Posted on 01/16/2021 1:01:27 PM PST by thescourged1
The question I have is: Is now a good or bad time to get invested in residential property? At first glance, it looks bad given what we are about to experience starting January 20th. However, with property getting snatched up sight-unseen by those fleeing the cities for way more than it's worth, supply will dry up fast.
With the dollar reaching it's day of reckoning, and with interest rates likely to go up, I'm feeling a sense of urgency on this. Freepers are always a great resource of knowledge and wit, and I'd like some informed opinions if any care to share.
So a renter who bought in 2007 at the top for $300k, and then had a house worth $200k in 2010, why was that better?
The answer is dependent on where you are. In an area with declin8ng population, outwards migration, nope. In Texas, Florida, North Carolina, DC suburbs, yep.
Don’t be foolish.
Yes, it’s so foolish to consider where you are in a market cycle. That’s extremely foolish. /sarc
What is foolish to to put out simpleminded, trite slogans for what is an investment decision that has lots variables and factors.
If you didn’t like my comment it’s ok. Just ignore me, i will do the same for you.
Oh, my! There are 2 diametrically opposed opinions out there. One says that we are going to have massive inflation, so it’s a good time to have debt at low interest. Another says that there is going to be a giant crash and depression, massive foreclosures, and the value of housing will plummet. Good look knowing the answer. I guess what I would say is if you like the place, you think you will live there for at least 5 to 7 years, your job is safe (as much as you can figure!), and the area seems to be getting better with no warning signs that the area might be starting to decline, then go for it. You might put together a check list with the pros and cons on buying vs renting. My own experience is that buying ended up costing a lot. Maintenance is always more than one expects.
However, as Yogi Berra said, “Predictions are hard, especially about the future.”
Good luck
I you cannot evict, do you really want to try it?
Freeman has given you the best advice so far. I’m a successful residential renovator (fix n flips) in Denver (second biggest sellers’ market) and would love to share advice, but we really need to know your long or short term strategy per “buy and hold” (rental), a personal holding you’ll live in, or quick flip. If I were to buy a rental, I’d look at cities in Ohio, Alabama, Arkansas, and Texas. Here in Colorado, the current secret hot spots are Pueblo, Conifer, and Bailey for future growth. Per Phoenix, Freeman might agree that SW Phoenix is going to explode with growth. Also, one good strategy might be to search Craigslist for Wholesalers. They hold contracts on properties that are fixers and/or have very motivated sellers (people in financial, personal, or job related stress). The only drawback is that you must move swiftly on such deals and have your financing in place, and with a lender who is willing to let you take on a fixer. However, many fixers are only cosmetic. No matter what, they will be below market deals! I can help you analyze and acquire any property in any market by showing you the open source online tools that I use, but the key is knowing your exit strategy.
I’m thinking of retiring to Missouri. How are the real estate values? Is weather a beyotch? Conservative neighbors? Pretty places to go and see and campout?
If you don’t want anyone to comment on your posts, maybe try a forum where you are the only one there.
anywhere people are fleeing to from NYC and other leftist fascist covid cities are seeing residential housing prices going through the roof ..
Read later.
You are absolutely right. SW Phoenix is exploding along with outlier towns like Maricopa and Florence. You are also right in that you have to choose your markets for rentals carefully as well. What we are seeing in Phoenix is that prices are appreciating so quickly that it is difficult to find a property that can be purchased at a price point that makes sense ROI wise. It has gotten to the point that in some areas rents are not able to keep up with appreciating sales prices because the appreciation increases are outstripping increases in wages.
Read later.
Giving away money for nothing is better than buying something tangible? I am assuming the person asking the question can find a realtor capable of doing a good deal.
Hahaha - renters don’t have to make payments - you make the call
bump
“So a renter who bought in 2007 at the top for $300k, and then had a house worth $200k in 2010, why was that better?”
And would now probably be worth $500,000.00
Buying is always better.
.
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