Buying now is better than having purchased in 2005.
You’ve dodged the initial decline, good for you.
You have an awareness of how bad things may get.
As long as you have a plan to deal with it, I see no problem.
BTW – I own a house in SD still. Sold my personal residence, but kept a rental property near the coast). I have about 50% equity (well, maybe 45% now) in it. It cash flows and I plan to hold it or replace it with other SD property in the future and continue to own something along the SD coast at least until I can retire there in 20-25 years. I contemplated selling it, but I would have guaranteed myself a ~20% hit due to selling costs and capital gains taxes, as well as depreciation recapture taxes. Plus I am lazy, and it is mostly a no-hassle situation.
