07-25-2006, 02:21 PM
Here is John's article; Sorry it was in the bulk box.Which I agree on btw.
How come everyone blames the front man? I guess thats the same mentality that got Bush elected.
The Grass-Shack Money Machine
For most of us our homes represent the biggest chunk of our personal wealth. It is our biggest chance to increase equity. That equity gives us options that we wouldn’t otherwise have, such as taking out a second mortgage to send the kids to college or help them with a down payment or take the money and run.
We live on an island where land is scarce; development rationed by the government and outside investment almost a constant.
If you take a snapshot of any moment in the real estate market, there’s always good news and bad news. When you look back, you see a cavalcade of bad news, or at least what appeared to be a bad news at the time. The bad news at the end of the World War II was there was no housing to buy. The remedy: Development all over Hawaii. Which turned into bad news, because there was a fear that Islands were being overdeveloped. The remedy: Limiting development. Which turned into bad news, because home prices soared. The remedy: Affordable housing. Which turned into bad news when the Japanese stopped buying and all housing got more affordable, meaning everybody’s property values started to stag.
In retrospect, of course, there was good news along with the bad. Hawai’i’s burgeoning real estate market enriched two generations of home owners. Even at the height of the Japanese boom, there must have been someone who went home and said, “Honey, break out the good Scotch. We just sold the house for a million five and we’re retiring in style.”
If you view your home as a long-term investment, it will always pay off. The long term history of Hawaiian real estate has shown that it’s better to start than not to start at all, because that’s how you build wealth.
by; John S.Rabi
Edited by - punamom on 07/25/2006 20:19:52
How come everyone blames the front man? I guess thats the same mentality that got Bush elected.
The Grass-Shack Money Machine
For most of us our homes represent the biggest chunk of our personal wealth. It is our biggest chance to increase equity. That equity gives us options that we wouldn’t otherwise have, such as taking out a second mortgage to send the kids to college or help them with a down payment or take the money and run.
We live on an island where land is scarce; development rationed by the government and outside investment almost a constant.
If you take a snapshot of any moment in the real estate market, there’s always good news and bad news. When you look back, you see a cavalcade of bad news, or at least what appeared to be a bad news at the time. The bad news at the end of the World War II was there was no housing to buy. The remedy: Development all over Hawaii. Which turned into bad news, because there was a fear that Islands were being overdeveloped. The remedy: Limiting development. Which turned into bad news, because home prices soared. The remedy: Affordable housing. Which turned into bad news when the Japanese stopped buying and all housing got more affordable, meaning everybody’s property values started to stag.
In retrospect, of course, there was good news along with the bad. Hawai’i’s burgeoning real estate market enriched two generations of home owners. Even at the height of the Japanese boom, there must have been someone who went home and said, “Honey, break out the good Scotch. We just sold the house for a million five and we’re retiring in style.”
If you view your home as a long-term investment, it will always pay off. The long term history of Hawaiian real estate has shown that it’s better to start than not to start at all, because that’s how you build wealth.
by; John S.Rabi
Edited by - punamom on 07/25/2006 20:19:52