[quote=gzz]Flyer while I don’t think it is a great time to get a new SD investment property, buying to live is still pretty attractive.
Rents are still soaring with very low vacancies. The inventory and sales rates seem to be trending toward the 2016-2019 milder bull market levels. We obviously weren’t going to have 0.2 month MLS inventory and 35% YoY pricing for long.
The cost to own here is basically the 4.5% interest, 1% tax, and maybe 0.3% for everything else like insurance.
So about 4800 all in cost per month for every million of value. Roughly rental cost. For every 1% appreciation, that’s 10k a year or about 800 a month of reduced cost. A mild 3% appreciation thus means the effective monthly cost to buy a million of SD RE is only about 2300, far below rental cost.
I think oil stocks are an even better investment however. I just can’t live in XOM and TTE.[/quote]
I agree that for you, buying now, especially with the needs of your family, is a good decision. You’ve done your research, and you know it falls well within your financial parameters, so it should be a win for you. That may not be true for everyone, so I hope others who are stretching their limits to buy now are being cautious.
Also agree that we would not be buying any more investment properties now. Actually haven’t since The Great Recession, when it was a great time to add to our portfolio. At that time, we had a chance to cut some fantastic deals when others weren’t, but, unless there is another extreme downturn, we really don’t need to look for any more properties.
