“I think you may be over estimating the amount of people who can pull 60k out of their ass and go put it down on a home in MM. How many responsible buyers do you know who DIDN’t get a home in the last few years that have 20% down? … besides a few/a lot of us piggies”
There are many people with 150k to buy two of them or 420k to buy 4 of them and a lot more first time buyers that will get in one way or another. Are we denying that there are a lot of houses in escrow in MIRA MESA? Those people got prequalified.
“And finally all of the arguments presented so far assume that there will be no recession, loss of jobs, etc. If there is a recession as many believe may happen, and job losses increase, don’t expect rents to remain at current levels. And don’t expect all the tenants to pay the full amount and on time. In difficult times, families will be living together, taking in roommates, people will leave this relatively expensive area for cheaper places like Texas, and so on. These same factors will also contribute to even lower home prices as well if they play out as expected.”
Good investors build knowlege of this into their game plan.They know we will pull out of a recession and that if they do not get greedy with the rents they will be fine. Historically low rates will work in their favor. They would probably take losses on their money in other markets anyway Many have gotten on the sidelines from the stock market recently or will be doing so soon.They may sacrifice at first, maybe a few years and they probably have positive cash flow from earlier investments to help out.They know that the payout will be good 20 years from now.This is a legitimate pyramid.
Many people on the other hand always think everything is wrong with everything . They are expert fault finders. They exaggerate the negative and are not “I’ll find a way to make it work” types(at least not with Real Estate).
Take the house that AN posted for instance nothing to say you can’t offer less that 300k on houses like that, repair it add a master suite, Up the rent $3OO and have an improved asset.
Oh yeah, another pigg says construction will come to a complete halt, so that won’t ever happen.People won’t be allowed to swing hammers for a while, evidently.
I think one should still pace themselves, probably wait at least until latesummer2008 and definitely write low ball offers, if they are going to write offers, but it is getting a lot closer to being a investor’s market.
