Is this a good time to invest in real estate?

Similar questions: time invest real estate.

This is an Amazing Time to Purchase Real Estate This is an AMAZING time to purchase real estate as an investment, but not to rehab and sell; rather, purchasing as a residence or as a rental property (long term). The rates are low and the prices are close to bottoming out. Rentals should do well for some time since many of the victims of foreclosure still need a roof over their heads and will not be able to purchase a home for several years.

The main challenge right now is obtaining financing. Even folks with good credit are finding it hard to get a loan.

Well, the bloods in the streets, but I don't think it is time yet. Here is what I look for. If the Median house in the area you are looking to invest is less than 3 times the median income, it could be time.

Right now in Los Angeles, the median income is about $80,000, which means the median house should be less than $240,000 for it to be a good time to invest. Right now in greater Los Angeles, the median house is about $420,000. That means there is quite a ways down for the market to go.3 to 1 is a traditional measure in Los Angeles.

When I bought my house, I needed 20% down and 3 to 1. I can easily make my mortgage and have a life without going into further debt. Any more, and the monthly would be hard.

Any less and the house would not be big enough. Usually what happens in Los Angeles is that Median home outstrips the 3 to 1, then prices stabilize until inflation brings incomes up to that 3 to one number. A few months after that happens, the Real Estate Market begins to move again.

Further, I think the interferiance both candidates plan in the Foreclosure market will make the dip in housing longer lasting and in the end will make more people lose their homes. When you artifially inflate the market by reducing the supply (like keeping houses that should be foreclosed off of the market), you make the cycle of reaching 3 to 1 take longer (with more inflation necessary until the number is reached). As painful as it is, those who could not afford to buy houses need to move out of the way so that the market can re-adjust prices to the point where the natural forces of the market can take over again.

Once that happens, more housing will be built (causing employment), more jobs will be created, and balance will return to the market. Good god, I sound like a republican here. Oh well, truth is what it is..

1 I disagree. There is a long way down to the bottom. A long long way.

I disagree. There is a long way down to the bottom. A long long way.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.