PS – one of the things i notice about your posts is that you tend to have trouble differentiating between macro and micro economics. Because Roubini (a.k.a. God) says the whole country is going to go through a 30% median decline, you assume that every single piece of real estate property in the United States of America will decline 30% in price as gospel. =shrug= It’s up to you. And I’ll agree that my San Diego properties are going to lose value over probably the next five years.
But you ignore the fact that other states are not on the same real estate cycle as California. There are other places around the country that are actually rising up in value. So it is possible to buy an investment PROPERTY (not house) in a good market and it will not lose value.
By the way, my time frame is not 3 years. If we’re still around, I’ll let you know how the properties are doing in 2016, which by my calculations should be when the next San Diego boom is (more or less). That is when I will sell. We can compare tax analyses then. 🙂
And if the properties decline in value, so what? It’s only temporary. They’re cash flowing, they’re lowering my taxes.
Here’s the thing – you complain about how hard it is to get rich. Well, real estate is still the best way to do it, even in this environment.
Does that mean buying in San Diego? No!
(dunno if I put enough caveats for you all, but i will leave it at that. i know i’ll get reamed for this later. =sigh=)
