Advice on RE investment plan

[carlsbadworker]

I am actually thinking about the same thing so I can explain the rational of buying the primary residence first. The primary residence usually has more “quality” requirements and it justifies a higher price point (because you don’t have vacancy issue to deal with).
If you buy an investment first (e.g. condo), then you are hoping that the price will continue to drop for you to upgrade soon. Otherwise, you will be stuck in a house that you don’t like.
Investment comes after current consumption (which essentially what primary residence really is). If after I buy my primary residence, the price drops to a level that is so attractive, then I will invest in the property market. Otherwise, I might as well seek other investment opportunities.

I am not familiar with any tax/interest-rate advantages. So I hope someone would enlighten me what these impacts are.

[34f3f3f]

I’d go with buying an investment property first, live in it or a year or so, then buy a main residence, for two reasons. Firstly, if prices continue to fall you lose less because your initial capital outlay was smaller, and secondly I would imagine, most investment properties such as condos have come down more in price than SFH’s at least in the $600k bracket.

I’d be very interested to know from anyone if now is a good time to start considering looking at investment condos/studios, and what sort of net return one can expect, for a cash purchase in the $250-300k ballpark?

[34f3f3f]

I’d go with buying an investment property first, live in it or a year or so, then buy a main residence, for two reasons. Firstly, if prices continue to fall you lose less because your initial capital outlay was smaller, and secondly I would imagine, most investment properties such as condos have come down more in price than SFH’s at least in the $600k bracket.

I’d be very interested to know from anyone if now is a good time to start considering looking at investment condos/studios, and what sort of net return one can expect, for a cash purchase in the $250-300k ballpark?

[34f3f3f]

I’d go with buying an investment property first, live in it or a year or so, then buy a main residence, for two reasons. Firstly, if prices continue to fall you lose less because your initial capital outlay was smaller, and secondly I would imagine, most investment properties such as condos have come down more in price than SFH’s at least in the $600k bracket.

I’d be very interested to know from anyone if now is a good time to start considering looking at investment condos/studios, and what sort of net return one can expect, for a cash purchase in the $250-300k ballpark?

[34f3f3f]

I’d go with buying an investment property first, live in it or a year or so, then buy a main residence, for two reasons. Firstly, if prices continue to fall you lose less because your initial capital outlay was smaller, and secondly I would imagine, most investment properties such as condos have come down more in price than SFH’s at least in the $600k bracket.

I’d be very interested to know from anyone if now is a good time to start considering looking at investment condos/studios, and what sort of net return one can expect, for a cash purchase in the $250-300k ballpark?

[34f3f3f]

I’d go with buying an investment property first, live in it or a year or so, then buy a main residence, for two reasons. Firstly, if prices continue to fall you lose less because your initial capital outlay was smaller, and secondly I would imagine, most investment properties such as condos have come down more in price than SFH’s at least in the $600k bracket.

I’d be very interested to know from anyone if now is a good time to start considering looking at investment condos/studios, and what sort of net return one can expect, for a cash purchase in the $250-300k ballpark?

[EconProf]

With prices of condos and houses still dropping 1 to 2% per month, plus the usual seasonal slowdown approaching, it is still too early to jump in. But it might be good to scope out the market, pick your preferred neighborhood, and run the numbers on various property categories: condo vs. house, old vs. newer, big vs. small, etc.

When developing pro formas, beware of the first-timers usual tendency to overestimate rental income and underestimate the landlord’s time and expense do it right.

[EconProf]

With prices of condos and houses still dropping 1 to 2% per month, plus the usual seasonal slowdown approaching, it is still too early to jump in. But it might be good to scope out the market, pick your preferred neighborhood, and run the numbers on various property categories: condo vs. house, old vs. newer, big vs. small, etc.

When developing pro formas, beware of the first-timers usual tendency to overestimate rental income and underestimate the landlord’s time and expense do it right.

[EconProf]

With prices of condos and houses still dropping 1 to 2% per month, plus the usual seasonal slowdown approaching, it is still too early to jump in. But it might be good to scope out the market, pick your preferred neighborhood, and run the numbers on various property categories: condo vs. house, old vs. newer, big vs. small, etc.

When developing pro formas, beware of the first-timers usual tendency to overestimate rental income and underestimate the landlord’s time and expense do it right.

[EconProf]

With prices of condos and houses still dropping 1 to 2% per month, plus the usual seasonal slowdown approaching, it is still too early to jump in. But it might be good to scope out the market, pick your preferred neighborhood, and run the numbers on various property categories: condo vs. house, old vs. newer, big vs. small, etc.

When developing pro formas, beware of the first-timers usual tendency to overestimate rental income and underestimate the landlord’s time and expense do it right.

[EconProf]

With prices of condos and houses still dropping 1 to 2% per month, plus the usual seasonal slowdown approaching, it is still too early to jump in. But it might be good to scope out the market, pick your preferred neighborhood, and run the numbers on various property categories: condo vs. house, old vs. newer, big vs. small, etc.

When developing pro formas, beware of the first-timers usual tendency to overestimate rental income and underestimate the landlord’s time and expense do it right.

[patientrenter]

My plan is to wait until the bottom has clearly passed, and then start buying a home every year or so using very little of my own money, if those loan programs persist. If prices go up, I will sell the home with the most gain every year. When the market goes down, I will walk away from the debt.

Why figure out a new idea when an old one may still be available, and can make lots of money?

Does anyone think all the low/no-downpayment loans will be gone when prices start rising again? Barney and Chris sure seem very determined to make sure those loans continue, and any persistent price increases a few years from now might give them enough cover to broaden the programs so most people can scam them again.

[patientrenter]

My plan is to wait until the bottom has clearly passed, and then start buying a home every year or so using very little of my own money, if those loan programs persist. If prices go up, I will sell the home with the most gain every year. When the market goes down, I will walk away from the debt.

Why figure out a new idea when an old one may still be available, and can make lots of money?

Does anyone think all the low/no-downpayment loans will be gone when prices start rising again? Barney and Chris sure seem very determined to make sure those loans continue, and any persistent price increases a few years from now might give them enough cover to broaden the programs so most people can scam them again.

[patientrenter]

My plan is to wait until the bottom has clearly passed, and then start buying a home every year or so using very little of my own money, if those loan programs persist. If prices go up, I will sell the home with the most gain every year. When the market goes down, I will walk away from the debt.

Why figure out a new idea when an old one may still be available, and can make lots of money?

Does anyone think all the low/no-downpayment loans will be gone when prices start rising again? Barney and Chris sure seem very determined to make sure those loans continue, and any persistent price increases a few years from now might give them enough cover to broaden the programs so most people can scam them again.

[patientrenter]

My plan is to wait until the bottom has clearly passed, and then start buying a home every year or so using very little of my own money, if those loan programs persist. If prices go up, I will sell the home with the most gain every year. When the market goes down, I will walk away from the debt.

Why figure out a new idea when an old one may still be available, and can make lots of money?

Does anyone think all the low/no-downpayment loans will be gone when prices start rising again? Barney and Chris sure seem very determined to make sure those loans continue, and any persistent price increases a few years from now might give them enough cover to broaden the programs so most people can scam them again.

[Author]

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