Will real estate boom like it did ever again since no one is going to give financing the same again?
Since you make money when you buy, I’d consider RIGHT NOW a boom!! The market will go in cycles like it always has. Financing will be the same for QUALIFIED buyers. My local market hasn;t come down to earth yet. Prices are holding steady for the most part… Its just a matter of time before they come down.
No. I would say that this past boom was a once-in-a-lifetime event. If you look back over the history, the recent boom was unprecedented. In addition, we have a HUGE bubble of debt; a HUGE bubble of entitlements that are unfunded; and we are slipping continuously toward socialism.
Will we see another boom like the last - NO CHANCE!
Mike
I agree with Mike that there will never be a boom like the past one. Especially since lenders SHOULD get back to sound lending and keep the unqualified buyers from getting into homes they can’t afford. But I can’'t help but thibk that people/ banks will have a short memory and start to slip back into their “old ways”. For now, I’m hoping to buy at big discounts… There haven’t been any deals that would cashflow in my area. But I’m sure that will change. There are at least 3 properties in the last 6 months that I would have bought because I THOUGHT they would cashflow. But after learning from the “vets”, I passed on them. They were sold and now they’re all back on the market for the same price as before!
In the case, whats everyones strategy going forward? To just wait it out or keep doing what we have always done just at bigger discounts?
My wife and I just got a house under contract today for our family. We bought it for $20K less than the home-owners bought it for back in 2002. They have to bring cash to closing to get out of the house.
As for the investing side, we are looking to expand and acquire as much property as we can over the next year or two. Our goal is to create an income stream great enough to supplement my military retirement in 9 years. So we’re looking to buy and hold for the long term. Therefore, we’re excited about the large inventory and depressed prices in the current market. Let the prices fall and the market be flooded. We’ll keep our credit looking good. As long as we can still get financing, we’ll keep buying.
I think the strategy is and always should be BUY AT A HUGE DISCOUNT. I think there will be more deals to be had as things get worse. But just remember the strategy and don’t veer away from it,no matter what. I think you should get at least a 30% discount or it may not be worth it. You also want to have enough positive cashflow. Keeping these two things in mind will benefit you during tough times. Good luck.