I bought a 3br/2ba house in Serra Mesa (San Diego) at the height of a hot market back in September 1989 for $130k. I felt lucky because I’d just pulled all my savings out of the stock market for the down payment, just weeks before the big October crash. That house did not increase in value until early 1997 and I sold it for $180k. Now it might sell for $450k.
In 1994 there were major layoffs in the aerospace industry here in San Diego. I was on the list to be fired so I took a big risk and bought a 3 unit apartment building in Hillcrest for $146k. Back in those days the rents more than paid for the mortgage. The plan was to rent my house out, move into one of the apartments, start fixing it up with the lay-off money. Sound plan, except I didn’t get laid off! So, I very slowly fixed up the apartments and just last year sold them for $895k.
In the doldrums of the mid 90’s when NOBODY was interested in real estate I bought a couple more properties and recently sold them for x4 what I paid.
My advice is to sit tight, save up your bucks and wait until we see those dark days of the mid-90’s again (and it will be soon…around 2010). Then BUY when prices are down and nobody is interested in real-estate. You will be amazed how wealthy you will be in 2015 !
Patience, people ! Good things come to those who wait !
