And hey, I might be wrong but *oh well*. Let’s apply Pascal’s Wager here. If I’m wrong and we drop a bit more than 5%, oh well! I still got to enjoy my house, pool, hot tub, workout room, office, etc for *less* than it would cost me to rent. I can still rent out my place and cash-flow with all impounds included. Over-time my equity will return, but my holding costs are quite low. I’ve lost very little.
On the other hand, if we’re right and Temecula is an area that you desire (*it is NOT for everyone) but you continue to wait on a bottom for years you will find inflation rising, rents going up, house selection dwindling and your money on rent wasted. In five years of holding, I will have enjoyed a significant tax break, a stable place to live and growth in my other investments all while living in a wonderful neighborhood in my dream home.
I’ve made my decision.
Headed out now – we actually have a bit of nightlife out here now also… 😉
