--- In FairfieldLife@yahoogroups.com, akasha_108 <[EMAIL PROTECTED]> wrote: > > Well you are making the huge assumtion, that RE will continue > appreciating in the Bay Area. The main point of my prior post is that > there are strong reasons in the fundamentals to beleive that the days > 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 east > 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: Google > has gone from 100 to 400 in about a year. Beats Bay Area real estate > hands down. I doubt it will continue at that rate. But lots of stocks > are doing well. But returns of 20-40% a year -- sometimes more, many > got used to such in the internet boom, then the housing boom. Its not > 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 of > the market. It is poor economic policy. > > > Basically the feds are broke. Better to fix that hole in the pocket > 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. For > 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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