Real Estate Investing

My pal Les Jones – always on top of the economy, watches the feds, and has some great pics of his kiddos – did it again.  He linked to a site that I love.  Called Curious? Read, the site offered The Top 10 Things We’re Glad the Recession Killed.

In addition to the $5 cup of coffee, bling, and high gas prices, we also celebrate the end of ridiculous housing costs:

When a fifty-year-old, three-bedroom shack located in a bad neighborhood in Los Angeles is valued at over $1,000,000, something is obviously really friggin’ wrong. And when mortgage prices go up, so does the price to rent those properties.

So now that pretty much all real estate across the country has lost nearly a third of its value over the last two years, some of us can go back to fantasizing about someday actually owning a home.

I tend to agree that prices were out-of-control.  It was always amazing for me to talk to people moving to Tennessee from California because one of our 1200 square foot homes would run about $120,000 to $150,000 – depending on the location.  There, the house would cost ten times that amount which made me shudder and KNOW that I could never afford to live in California.

What else has the recession killed?

• It’s killed a lot of business for builders. We hear every month about the latest one to declare bankruptcy.
• It’s killed a lot of jobs for people.  Even Realtors.  A colleague told me this week that they haven’t made their mortgage payment yet for August.  It’s the 27th.
• It’s ruined the trust people generally feel for government. Oh wait… that happened a while back.  (Just kidding, Mr. Fed. Don’t come after me!)
• It’s VASTLY slowed commercial and retail growth.

The good things the recession has killed?

• Overeating in some cases because people can’t afford to go out, splurge.
• Excess spending … I don’t drive as much, I turn off all the lights when I don’t need them, I drastically limit my shopping.
• I drive more safely.  I can’t afford a speeding ticket!

What’s different where you are?