Thread: Investing 102
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Old 02-14-2018, 12:23 PM
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slow4dr slow4dr is offline
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Always interesting to read your posts Greg.

I have been thinking a bunch about the local housing market (SoCal) lately. I am in no position to buy right now so it seems like the best time to watch from a safe distance. Prices in my area are above 2006/7 levels with a decent amount of inventory for single family homes. I've had a couple friends recently purchase houses and a few have popped up in my neighborhood over the last year. One of which sat empty for 9 months before being sold. Sell price was within 5% of original asking.

I can't for the life of me imagine buying a house right now at these prices. Even IF I was in a position to buy. For you guys in the real estate business what are you seeing personally? First time buyers on the rise? Mostly investors with cash deals? Are prices trending up or down in your area?

What prompted this post is someone close to me that has a few rental properties is looking to buy right now. I fully respect him and most previous financial endeavors which made me wonder, "What does he know that I don't?". Maybe he's just more of a risk taker than I am. His History of such things would beg to differ. He's always been on the conservative side of things so it seems out of left field from my perspective.

He's looking at $300K condos that will likely produce $1500 in rents. That alone should be enough information to make a "NO" decision.
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