--- In FairfieldLife@yahoogroups.com, akasha_108 <[EMAIL PROTECTED]> 
> Well you are making the huge assumtion, that RE will continue
> appreciating in the Bay Area. The main point of my prior post is 
> there are strong reasons in the fundamentals to beleive that the 
> of appreciation are over for a long time. But in addition to that,
> look at the current markets in california. San Diego. OC and LA are
> seeing decling prices. IN Norcal, Sacramento, Sonoma county, the 
> bay, silicon vally and even Santa Clara county are seeing declining
> prices, lower sales increased days on market. And this is just the
> beginning of the long adjustment period to get prices in synch with
> incomes (afordability) and rents in line with mortgages.
> And alternative nvestments? Well, many may not equal the last five
> years of Bay Area real estate. All good things come to and end. But
> there are lots of opportunies. One from your neckof the woods: 
> has gone from 100 to 400 in about a year. Beats Bay Area real 
> hands down. I doubt it will continue at that rate. But lots of 
> are doing well. But returns of 20-40% a year -- sometimes more, 
> got used to such in the internet boom, then the housing boom. Its 
> sustainable. If you are looking for such for 30 years, good luck.
> > So we are looking at the same situation two different ways. The
> larger question is the reason for this mortgage interest deduction
> modification being proposed, and gaining interest.
> Its purpose, and only economic justification is to encourage first
> time buyers. Its long term effect has been to price new buyers out 
> the market. It is poor economic policy. 
> > Basically the feds are broke. Better to fix that hole in the 
> than finding creative ways of leaving us citizens with yet less net
> income.
> The proposals are revenue neutral, not a new way to raise revenue. 
> example the mortgage deduction scale down -- only for the top 
third or
> so of tax payers,  is ofset by the elimination of AMT. 
> But if you think BA housing prices are going to go up 20-30% fo the
> next 10 years, best of luck to you.
All good points. Thanks for the info.

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