76562Re: [CostaRicaLiving] Re: current state of the real estate market
- Aug 2, 2008What drives up prices is speculation, not home ownership. When someone
buys a home to live, they are thinking of expenses, and do not think of
it as a way to make money, but to have a home.
But, when people are buying properties just to "flip" them, they are
always seeking to raise the price, of course, to realize a gain. This of
course artificially increases the cost of homes. When the bubble busts,
the price goes back down to the price to live, not the price of speculation.
People have been buying properties, not based on how much they are
worth, but how much they can sell them for. This of course is not going
to be possible if you have no money to work with.
just my dos colones
- << Previous post in topic Next post in topic >>