Areas that are planning to develop and add new shopping centers and stores are a great place to start research on an investment, imho. i.e. an area that hasn't been overdeveloped, but shows signs that there will be lots of demand in the near future.
Renting vs owning a home and vehicles.
- Thread starter ssj4sadie
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That can be a huge gamble. Dependent on how far out you are projecting.
I'm not saying project out 30 years. I said an area that's developing is worth doing research on.
Depends on the area & what sort of house you need/would be happy with. Why buy something you do not want/doesn't meet your needs just to buy?
Pros & cons to everything & YMMV
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Without getting stoned to death, but where are you going to work on your cars, or simply to keep them safe, if you don't have a dedicated garage, speaking about an apartment? Renting a garage will be pricey. No definitely don't buy if you can't afford it through the lean and fat times, not that shit doesn't happen. As for me only, if I didn't buy back in the 70's, there would no way to afford it now. Buying homes, or having kids is for the young....
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Actually research an area and make an informed purchase? Pft!
Not necessarily related to investment property, but consider trying to determine if there are any huge changes in the community development plan (i.e. new highway, or sewer plant planned for installation, or if any military bases are on the BRAC list) I did some basic research before buying acreage. Things can always change of course, but just finding a nice property and hoping to make money on it is risky. I have yet to purchase foreclosure properties, but that is on my list to do too.
Price per square foot in San Diego is 400+. It was one-fourth of that in Colorado, plus less traffic, pollution, road rage, etc...
Not only that, but moving is just a financial kick in the nads. And moving just plain sucks. I just recently moved into a house that I had built. I still owned the house that I moved from. Once all of my stuff was out, I finished painting and a few other small maintenance items on the old house. My new place was about an hour drive one way so it didn't make much sense to work on the house after work because I would only be able to spend an hour or two there due to the time commuting. I only worked on it on the weekends. It took about a month and a half to get it on the market. You then get locked in to 6% going to a realtor. A potential buyer had the home inspected and that revealed some electrical issues that I didn't know about. I could have had the items professionally fixed or taken money off of the asking price. I was told by the realtor to keep the water and power on, which cost money to keep the air conditioner on. When someone buys the house you have to agreed about who pays the closing costs. Then time off of work to meet for the closing. Not many people have the money to keep this up. Especially after splurging on various items for the new house. Chit got real.
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What? That's what you've been spouting this whole thread, how smart it is to buy, and how easy it is to make money with a house.
There's certainly some value there. It's nice to be able to skip out on all the upkeep.
If you read what I posted early you'd see I don't think people should think of houses as income. I'm talking about how financially irresponsible and stupid it is to pay someone else's mortgage when you're capable of paying your own. There isn't really any risk if you're not an idiot when you purchase one.
No risk? SMH
Maybe you're thinking of some other kind of risk beyond financial? Maybe you pulled a rip van winkle through the last housing crisis? Maybe you have no idea how to estimate total costs of ownership, or.....? There's literally no way to conclude there are no risks unless you suck at estimating them, you're completely unaware of them, or you're just being obtuse.
There's plenty of financial risks, unless you're just whistling past the graveyard when you sign the papers.
No risk is absolutely overstated. Due diligence in market research will mitigate risk to an acceptable level. I do not make hap-hazard real estate investments, and typically research the fun out a purchase before I commit, which may have cost me a little gain due to my delay. I may make slightly less than predicted, but to date, I've been fortunate enough not to lose.
I came out smelling like roses with a ton of cash in the bank ready to buy a house when the market crashed. Not because I'm a magical wizard but because I'm not a moron. A house that cost $100k a few years ago that all the sudden cost $1mil should raise a few concerns about buying. Taking emotions out of the inspection process, looking at community tends, planning well in advance for a purchase, living/buying within your means....these are all things you can do to virtually eliminate catastrophic risks. It's not rocket science but looking at the idiotic decisions some people make you'd think it is.
Everyone I know that was dumb enough to buy in the bubble simply up and walked away from their homes. There wasn't any catastrophic financial repercussions other than an inconvenience of poor credit for a few years. Most used it to improve their situations.
In the end I used the money I saved preparing for the bubble to burst to buy a business and invest in another. I should thank everyone that crashed the economy.
The bottom line is that nobody is losing money renting to you other than the person renting. If the housing market is reasonable at the time that right there should be a sign you're making poor financial choices. Where do all of you renters plan on living when you retire?
well, researching an area is sort of implied lol. I would hope.
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