Re: Gas on the home fires
Value Hiker
2/23/2012 12:16:24 PM
There are employees who lived 50 miles away from the office, those days they either work from home 3 days a week, or they have to find another job closer to their houses. Gas price does limit the flow of workforce.
Re: Gas on the home fires
Value Hiker
2/23/2012 12:12:28 PM
My 4-runner is collecting dust in the garage. I am driving my Accord more and more often. When the oil price was under $2 (It seems a long long time ago), the situation is totally reverse. It is strange how the gas price can change one's intepretion of his favorite car.
We always underestimate repair and maintenance costs, including the ongoing expense of keeping the grass cut or the snow shoveled. I thought I lucked out once because I had a house with a bunch of soaring pines in the front yard -- and no grass, just wood chips. But you had to refresh those chips once a season. And it was not cheap.
We need more natural-gas powered commuter trains.
Re: Gas on the home fires
John Jordan
2/23/2012 11:38:17 AM
I live in Orange County, NY, about 50 or so miles from New YOrk City. It is an attractive affordable alternative for those that work in the much more expensive Westchester County or Manhattan markets. However, with gas prices skyrocketing, those commutation costs will rise and will make the move to Orange County much more expensive. I think if prices remain high, it will kill some deals and delay others from closing while buyers wait and see if high prices at the pump are here to stay.
Re: Gas on the home fires
Phoenix
2/23/2012 11:25:51 AM
That's true. If the gas price is one of your indicators on whether or not you can afford to buy a house that means you will have to think twice. What are the other indicators we can use to judge whether we are in a position to afford a house or not?
Re: Gas on the home fires
AskAsa
2/23/2012 11:24:07 AM
I think gas prices just have an impact on location: even people who can afford a 40 mile commute one way may resent spending all that money on gas each week if they can find an equally acceptable property 10 miles from the office.
But if someone is pinching pennies down to the price of gas, you're right--forget real estate.
I have ranted about this before but the appraisal system is idiotic. The reason I say this is I have been re-financing and my bank has made me get three different appraisals (I only had to pay for one). They are all over the map, and the characters that are the appraisers don't seem to really have much clue on what they are doing.
But why does the bank need three appraisals? Maybe cause they know the system is broken? Or maybe because if they get three different ones, they can pick the number they want? It's absurd.
Re: Gas on the home fires
Street Smart
2/23/2012 11:06:28 AM
I want the housing market to pick up as much as the next investor, but I can't help but think that someone whose budget is that sensitive to rises in gas prices shouldn't be buying. There are so many unforseen expenses that come with home ownership, I think it's best not to stretch oneself too thin. That is, after all, how we got into this mess to begin with!
Re: Gas on the home fires
AskAsa
2/23/2012 10:55:24 AM
My sister sells real estate, and she will concur that the appraisal issue is the biggest thorn in the side of the residential recovery. Some reasonable valuations have to return to the market. If you wonder why prices keep falling, just point a finger at the appraisers.
The blogs and comments posted on Investor Uprising do not reflect the views of Investor Uprising, PRNewswire, or its sponsors. Investor Uprising, PRNewswire, and its sponsors do not assume responsibility for any comments, claims, or opinions made by authors and bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
Tweet This