Thanks to frequent contributor Reno Ignoramus for forwarding this link to me. The following is a link to an article that appeared in the New York Times three years ago, to the day. As I read the article I couldn’t help but wonder, “Where are they now?”
If you have few minutes, give this a read. It’s more eerie than a Stephen King story. [Note: the article’s publication date.]
The New York Times > Business > Trading Places: Real Estate Instead of Dot-Coms
Sully
The average house in San Jose, Calif., costs 35 times what it would cost to rent for a year, according to Economy.com, a research company. In New York and West Palm Beach, this ratio – a rough equivalent of the price-earnings ratio for stocks – is almost 25.
Naw, in March 05 it was only 31.25 times. 🙂
smarten
For some reason the system didn’t allow me to post in a timely manner so I apologize for the delay.
Now take your average $2M Montreux or Incline Village home with fair market monthly rent of $2,650-$3,250. Now you end up with values representing 60 or more times yearly rents!
So to our 27 year old oracle friend from Spanish Springs, still think it’s “ridiculous” to rent in a market like this?