Early remember that the reserve reqt I told you about was for us and we were doing it with Aim. It may vary with others.[/quote]
Yes SD Realtor. Noted. I’m sure the rules probably differ between various companies and also other areas.
flu,
I totally agree with you that the biggest issue seems to be actually being able to find good properties.
Absolutely you’re right about the CV area. The returns aren’t high in that area at all. Of course you have the capital appreciation potential, but I’m not buying for Capital appreciation really. (in one aspect I guess I do want to buy before I think prices will continue to move up).
I do think prices are near the bottom and I’m QUITE confident that prices in Coastal So Cal will surpass prime prices in the future. It could take a decade or longer but it WILL happen.
Plus rents are high in desirable areas and I don’t really see that changing at all.
I do know most people buy investment properties only for the cash flow potential but our goal, as explained as a bit different. We’re certainly not going to force a purchase if we can’t find anything or buy something that doesn’t make sense.
But I do believe in 15 years property prices here close to the Coast will be very expensive again and interest rates will DEFINITELY be higher. Let’s be honest..they can’t fall much lower.
So it seems to make sense in our situation where we can easily afford the mortgage payments and ideally would like to have a place paid off in 15 years. Any possible capital appreciation potential is just icing on the cake.[/quote]
let the truth be known… Flu doesn’t have enough money to be able to consider most of CarmelV as investment property…:)
No seriously, I would love to be able to pay cash for some speculative property in CarmelV…But my pockets aren’t that deep (…yet, if ever)….So I cannot afford to just let a property sit with 0%-3% gain now and wait years for capital appreciation (if any). IF my pockets were deeper, I would take a bigger gamble on SFH’s in CarmelV versus attached communities. I feel while the attached communities have come down in price, i’m not sure if we’re done yet. Contrary, for SFH, I’m not seeing that much of a price drop in some of the choosier areas…
I guess one day, I can convince myself I need a bigger house with more garage space, and then do something with my existing primary, which hopefully will be free and clear in a few years, based on my current plan…Not that I’m in particularly hurry to pay that off either.
