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Crazy Drops out west

 
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JCK



Joined: 15 Feb 2007
Posts: 559

PostPosted: Wed Jun 10, 2009 10:11 pm GMT    Post subject: Crazy Drops out west Reply with quote

Now hitting below the 1989 median prices, in the outlying areas.

http://www.latimes.com/business/la-fi-cheaphomes10-2009jun10,0,4802553.story
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balor123



Joined: 08 Mar 2008
Posts: 1204

PostPosted: Thu Jun 11, 2009 2:47 am GMT    Post subject: Reply with quote

"Properties in several areas are selling for less than they did 20 years ago"

In my head, when something is older it should be worth less. Why should my 2001 Honda Accord be worth as much as a new 2009 Honda Accord?
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JCK



Joined: 15 Feb 2007
Posts: 559

PostPosted: Thu Jun 11, 2009 1:08 pm GMT    Post subject: Reply with quote

The land is worth something in a property, even if the physical structure has deteriorated.

Not quite the same as a car...
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balor123



Joined: 08 Mar 2008
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PostPosted: Thu Jun 11, 2009 2:12 pm GMT    Post subject: Reply with quote

Yeah so the land should appreciate while the building depreciates. In a place where the combined sold for $120k in 1989 dollars, the land isn't worth very much so the net should be negative. Coming from Boston where you pay $350k for a lot and $70k for a house, we don't understand this well but in many parts of the country this is the case, especially if you don't keep putting money into the house.
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JCK



Joined: 15 Feb 2007
Posts: 559

PostPosted: Thu Jun 11, 2009 3:02 pm GMT    Post subject: Reply with quote

balor123 wrote:
Yeah so the land should appreciate while the building depreciates. In a place where the combined sold for $120k in 1989 dollars, the land isn't worth very much so the net should be negative. Coming from Boston where you pay $350k for a lot and $70k for a house, we don't understand this well but in many parts of the country this is the case, especially if you don't keep putting money into the house.


Well, given the way prices have gone in CA, I guess you're right!
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PostPosted: Fri Jun 12, 2009 3:14 pm GMT    Post subject: Reply with quote

The Building get older but price not goes down, that is becasue the value of dollar is going way down. Stagflation will kill you in any way you can think of.
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