Why You Can't See It
The Worlds Largest Shopping Mall
Where have values gone up 30% in the last year.
International Cost of Living Comparison
Land Prices in South America
I need to earn how much to move there?
Why You Can’t See It
This is Price-Reduced.com where we talk a lot about real estate and a little about life.
For you visual learners, you can go to price-reduced.com and click on the “transcript” category on the right side to read today’s episode. You auditory learners might go there just to learn more by clicking on the links.
Where in the world would you expect to find the world’s largest shopping mall
and biggest Chinatown, not to mention the tallest building in the world? How tall is tall? 828 meters which is 2716.54 feet. As you math wizards know, that is just over ½ mile tall.
Heading north on the other side of Cuba and closer to Miami, China Construction America built the $3.5B Baha Mar Resort
in the Bahamas and is working on a $2.1B contract for highway construction in Argentina.
Speaking of South America, Geoffrey McRae wrote an article on South American Land Prices, including Bolivia, Paraguay, Uruguay, Argentina, and Brazil.
He discusses land cost, risk, return, taxes, and laws regarding foreign investors.
Expatistan is a website where you can compare the cost of living in Latin America
by looking at their map or going down the page to a list of fifty different cities which uses Prague as the baseline. For example Buenos Aires Argentina has a score of 60 whereas the Cayman Islands has a score of 246.
Just so you know, the Expatistan website
doesn’t stop there. Their website says they get information from 227 countries covering 2300 cities. If I wanted to compare Paris France to what the cost of living is in Portland Oregon
, this website has a category for food, housing, clothes, transportation, personal care, and entertainment. It would cost about 9% more to live in Paris than Portland, however Personal Care products would cost 50% less in Paris. Dream a little. Where would you move to?
The National Association of Realtors is a great resource for real estate stats in the U.S. They have an article entitled “Metropolitan Median Area Prices and Affordability”.
Included is a map which has balloon markers for many metropolitan areas. If you click on a balloon it will tell you the median price for that area and percentage change, in value, over the last year.
They also have a link to an alphabetical list of hundreds of cities and their metropolitan areas. They show how much income you would need to qualify for a median priced home in that area
with a 5%, 10%, and 20% down payment loan. In Urban Honolulu Hawaii with 5% down, you would need to earn $189,899. In San Jose California you have to earn $ 335,524. and in Decatur Illinois it would take $23,140.
Want to know what the price reduced picture is like across the U.S.? According to Zillow
14% of all U.S. homes for sale in June reduced their prices. In San Diego it was 20% of all homes had prices reduced in June compared to only 12% the same time last year.
Price reductions or not, the average U.S. homeowner saw their homes value rise 8.3% over the last year.
If you want short updates on the U.S. economy and other interesting facts, sign up to receive email updates from “The Bowtie Economist”, Elliot Eisenberg, PhD. He calls his updates “70 Words on the Economy. Daily
I Don’t See It
I may be looking for something and my wife, Patti will say “it’s in the closet.” Well, it may be but I sure don’t see it.
Or when I ask where something I want for lunch is, she will say “in the refrigerator.” Now, I would like to think my eyesight is good enough and my concentration long enough, that I could find what I was looking for. Some days I am equal to the task. Other days those items seem to be using a cloaking device to make them invisible.
So, what is really happening? Why can’t you see it either?
A variation of that is called “Functional Fixedness” which was proposed by Karl Duncker
in the 1930’s and discussed in the Harvard Business Review. We see an object based on its common use, not how we could creatively use that object in other ways. When the Titanic ran into the iceberg, did you know there was a way more passengers could have survived. Floating nearby the sinking Titanic was an object estimated to be between 200 and 400 feet long. A gigantic, or you might say, Titanic sized life boat. If it was available to use, why wasn’t it? Who would think to use the very object that the Titanic ran into, and was causing it to sink, as an object of safety rather than danger.
Whether in real estate or in life, we need to recognize we will have blind spots, things we don’t see or pick up on. We also need to recognize that the thing that is causing us such great pain or danger, may actually also be the life raft that provides us safety or life changing benefits down the road.
The sometimes painful path to home ownership can lead to a roof over our heads and become a source of financial security with the passage of time.
Thank you for listening to Price-Reduced.com and always remember, financially speaking, “When it comes to real estate, the best time to buy or sell, is when you don’t have to.