I have always been somewhat risk averse. I'm not totally sure where it came from. I generally don't enjoy gambling, I have never bunjee jumped, and I always park legally (no tickets). This tendency is exaggerated when it comes to any kind of financial investing. I suppose I figure that, for all of the hours I spend in a dreary cubicle earning the almighty dollar, I would hate to have any of it spent for naught.
Investing in real estate in the Bay Area has been especially traumatic for me. The dollar amounts of any and every property here are staggering (to me anyway). I understand that I live in a fantasy destination where many people dream of having a home. This is bound to make property scarce and pricey. However, I also have a decent understanding about human nature, interest rates, and such, and sometimes have a hard time balancing my skeptical nature with the real world. I don't want to worry myself out of good investments.
Then I came upon this study today which fans the flames of all my investment worries. According to this study, real estate is overvalued in the Bay Area by somewhere in the neighborhood of 40%. I can't say that I am surprised by this. But I also wonder, for all the cheery, bullish articles, why am I more likely to trust this one?
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