SK has it right. A year of nothing, and then boom! Everything can fly up in your face. The higher the cap rate, the greater the risk. If you don’t want the hassles invest into your demographic, and you might get one extra night’s sleep, but not the yield.
If I were a FTB, I’d stick with renting. The problem is that many are spurred on by the frustrations of buying in this market. The scratch begets the itch. It feeds on itself, and the obsession grows exponentially with the frustration.
Many overlook the costs of ownership, which are the same as they are for investors. Many of my young neighbors seem to be maxed out, just to get into the ownership game. Some now can’t afford a decent car, or nice furniture, or even to landscape their yards. It requires two incomes, even with kids, and many seem to hate their work. Is that a life?
