In late 2006 when I sold off my remaining property, I kenw the market was going to make a serious downward correction. Which it has, but not with nearly the speed I expected.
While the past four years have shown some real drops in prices, for the most part, I am estimating we have only seen half of the decline I expected. I saw prices returning to 2001 levels – the before the bubble levels. It has not occurred in most markets. And I think that prices may remain very stickey for the next four years.
In some markets(like Tracy in the SF Bay Area) prices have droped back to the 2001 benchmarks, but this is not typical for most of California. At this rate it may take another 4 or more years for property to bottom.
So it may be time to develop a new strategy about when to buy back in. Is owning a home part of moving foreward, or is it OK to spend another 4 years in limbo.
The questions line up like:
1. Is owning better than renting?
2. Will home ownership ever become a financial advantage?
3. Will the FED find some way to keep the bubble inflated and prices artifically high forever?
And for me the answers are Yes, No, and Yes. Owning is better than renting, but it will always cost more, and not just because the FED is going to keep the market inflated for the foreseeable future.
Property will probably not become the rapidly appreciating asset that it was. I think it may be time to seek out another option Buying now is a bad idea, and waiting another decade for things to settle down is just not attractive. Maybe it is time to embrace being a permanent renter.
Bubba, If you included gains from the owner occupied properties you previously owned in the overall situation, would renting still be cheaper than owning? If you had just stayed put in one of the originals, would you still say that owning costs more than renting?
Bubba, If you included gains from the owner occupied properties you previously owned in the overall situation, would renting still be cheaper than owning? If you had just stayed put in one of the originals, would you still say that owning costs more than renting?
Bubba, If you included gains from the owner occupied properties you previously owned in the overall situation, would renting still be cheaper than owning? If you had just stayed put in one of the originals, would you still say that owning costs more than renting?
Bubba, If you included gains from the owner occupied properties you previously owned in the overall situation, would renting still be cheaper than owning? If you had just stayed put in one of the originals, would you still say that owning costs more than renting?
Bubba, If you included gains from the owner occupied properties you previously owned in the overall situation, would renting still be cheaper than owning? If you had just stayed put in one of the originals, would you still say that owning costs more than renting?
Good question. I believe the owning costs would have been about lower than my purchases 10 years earlier. But I don’t see any bubble level appreciation in the next 5 to 10 years.
But you make a good point. The half million cash profit I took from the sale of properties probably weights the equation in favor of owning. There is no appreciation potential in renting.
Good question. I believe the owning costs would have been about lower than my purchases 10 years earlier. But I don’t see any bubble level appreciation in the next 5 to 10 years.
But you make a good point. The half million cash profit I took from the sale of properties probably weights the equation in favor of owning. There is no appreciation potential in renting.
Good question. I believe the owning costs would have been about lower than my purchases 10 years earlier. But I don’t see any bubble level appreciation in the next 5 to 10 years.
But you make a good point. The half million cash profit I took from the sale of properties probably weights the equation in favor of owning. There is no appreciation potential in renting.
Good question. I believe the owning costs would have been about lower than my purchases 10 years earlier. But I don’t see any bubble level appreciation in the next 5 to 10 years.
But you make a good point. The half million cash profit I took from the sale of properties probably weights the equation in favor of owning. There is no appreciation potential in renting.
