Tuesday, December 16, 2008

Can we say affordable housing?

So you have been watching the real estate market for years patiently waiting for it to adjust and then you will pounce on something and buy it! Does that sound like someone you know?
Then as prices keep adjusting they keep making more excuses about the price and the market and everything else that one can imagine. Sometimes those people just like to talk a big game but never do anything but lose lots of money in the stock market.
So if someone has been waiting for prices to become more affordable now would be the time. There are homes, condos, investment properties that are now available that will have positive cash flow from day 1! Does that mean these deals are all over the place? NO! Does it mean that every seller will take 25 cents on the dollar because somebody has cash? NO.
What it does mean is a prudent investor can purchase properties that are going to be great winners long term. Think of it like buying GE stock at the moment (I am not an investment advisor but that is what people are saying).
How much do things cost?
The chart above shows the available properties currently listed for sale in Long Beach and a few other cities in the area. I didn't chart anything more than $300,000 because at that price and below it is less money you would have to put down and easier to find a renter because of the price you would be asking for rent.
Between just Anaheim and Long Beach there are over 1,500 that are under $300,000. Now if you can't even find 1 property between those two cities that meets or exceeds your requirements you might not be someone who wants to purchase property, ever.
Define your requirements
Before you plunge into buying a property make sure you take the time to look at what you can afford. I am not talking about those online calculators. I am talking about meeting with a lender either one from your past or one referred by your real estate agent. If you don't have one let us know here and we will give you at least 2 people to speak with.
Determine how much money you have to put down and save some money for repairs as well. Some of these properties need a little bit of love to put them in shape.
Take Action
Most of all take action. You will be glad you did as you will be one of those people you hear at parties say "I picked up this amazing deal 10 years ago and I still get money every month". Remember it is a long term came not a short one.


krishna kashyap av said...

This was an amazing and important post on making a proper decision to buy a property at the correct time.
I believe their is an optimum time for each type of property to buy.
Because, when you are starting a business you can wait till the rates go down.
Idaho Real Estate

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