Is buying a house now in Cali a fool proof investment?

[Fritzo]

Real estate is almost always a good investment. Plus, you're paying for something that is going to make you money in the future, rather than giving money to someone else every month by renting.

 

[So]

Originally posted by: CRXican
buying is Las Vegas is a better idea

LV prices are out of control too. Buying in LV ~3-4 years ago was a better idea, now, I doubt it.

 

[PanzerIV]

Floridas friggin' real estate prices are going up and up too. The equivelant to my home there in Central and Southern FL is going to run me two to two and a half times what I paid in MS according to the MLS listings I've been looking at lately. Although I hate MS at least the cost of living is cheaper. It pisses me off I have to pay way more for what I already have but at least it's not this God forsaken state so that's a massive plus.

 

[IBuyUFO]

I hope the housing market crashes! It's pure insanity what people are paying for houses these days. I surely can't afford to buy one and I get paid pretty well.

 

[KEV1N]

Your buddy just wants to make a buck offa you. And the right time to buy is when you're ready.

 

[jinduy]

Originally posted by: KEV1N
Your buddy just wants to make a buck offa you. And the right time to buy is when you're ready.

that's what i think too... he's not much of a friend and is always trying to make a buck off people.

 

[SilentZero]

No..but buying in Hawaii is (depending where).

 

[bondboy]

Market's too high now in California. Everyone says it won't (or can't) crash, but prices can only go so high. It's about to reach a point where it's not sustainable. Add increasing interest rates in the mix, and prices WILL drop pretty soon.

That being said, if you can ignore the market and still afford to buy a place AND live comfortably AND hold it for many years, then you'll do fine.

 

[Yax]

The way I see it,

right now, average homes around large cities in CA are around 400K. In the big cities themselves, its much higher. The homes are artifically inflated because, a lot of the investors are people from the big cities who have taken out second mortgages, equity lines, etc to buy two or three homes in the surrounding areas thus inflating the values.

People with average jobs in CA can barely afford the 400K homes with the low interest rates. When the mortgage rates rise above 6.5%, there's no way they can afford it. That's when the home values will have to drop. I think that drop will make alot of investors go into a selling frenzy and it'll cause the home values to drop steeply.

Think about it and don't buy if you feel the rates may rise with the booming economy. If you think the rates will stay low for another few years, then buy now and buy based on variable rates.

 

[Vic]

There are no foolproof investments. You should not buy a home for the same reason that you would buy a "hot" stock, but because you actually want to own your own home.

 

[Yossarian]

my friend sold a crappy condo in Hermosa Beach this past August after living in it for 3 years... $250k profit, bought a beautiful two-story house in Illinois. damn.

 

[LordSnailz]

If you can afford it why not buy? Yes the house prices might fall but the amount you can afford is still the same when interest rates goes up.

I'm sure there are folks waiting for the market to fall and pick something up cheap but there are a lot of people who are waiting as well. The selling price will be the same but with higher interest rates aren't you paying the same at the end?

Or are you banking on lower property taxes and more money back since your interest rates are higher?