Decline in Real Estate

[JerryCarr]

There is a difference between a speculator and an investor IMHO. An investor is in it for the long haul and a speculator is out to make a quick buck and move on. I think the sentiment against speculation expressed here is valid in the sense that speculation drives prices up beyond what normal market supply and demand for the commodity would otherwise support.

Speculation in BI real estate has the undesirable effects of pricing younger families out of the market and making some people's dream of being able to live here impossible. Despite the initial efforts of the county to shield resident property owners through lower rates and owner-occupant exemptions, higher values will more than likely eventually filter through all that. The folks who bought their home as a place to live and not as an investment will more than likely find themselves paying significantly higher property taxes at some point if home values continue to escalate. Also, the effect on property taxes has a way of filtering down to renters, whose landlords do not get the breaks owner-occupants do. So please tell me again how speculation is good for the average home owner who plans to stay put and not leverage his home like it was a credit card.

Aloha,
Jerry



Edited by - JerryCarr on 08/16/2006 16:40:34