JOURNAL: What Makes a Home Valuable?

[BoyRacer]

JOURNAL: What Makes a Home Valuable? → globalguerrillas.typepad.com/glo … uable.html

This is some counter-trend thinking that might help:

It appears that in the US, the fall in home prices has hit a temporary bottom due to copious amounts of government support and a halt in foreclosure sales by banks. Soon (months), the government support will end and this glimmer of stability will generate a stampede of banks to the exit. Further, strategic defaults will continue to rise as the business sense of the middle class matures beyond the naive.

However, all of this volatility masks a more important shift: the need for a home to be a source of value creation and not just an empty box. As D2 (the second great depression) meanders on, incomes will continue to drop, costs will continue to rise, systemic shocks will create shortages, and security will decline. In this environment, the factors that contribute to the valuation of a home changes.

Old model: Location, location, location. Basically, is the home located in a great school district? Is it within commuting distance to city? Is it close (but not too close) to public transportation (to the extent that is available)?

The problems with this model of valuation within the context of a long running depression and ongoing collapse are legion.

there is more

[bob3367]

I’ll tell you makes a home valuable, happiness.

[BoyRacer]

@bob3367

I’ll tell you makes a home valuable, happiness.

I suppose you are right