Yeah, you can buy 4 houses in Sacramento. Once your Sacramento houses appreciates enough, you can cash out and use the cashout as downpayment for BA purchase. That way, you are essentially buying BA house with 0 down.
It’s possible that Sacramento appreciates faster in the next few years
It’s ok to own rentals but live in rentals as well.
I agree with @wuqijun. Not all deals go to the cash buyer. I have friends and family who sold their homes and they honestly took the highest bid and probably was not all cash that won out. Agreed, you must be actually pre approved for the loan so that everything runs accordingly and on time. Shoot, my sis inlaws’ sale last month was to a financing buyer and yeah there was a hiccup but I don’t know about you but I can wait for more money (as long as it is coming)…
You can still find a 800k house in South San Jose that has a lot of upside potential. It can be near a Caltrain station although it will be a longer commute. The apple spaceship just opened up, they are building a major development on first and brokaw, and google has plans for a 20,000 job campus by Dirdon Station.
Yes, only stupid sellers would opt for all cash offers with lower price than a financing one… of course if you are all cash and you’re the highest bidder, you win!!!
Most homebuyers buy with financing. Many flippers buy with cash. Just need to be realistic and not require the best deals in the market
Interesting topic.
If I were you, I wouldn’t invest on a high end property. I would buy anything with land and at a lower price.
I understand the talking of some investors. Their homes will be worth this $ much and so on. But remember, the dollar at the future times will be worthless, then you deduct all the expenses, the mortgage, which makes any property what? 2-3 times the price you paid for it. We talk about that when it comes to people and their 401Ks and life insurance. Better than retiring with the actual income, but will that money be enough to beat the inflation or your needs as a retiree?
All this euphoria about real estate being a winner is based on the current job opportunities and whether you anticipate more jobs or not, as well as anticipating a crash, you can’t foresee anything in the future unless you own the famous crystal ball, or you are the one calling the shots on emploment.
I also see the same sentiment I witnesses prior to the last crash. People, with an investing mentality went out of the burbs to invest on the outskirts like Tulare county and Stockton, Sacramento and so on. But they were kind of a little bit too late for the competition and were sucked into the investing frenzy precisely at the worst moment. Some lost their profits from their first and last investment. Why did that happen? Because of the free money going around, allowing people without skin on the game buying for the sake of buying and, using a comment from a poster here, being CA a no-recourse state, they didn’t have anything to lose but lots go gain. And I believe this is starting to be too relaxed now. Watch for free money on the hands of speculators and you can anticipate the next crash.
So, anything to be decided needs and must be based on the projection of jobs to be kept or increasing. That calls for people moving in thus increasing the competition among renters, wannabe homeowners and investors, be these local or foreigners. Any exodus from this area will mean death to the expectations of making it big and rich. Unless you have the rich and famous coming your way.
That’s all.
And frankly with all the NIMBYs and idiot City leaders, supply here will never really grow to the point of ever really satisfying the demand here. I keep hearing about construction costs…oh from last night’s news story about the developer maybe shutting down the Alameda naval project due to higher construction costs. The answer may be prefab again but that is still in its infancy really.
Wait! Not until the respective fees for inspections and whatnot are finalized.
What does this mean?
Inflation devaluing the currency?
The dollar is really a bitcoin in disguise and will be worthless at some future date…???
Money 101: Current monetary system is designed to have inflation, and by definition, inflation means depreciation of money. So holding cash permanent is not a good idea, holding temporarily while waiting for a good opportunity to acquire real asset or value-added business is ok.
SI’ll hold off before I hear back from the original commenter .
Here are a few points till then
Definition of worthless : without worth; of no use, importance, or value; good-for-nothing:
a worthless person; a worthless contract.
Origin of worthless Expand
Figure below shows holding of US treasuries of worthless $(see definition above) by foreign countries waiting for it to become worthless
http://www.cfr.org/content/publications/attachments/images/January15/3%20foreign%20ownership%20of%20us.png
And here is how the US $ fared against the Euro. Worthless I tell you!
Current Euro to $ rate 1.14 - below 1.17
IMO prices are at/near the peak for this cycle ==> This may be true.
I think the bay area could get hit harder than it did in 2008.
Wait for a drop…maybe 20% (that is about what it was in 2001 and 2008)
Trust me, if this happens, many members here jump to buy minimum two homes (SFH,Condos…etc).
20% drop is not that a big deal. Suppose one guy bought a Palo Alto house at 100k 30 years ago, the neighbor bought at 80k 3 years later during the recession. Today both houses are worth 4M.
Do you think the 100k buyer is kicking himself today?
All depends on your time horizon. Investment can wait, but life can’t wait. You can’t buy back 10 years of time. I think it’s not worth it to bet your prom any home purchase on market timing. There’s no guarantee you would be right.
If it would drop 60%, maybe you can wait. 20% is not enough. I see 10% price difference for similar houses within a couple months. Plus, 20% drop could be from the exact top. You need to be statistically lucky to buy at the exact top
30 years is a long time… almost a lifetime of savings and investments for most people…
[quote=“Jil, post:95, topic:2600, full:true”]
As they should. I hope we are all in a financial position to buy multiple homes during the next bust!
Sure there is a strong argument for buying now. But, since RentandVent appears set on renting at current or higher prices, my advice was just to keep an eye out for a drop and reconsider buying if there is one. I think a drop is likely in next couple years.
Neighbor gave that $20k to me who invested in S&P index :), now worth $500k.
