Today’s Bargain = Tomorrow’s Fools Price
We are waiting for 20% correction in the particular area where we want to buy. The correction might be steeper than that but we will buy to own for a long time so we could would ride out the rest of the downward trend. There are micro forces in this particular area that we think will prevent it from going down as much as other spots. The rents in that area are currently about 1/2 the morgage of the home. We need it to even out much more than that.
There are other areas in SD that I would not buy even at a 30% correction as I think they are more vulnerable.
The way I see it, these people are sideliners:
— People who would normally be moving up but have decided to stay put.
— People who would would buy a vacation home but are waiting.
— Speculators and landlords who see the market cooling and are pulling out.
— People who sold and are now renting.
— First time buyers or people entering a market (moving, etc) who decide to wait.
So, even though a person owns a home, they can still be called a sideliner.
