Comments on: Three Factors that Limit Real Estate Appreciation http://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/ Learn, Network, Invest Sun, 12 Feb 2012 02:59:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Nadinehttp://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/#comment-56074 Nadine Wed, 16 Apr 2008 07:22:13 +0000 http://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/#comment-56074 You bring up many thoughts that are totally new for me. You bring up many thoughts that are totally new for me.

]]> By: Ken Hickshttp://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/#comment-56041 Ken Hicks Tue, 15 Apr 2008 08:47:22 +0000 http://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/#comment-56041 I don't think I would want to buy a house near a $10/hr market, unless I shipped workers in from far away. I won't go into details. Common sense in business/liability would tell you even $25/hr is low.Lack of water in an area sent one of my properties sky high. I don’t think I would want to buy a house near a $10/hr market, unless I shipped workers in from far away. I won’t go into details. Common sense in business/liability would tell you even $25/hr is low.

Lack of water in an area sent one of my properties sky high.

]]> By: Overland Park Real Estatehttp://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/#comment-56037 Overland Park Real Estate Tue, 15 Apr 2008 02:07:31 +0000 http://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/#comment-56037 Great write up Jim. Very informative and covers some of the bigger pictures that a lot of people forget to look at. Great write up Jim. Very informative and covers some of the bigger pictures that a lot of people forget to look at.

]]> By: louie lelaurinhttp://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/#comment-56028 louie lelaurin Mon, 14 Apr 2008 16:55:34 +0000 http://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/#comment-56028 I just returned from Texas searching for investment properties. The 4th reason appreciation is limited is because of the high property taxes. If Texas lowered their property tax rate I believe you would see an increase in appreciaition because then the "numbers" would work better, more investors would invest and consequently prices would go up. Law of supply and demand. I just returned from Texas searching for investment properties. The 4th reason appreciation is limited is because of the high property taxes. If Texas lowered their property tax rate I believe you would see an increase in appreciaition because then the “numbers” would work better, more investors would invest and consequently prices would go up. Law of supply and demand.

]]> By: Three Factors that Limit Real Estate Appreciation | The Long List of Odysseus Medal Nominees | Realtors and real estate, mortgages, lending, investmentshttp://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/#comment-56024 Three Factors that Limit Real Estate Appreciation | The Long List of Odysseus Medal Nominees | Realtors and real estate, mortgages, lending, investments Mon, 14 Apr 2008 15:44:52 +0000 http://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/#comment-56024 [...] Three Factors that Limit Real Estate Appreciation, by Jim Watkins. [...] [...] Three Factors that Limit Real Estate Appreciation, by Jim Watkins. [...]

]]> By: Joshua Dorkinhttp://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/#comment-56013 Joshua Dorkin Mon, 14 Apr 2008 04:12:16 +0000 http://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/#comment-56013 Gregory - The post was written by Jim Watkins . . . lets get his feedback here. Gregory –
The post was written by Jim Watkins . . . lets get his feedback here.

]]> By: Gregory Bainhttp://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/#comment-56007 Gregory Bain Sun, 13 Apr 2008 23:48:31 +0000 http://www.biggerpockets.com/renewsblog/2008/04/13/three-factors-that-limit-real-estate-appreciation/#comment-56007 Joshua, I can't tell if you are serious or joking with this explanation of the importance that geography plays in value. What good is a home if the "day labor" can't afford to live there? What good does it do to build where there is no water, or, lacks the infrastructure to get the water, electric, gas and jobs? What good is a HOW if it is near impossible to collect when defects are discovered? What good will a home do anyone if there are no jobs to support the cost of it or at least have geographic qualities that bring in tourists. A well built house will last longer than the average human life span. Rehab of such a home in a good location will better suit most home buyers looking at new construction. Landscaping and those little add ons that make a house a home are BIG costs that need to be presented to a buyer before they sign on the dotted line. And, if you want a warranty - there are at least three that will back your purchase right down to the guts of heating, plumbing, and even electric for a lot less than the hidden cost attached to a new construction. As for the cost of union labor, we call it a living wage. If you don't know the costs associated to the job - don't get involved in the project. Joshua, I can’t tell if you are serious or joking with this explanation of the importance that geography plays in value.
What good is a home if the “day labor” can’t afford to live there? What good does it do to build where there is no water, or, lacks the infrastructure to get the water, electric, gas and jobs? What good is a HOW if it is near impossible to collect when defects are discovered? What good will a home do anyone if there are no jobs to support the cost of it or at least have geographic qualities that bring in tourists.
A well built house will last longer than the average human life span. Rehab of such a home in a good location will better suit most home buyers looking at new construction. Landscaping and those little add ons that make a house a home are BIG costs that need to be presented to a buyer before they sign on the dotted line.
And, if you want a warranty – there are at least three that will back your purchase right down to the guts of heating, plumbing, and even electric for a lot less than the hidden cost attached to a new construction.
As for the cost of union labor, we call it a living wage. If you don’t know the costs associated to the job – don’t get involved in the project.

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