My Unsupported Southern California California Real Estate Analysis :
Extremely low interest rates are a perfect receipt for creating extreme shortages of supply and help create market bubbles. How many folks- especially the older ones are going-to sell out of a 2% to 3% mortgage ? Then as prices increase at some juncture the lower rate loses its benefit because the price increases have the same effect as paying higher interest rates. In my area prices on $550,000 Ghetto shacks have gone from $550,000 to near $600,000 or more in the last 6 months. Bidding wars, purchases waiving home inspections, appraisals and some where the buyers never even physically went inside the property-Virtual Sales. Finally as the inventory shrinks at some juncture you have priced out all but the wealthy or the old people who purchased years ago at prices that were 25% of what we see today. Rich in equity-poor in cash and the young people at some point won't be able to afford them even at a zero % interest rate. The old people-have whats similar to Golden Handcuffs which in corporate was a word meaning the Golden handcuffs were offered by employers to existing key employees as a means of holding onto them as well as to increase employee retention rates. Your held hostage by your real estate unless you sell it and relocate to a lower cost State. A weird phenomena and in my opinion not healthy for future generations of young people who will require two PHDs From Harvard or Yale -MIT or Stanford and even then may not be living in anything but a 600 Sq.t. cold water flat in a ghetto neighborhood.
Hey-Yenta do you think we should move ? Uncle Billy and I kinda like that Florida Mar-A-Lagos Place and there is no State Tax and we can learn to golf. Response: Look you two dummies there is no place for us to go because of my bad knees, hips and arthritis and we are staying here because of the mild weather. And quit thinking about some new hair brained money making project because it gives me a headache. And last year it was stupid talk about becoming wildcatters in some stupid place you guys called the Permian-Basin in Texas and drilling for oil and heck that's hard work and you guys are lazy and summers there are hot as hell and you know-nothing about or oil or gas, unless it comes out of a hose or a can at a local Exxon-Mobile Gas Station.
Further more I don't care if those people in Texas have nothing better to do on Friday nights except-to go to a stupid High school Football Game. I would never live around those uncultured Rednecks- Heck it's hard enough just living with you two. I reply with you New York City people with your culture and museums and plays, always think your smarter then everyone else, and hell Uncle Billy and I would rather go to a High-School Football game with 10,000 excited Texans then spend all day with a bunch of arrogant-self absorbed wanna be people all pretending to know all the artistic-nuances looking at a boring Jackson Pollock Mural Exhibition on Fifth Avenue. And no we don't care if your Sister Graduated From Julliard or directed Broadway Plays. Hell a 12-pack of Bud and a good old American Graffiti Movie beats the best Broadway Play. Yenta: Response: Yeah you two are culturally and artistically retarded and your not going to make it in Manhattan or Palm Beach or Mar-A-Lago- So just accept the cards you were dealt and be happy.
I look at Uncle Billy--See every-time we think we are going to leave this place the Yenta puts a cabash on our plans. Uncle Billy says yeah 40 years of fixing leaking pipes, roofs, late night calls from tenants complaining about something , and nobody wants to pay us rent during Covid-19 and we get no sympathy-it's lonely out here in the West being a small two man shop.
The Yenta says quit bitching and whining you are crybaby's and lets face it you two idiots built this Teenier-Weeny-Real Estate Empire, but what you didn't know was that no-matter how fast it appreciated the better properties that you didn't purchase-because your cheap went up faster than your junk. We called you people Slum Lords in New York and out here they call you low income owners and property managers. So it's a Zero Sum Game, and all you did was chase your tails. And no you aren't going anywhere except to empty the trash, feed the dogs and cats, mow a lawn, wash some cars and be done and all cleaned up by 5:30 PM . Maybe later if you dont end up killing yourselfs by doing something stupid you can watch an-old Humfrey Bogart and Lauren Bacall movie and pretend your living in Key Largo -because thats about as close to the Ocean as your getting. Billy says well I always wanted to learn to Sail and I hear Mar-A-Lago and Palm Beach is a great place to do it. Response No !
Uncle Billy says I feel like Teyve in the Fiddler on the Roof and your wife is just like his wife in the play and always nagging every one. I laugh and tell him OK let's do our chores and we can sing if I were A Rich Man and then once all the candle lighting non-sense is over--We can sneak out to the garage and play poker and watch some good old non-PC correct movies and plan our next money making venture. And not to worry-We will break out of this prison in the next three years come hell or high-water. Billy says I don't know if I will make it another three years. I look at him and say-don't worry about it I will build you a small shrine when I get to Mar-A-Lago and light a candle every Friday evening at 5:30 PM and say a prayer for your lost soul , then I will tell everyone I meet just how you were such a blessing in my life and how much I miss you. Uncle Billy high fives me and says-- I sure am glad to know that you really don't mean what you say about me. I reply with yeah your OK but like Pop says you are a first class PITA. I don't know Florida Law but I will try and sneak your ashes out on a boat and dump you in the Ocean-maybe you will become a fish and pester the other fish for another 90 years.
