saturday kids cartoons and cooking shows.<BR/><BR/>It'll be interesting to see what happens. In terms of Tanya, first lesson in marketing is sex sells. There are many attractive real estate agents and brokers out there. I mean think about the industry, what other profession would you plaster your face on all your marketing material? Aside from Hollywood headshots, I'm not sure.Dr Housing Bubblehttps://www.blogger.com/profile/12407700951720008626noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-70161382795545019172007-06-01T21:38:00.000-07:002007-06-01T21:38:00.000-07:00Tanya makes my loins twang like a tuning fork! (fo...Tanya makes my loins twang like a tuning fork! (forgive my boldness)Unknownhttps://www.blogger.com/profile/08135782642747874777noreply@blogger.comtag:blogger.com,1999:blog-35190061.post-51994044279878541212007-06-01T14:56:00.000-07:002007-06-01T14:56:00.000-07:00Wow, what a surprise:'Flip This House' star accuse...Wow, what a surprise:<BR/>'Flip This House' star accused of fraud <BR/>http://tinyurl.com/2qxnql<BR/><BR/>A gross symptom of the bubble was/is the real estate shows. I mean, c'mon', how freaking entertaining is buying, selling, and flipping homes; damn whores. The only exception to this rule is Tanya Memme--she is just juicy!Anonymousnoreply@blogger.com