Some people may be skeptical now, but most are waiting and expecting R.E. to turn around next year and resume it’s steep upward path. We’ve heard from the NAR that now it’s a good time to buy because we’re at the bottom. Also, I just read about builders who are complaining about the price of materials, and saying that buyers are going to be in for sticker shock if they wait more that a year to buy.
It’s all B.S. … just a marketing ploy to get people back in the market.
I’m no expert, but I’ve been saying for the last 4 years that R.E. has to drop 35-50% from present values, or rents have to double if you want R.E. to make economic sense from an investment perspective.
Unless you’re willing to put down in excess of 50% of the purchase price, you can’t make positive cash flow on properties in Calif. And I’m not talking about just making the payment … I’m talking mortgage payment + utilities + prop. tax + maintenence + vacancy + management fees (if you self-manage, you still have to compensate yourself).
