When will real estate be a good investment?

[Draco]

I've always rented, but been curiously watching the market. Portland still seems a bit overpriced, but looking around other parts of the country; Orland, Phoenix, Vegas, housing is half of what it is in Portland. Zillow has 4BD 3BA 2000sqft 2 car garage houses in Vegas that sold for $400k at the peak and is $86k now! I think thats probably a $400/mo mortgage? I mean can they go much lower?

Getting me thinking of looking at buying a house eventually in Portland or even relocating to a new city where I can afford something extravagent. At those prices I should be able to live in it, or rent it, or sell it someday and make money. Prices have gone down a ton, how low can they really go?

Anybody have thoughts on buying a house or getting into real estate? I have a lot to learn in the field.

 

[3RA1N1AC]

i would suggest steering away from the "extravagant" and just getting a fair deal on a house you can afford. if the object is to make a bunch of money quickly, housing might not be the best idea right now, but for gods sake, take the government rebate while you still can

 

[PapaG]

I'd buy a ton of houses and them flip them.

 

[barfo]

I would suggest dragging a refrigerator box into the woods. If you cover it with plastic bags from the grocery store it will last all winter.

Except now they've outlawed plastic bags! :MARIS61:

barfo

 

[MARIS61]

If you are renting, right now is the best time to buy in the last 40+ years.

 

[maxiep]

It's a good time to invest from the debt side (meaning interest rates are low), but not from an equity standpoint (the market hasn't hit bottom and you may not make money or break even upon selling). If you're not planning on moving for 5-10 years, it's a great time to buy. You might go temporarily underwater, but it won't matter if you're not selling. In the horizon I outlined, you'll come out ahead. If you're looking at a short-term investment, I'd continue to rent.

 

[EL PRESIDENTE]

Location, location, location! value add!

 

[EL PRESIDENTE]

Its a good time to buy if you want to lock in a long term fixed rate and have cash for a downpayment (20%) and a rock steady source of income and are willing to stay in the same area for an extended period of time.

 

[maxiep]

Its a good time to buy if you want to lock in a long term fixed rate and have cash for a downpayment (20%) and a rock steady source of income and are willing to stay in the same area for an extended period of time.

This is a better way of saying what I was trying to get across in my post.

 

[EL PRESIDENTE]

Other than equity you build I dont see much as an investment....maybe more of a tax shelter than anything. I guess after 30 years you can have the freedom of being a homeowner.

I personally wouldn't buy in a place like vegas unless you are all cash buyer. Certainty would not move there because the housing is cheap unless you like vegas but then again it's only fun on the strip. rest of the city is hell

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