913 Lomita St, El Segundo, CA 90245 – 2 beds/1 bath

It just isn’t logical. 

If I suggested someone rent this 1200 square foot one bedroom house for for $4000 people would think I was crazy. Yet someone was willing to drop $200,000, take out an $800K loan and pay about $4800/month for the privilege of “ownership”. 

You are stupid!

Here’s another ugly lesson in economics: at these levels you start running out of suckers. Let’s say you get another 10% increase in value this year, how many people are out there at $1.1 looking to buy an old small house with one bathroom? $1.2 mil the next year? As we will see in a month even a 1% change in interest rates takes a huge toll on the house of cards holding up the real estate market. 

Maybe I’m wrong. Maybe I should move to Arizona or Oregon. Maybe it’s totally logical to risk that amount of money and spend that monthly amount to “own” in El Segundo. 

913 Lomita St, El Segundo, CA 90245 – 2 beds/1 bath

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s