natty, I’m not confused. I bought in an area that already had major depreciation like Chula Vista and San Marcos. They were the first to take major drops unlike Carmel Valley, Del Mar, Rancho Bernardo, and other areas that have MAJOR high-end shadow inventory that will soon push average home prices even lower for those areas, in my opinion. People in these areas have hung on longer and are sitting in their homes, milking the system for every drop of free rent.
Sky Ranch was built after the RE crash started, and Lennar corrected the home prices to match current market values. Of course, prices are still dropping, yet I don’t feel they will drop as much as other areas have yet to drop that were built on the RE boom time, especially areas like 4S Ranch.
Let me clarify, that when I speak of investment, I’m not confused. I’m talking long-term investment, not just someone looking to “flip” or as we call now “flop” in the short-term. Everyone wants a quick buck. We bought in an area and community that we thought mitigated against many current RE risks out there, especially in the higher end areas, that, as I mentioned, in my opinion, still have a ways to go in correction to come back to reality. Again, we are thinking long-term, versus short term, as, natty, you may be thinking.
If you had bought property in East Village or other areas, before the boom, wouldn’t you have made money? Areas that undergo GENTRIFICATION can appreciate in value and increase the demand for that area. All it takes is the right plan, execution, and a little time and patience, which, unfortunately, most people don’t have these days.
All I have to tell you, which is a fact, is that homes are still selling in Sky Ranch! Sure, prices will fluctuate, but that fluctuation will be reduced, in my opinion. Once Sky Ranch is built out, and there are no more homes left, except resale, prices will go up. It will be a simple supply and demand, economical process. Sky Ranch is the BEST, NEW community in East County per location, views, home size, lot size, commute time, and many other factors.
PS – I don’t plan on moving anytime soon, because I really like it here, yet I would rather have positive equity than negative equity in my home any time of the day. So, I see less risk of this versus all the other new home buyers who bought during the boom period and are already majorly underwater, 3-5 years out…
