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The end of this article reads like this is a bad thing. > These hopes still exist, and at least some of those IPOs will happen this year. While the water is a
by cleansy 8y ago
The end of this article reads like this is a bad thing.
> These hopes still exist, and at least some of those IPOs will happen this year. While the water is a little ruffled, these are still the boom times in the Bay Area.
It's more like the market comes back to a stable position, stopping the craziness of the last couple of years. It's actually a good thing. I'm in Europe and did not buy an apartment in the last 3 years even though I could have and wanted to. Just waiting for the overpriced square meter prices to fall to a more sustainable level - and if SV takes the first shot, so it might do in the rest of the world.
- Bombthecat 8y agoThen you pay more in interest rate... In. 30 to 40 year time. You end paying basically the same..
- lotsofpulp 8y agoWith a lower principal and higher interest rate, you have the option of paying extra principal before it is required to be paid, resulting in lower amounts paid towards interest. With higher principal and lower interest rate, you're stuck paying the higher principal no matter what.
- conanbatt 8y agoNot only that: high interest rate can be re-financed. Some real estate moguls say that its better to buy cheap with exp credit than expensive with cheap credit because of that asymmetry alone.
- Bombthecat 8y agoHow many people have that extra income, to pay extra? I dont think that many people do.. (beside us here)
- lotsofpulp 8y agoIf you're buying a 15+ year mortgage and haven't budgeted any slack in your monthly payments and you're not expecting any income growth for 15+ years, then you shouldn't be buying the mortgage in my opinion.
- bradleyjg 8y agoThis is why such a high rate of homeownership is pernicious. When the costs of TVs, food, or gasoline goes down it’s widely recognized as a good thing. When the costs of housing—a universal necessity—-goes down it’s a national emergency about which something must be done.
- dragonwriter 8y ago> When the costs of TVs, food, or gasoline goes down it’s widely recognized as a good thing. When the costs of housing—a universal necessity—-goes down it’s a national emergency about which something must be done. Actually, drops in food prices aren't seen as an unmitigated good thing, which is why a number of food prices are subject to price supports.
- jeffbax 8y agoJust because we send government pork to big farm and all kinds of other regulations around limits on what food can be sold and how doesn't mean they are good ideas. I am open to the possibility, but I severely doubt that lower food prices are actually a bad thing and that whatever market equilibrium we'd have without intervention would be problematic.
- dsfyu404ed 8y agoWall street did plenty of bitching and moaning over the oil price declines that happened in the past 5yr and there was not shortage of articles decrying that even though it might look like a good thing from the perspective of someone who has to buy gasoline that it was actually a bad thing for the economy.
- simplecomplex 8y agoBad for American fracking companies exporting oil, but great for green energy business.
- bradleyjg 8y agoThere’s always going to be someone unhappy for any good or service. But with homes it’s a majority of the electorate. That’s highly problematic.
- conanbatt 8y agoSF is too unique to be a canary for the rest of the world I think. I am in the exact same position as you: had the opportunity to purchase but the pricing is irrational, Im not willing to pay this much for what the market offers.