Well, if you can buy a house for 8-10x the annual rent income, then the price is right. OTOH, your house will decrease in value, because of the high foreclosure rates there. Depending on the types of jobs there, which I have not researched, the upcoming recession could result in more job loss, and more foreclosures.
Again, why the interest in rental properties? The housing boom is over?
I hope I am not offending you, but your interest in buying rental property now is like someone wanting to buy Qualcomm in April 2000 (one month after the collapse started). So we are past the peak, and coming down.
Don’t feel bad, I also missed the real estate run-up. I thought this whole thing was crazy. If I’d been smart, I would have flipped properties from 2000-2003. Now it is too late, but let’s look for where we can make money…For now, I am preserving my assets in CDs, but will oil, commodities, gold be the next bubble? Is there enough global liquidity to support another bubble, or are the bubble years gone? Can any asset rise by more than the 5.5% paid by CDs?
