I completely agree with SD Realtor that you need to know the market before you buy. I was not planning to make an impulsive purchase. I was evaluating different options.
the big picture is that coastal California will lose tech jobs because young techies cannot afford any decent homes especially if prices stay high. That will have a devastating negative long term impact on California’s economy.
you are not offending me. I welcome sharp critiques and different opinions.
my argument is that Uncle Sam is printing dollars like a drunken sailor. Why keep all my assets in dollars ? I hold some $$$ in foreign bond funds, foreign equity funds and gold funds.
I am not worried about the value of the house over 20 years. Dallas, Houston, Indianapolis have bad real estate markets. They have kept pace with inflation with little appreciation. Essentially I am hoping to get some schmuck to pay my mortgage (at least most of it).
If I was making a bet Texas should have a good job creation record with its pro-business climate.
i was looking to buy a small home/condo and rent it out. the idea is that the rent pays the mortgage. i have not completely worked out the math from taxes/maintenance/collection agency (if i need one).
The idea is to purchase apartments/condos in large metropolitan areas like Dallas where the price/rent ratios are not high compared to coastal California. Dallas is not immune to a recession. I do not see any speculative excess built into its real estate market.
I am not against oil and gold investments. I own a gold mutual fund. I believe in diversification. Having all of your hard earned money in cash seems silly if you get hit by inflation.
