temeculaguy, I think your addiction to “renting” sounds more like your addiction to saving money and seeing it grow. I can see why you wait and see what will happen this fall/winter. You might see another leg down, you might not. Only time will tell. Like everything else in this universe, the amount of undershoot will probably resemble the amount of overshoot. So we might see even more decline. However, my view of buying RE is along the line of buy and hold and dollar cost average. I will never sell any property I buy and I will only buy primary residents. I’m currently renting a 2 bedroom apartment in Mira Mesa, an area where some would be considered “the ghetto”. That the lowest I can see myself paying for a place to live. I will be buying my first modest ~1300 sq-ft house sometime this year that should be within a couple hundred of the rent I’m paying for an apartment. I will be able to continue to save and invest as much as I am doing now, but I will be living in my own place. In 5-10 years, when the more desirable places hit bottom, I’ll be renting this place out and move up. I’ll rinse and repeat until I live in my dream home. I think it’s a great feeling to have someone paying you more than what you’re paying in mortgage. That’s why it’s so critical for me to buy a place that’s cheaper than rent at the start, because after 5-10 years, it’s almost a certainty it’ll cash flow positive. As long prop 13 is there, I don’t see why I would ever sell.
