Quote:
Originally Posted by Wayne at Pelican Parts
I was wrong about the iPhone, but this seems to be coming to fruition.
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I don't know an Iphone from a hole in the ground, but I knew housing was terribly out of whack. That's why I sold off half my rental properties. I just wish I had a better record in the stock market.
I like checking
http://bubbletracking.blogspot.com/ occasionally. Its focus is Southern California. A few days ago, the blogger reported about a large home in San Diego proper. It was purchased for $1.5 million with zero down. Monthly carrying costs were $10k+. It was being rented for $5000/mth. The owner is now trying to short sell for $1.1M. Remember, this has a San Diego address. It isn't 55 miles outside of town. That is a solid 25% drop in value. I'd go crazy if I had to swallow that kind of loss. Of course I'd have to be crazy to buy a property that rents for half of carrying cost.
Ummm, does anyone smell recession?