The ACD Method
- Thread starter sbrowne126
- Start date
I'm riding along in some guys car following a tank while listening to Turkish music that I don't understand, thanks to Periscope video feed....what a time to be alive!
https://www.periscope.tv/w/1lDxLQZjXezKm
https://www.periscope.tv/w/1lDxLQZjXezKm
FYI, Turkey has between 60 to 70 nuclear warheads stored at Incirlik and supervised by the 39th Air Base Wing.
https://en.wikipedia.org/wiki/Nuclear_sharing
https://en.wikipedia.org/wiki/Nuclear_sharing
USD/TRY up 1400 pips...
Yep, I definitely agree that we are in "greater fool" territory when it comes to housing in many US cities (i.e. "yeah I'm probably overpaying, but as long as someone is willing to buy it from me at a higher price who cares" or "yeah the real estate is double what is was in 2009, but I can make the monthly payments so who cares.")
With that said, I think some areas real estate is wildly overvalued, while other areas are fairly valued.
My extended family just bought a nice 4 bedroom house for $200K in Raleigh, NC. The economy is growing at a fast clip there, the state's budget is balanced, taxes are reasonable, and there are a lot of job opportunities. I don't think they will get burned badly in a real estate downturn. Similar things can be said for some markets in Florida; with businesses moving down there at a fast clip due to no state income taxes and lack of unions.
Contrast this with places like Northern New Jersey, with out of control taxes, budget deficits, expensive real estate, and companies realizing that they no longer need to be right on the periphery of NYC due to technology, and in my opinion there is a big dislocation in terms of value. I feel sorry for people buying at today's prices in NJ, CA, CT, Boston, Chicago, etc.
Lived in Boston so I'll comment on the particular situation there. IMO, Boston like NY is in a mkt of it's own. Why? Education.
Count how many educational institutions are in the city and surrounding areas. How many are Ivy? Look at the chart above with BOS, shallowest trough ex Dallas. Texas has it's own story BTW. As long as education is a viable industry, people will move to Boston and pay what the mkt demands for rental during their studies, and that trickles down to the RE asset price. There will be bids.
Count how many educational institutions are in the city and surrounding areas. How many are Ivy? Look at the chart above with BOS, shallowest trough ex Dallas. Texas has it's own story BTW. As long as education is a viable industry, people will move to Boston and pay what the mkt demands for rental during their studies, and that trickles down to the RE asset price. There will be bids.
Talk like this is starting to get me excited and thinking we might be in another bubble. I have at least one flaw to postulate , and it has to do with the rather large amount of student debt outstanding. There will be a day of reckoning for this as well as inflated tuition and professors salaries and legacy costs for colleges and universities. I'm pretty sure John R. Coleman is rolling over in his grave right now.