Moving money from stocks to real estate!

[socrattt]

I am in need of some advice. I have been toying with a number of different areas to move some retirement money into a self directed IRA and buy a vacation rental. I am looking for a 1 or 2 bedroom condo somewhere in southern California, but don’t know where to start looking.

I have contemplated areas for long term rentals such as Temecula or Murrieta, but I am a little fearful of that market long term. I have been very pessimistic as many others have, but at this point I have much more faith in real property than stocks. I am learing on a daily basis that the big boys are always 3 steps ahead of the game and when they win that means we lose. No longer can I try to predict what the big boys will do becasue there is no common sense to the patterns in the market.

I have been looking at vacation rentals in downtown SD, but I think that properties are a dime a dozen down there. I like areas like Palm Springs, but that market is extremely depressed as well. North County seems to have some potential as prices have moved south quite well in this depressed market. I know that I am not going to find a cash cow, but would love to find something somewhat close.

Any advice would be much appreciated!!!

[barnaby33]

So you want to invest in Real Estate in SoCal, but you don’t want to lose money. Hmmm good luck! Any area that qualifies as a vacation area in SD is coastal, and still grossly overpriced.

4plexowner always used 8-10 GRM as his yardstick and its a stick I’m comfortable with too. If properties don’t come down to that, then they aren’t investments, they are speculative plays.

You are right to be fearful of Temecula we are entering the tumultuous period not leaving it behind.

Losing faith in the markets is both a healthy and dangerous response. Its as if you think there is some safe sure bet out there, real estate maybe.

The fundamental lesson to learn about the period we are in is that NO investment is safe, not in terms that we are used to thinking. What matters most here and now is liquidity. Return of capital trumps return on capital in insecure times.

[barnaby33]

So you want to invest in Real Estate in SoCal, but you don’t want to lose money. Hmmm good luck! Any area that qualifies as a vacation area in SD is coastal, and still grossly overpriced.

4plexowner always used 8-10 GRM as his yardstick and its a stick I’m comfortable with too. If properties don’t come down to that, then they aren’t investments, they are speculative plays.

You are right to be fearful of Temecula we are entering the tumultuous period not leaving it behind.

Losing faith in the markets is both a healthy and dangerous response. Its as if you think there is some safe sure bet out there, real estate maybe.

The fundamental lesson to learn about the period we are in is that NO investment is safe, not in terms that we are used to thinking. What matters most here and now is liquidity. Return of capital trumps return on capital in insecure times.

[barnaby33]

So you want to invest in Real Estate in SoCal, but you don’t want to lose money. Hmmm good luck! Any area that qualifies as a vacation area in SD is coastal, and still grossly overpriced.

4plexowner always used 8-10 GRM as his yardstick and its a stick I’m comfortable with too. If properties don’t come down to that, then they aren’t investments, they are speculative plays.

You are right to be fearful of Temecula we are entering the tumultuous period not leaving it behind.

Losing faith in the markets is both a healthy and dangerous response. Its as if you think there is some safe sure bet out there, real estate maybe.

The fundamental lesson to learn about the period we are in is that NO investment is safe, not in terms that we are used to thinking. What matters most here and now is liquidity. Return of capital trumps return on capital in insecure times.

[barnaby33]

So you want to invest in Real Estate in SoCal, but you don’t want to lose money. Hmmm good luck! Any area that qualifies as a vacation area in SD is coastal, and still grossly overpriced.

4plexowner always used 8-10 GRM as his yardstick and its a stick I’m comfortable with too. If properties don’t come down to that, then they aren’t investments, they are speculative plays.

You are right to be fearful of Temecula we are entering the tumultuous period not leaving it behind.

Losing faith in the markets is both a healthy and dangerous response. Its as if you think there is some safe sure bet out there, real estate maybe.

The fundamental lesson to learn about the period we are in is that NO investment is safe, not in terms that we are used to thinking. What matters most here and now is liquidity. Return of capital trumps return on capital in insecure times.

[barnaby33]

So you want to invest in Real Estate in SoCal, but you don’t want to lose money. Hmmm good luck! Any area that qualifies as a vacation area in SD is coastal, and still grossly overpriced.

4plexowner always used 8-10 GRM as his yardstick and its a stick I’m comfortable with too. If properties don’t come down to that, then they aren’t investments, they are speculative plays.

You are right to be fearful of Temecula we are entering the tumultuous period not leaving it behind.

Losing faith in the markets is both a healthy and dangerous response. Its as if you think there is some safe sure bet out there, real estate maybe.

The fundamental lesson to learn about the period we are in is that NO investment is safe, not in terms that we are used to thinking. What matters most here and now is liquidity. Return of capital trumps return on capital in insecure times.

[peterb]

I would agree with barnaby33 about vacation rentals are at the coast and the coast is not cheap. Yet. A lot more hurtin needs to happen. IMO.

[peterb]

I would agree with barnaby33 about vacation rentals are at the coast and the coast is not cheap. Yet. A lot more hurtin needs to happen. IMO.

[peterb]

I would agree with barnaby33 about vacation rentals are at the coast and the coast is not cheap. Yet. A lot more hurtin needs to happen. IMO.

[peterb]

I would agree with barnaby33 about vacation rentals are at the coast and the coast is not cheap. Yet. A lot more hurtin needs to happen. IMO.

[peterb]

I would agree with barnaby33 about vacation rentals are at the coast and the coast is not cheap. Yet. A lot more hurtin needs to happen. IMO.

[(former)FormerSanDiegan]

Why vacation rentals ?

Why not bread-and-butter rental properties close to job centers ?

Currently, the coast is still highly priced. I believe that at some point during this recession vacation rentals will get cheap for two reasons :
1. Less demand caused by fewer vacationers (probably already happening)
2. Coastal property markets feeling progressively more of the impact.

In fact, one might expect vacation properties (especially condos) may be the last thing to turn up in the next potential upturn. People need to cover the basics of shelter and comfort first before considering luxury items.

[(former)FormerSanDiegan]

Why vacation rentals ?

Why not bread-and-butter rental properties close to job centers ?

Currently, the coast is still highly priced. I believe that at some point during this recession vacation rentals will get cheap for two reasons :
1. Less demand caused by fewer vacationers (probably already happening)
2. Coastal property markets feeling progressively more of the impact.

In fact, one might expect vacation properties (especially condos) may be the last thing to turn up in the next potential upturn. People need to cover the basics of shelter and comfort first before considering luxury items.

[(former)FormerSanDiegan]

Why vacation rentals ?

Why not bread-and-butter rental properties close to job centers ?

Currently, the coast is still highly priced. I believe that at some point during this recession vacation rentals will get cheap for two reasons :
1. Less demand caused by fewer vacationers (probably already happening)
2. Coastal property markets feeling progressively more of the impact.

In fact, one might expect vacation properties (especially condos) may be the last thing to turn up in the next potential upturn. People need to cover the basics of shelter and comfort first before considering luxury items.

[(former)FormerSanDiegan]

Why vacation rentals ?

Why not bread-and-butter rental properties close to job centers ?

Currently, the coast is still highly priced. I believe that at some point during this recession vacation rentals will get cheap for two reasons :
1. Less demand caused by fewer vacationers (probably already happening)
2. Coastal property markets feeling progressively more of the impact.

In fact, one might expect vacation properties (especially condos) may be the last thing to turn up in the next potential upturn. People need to cover the basics of shelter and comfort first before considering luxury items.

[Author]

Posts