What Real Estate "bubble"?
Everyone points toward higher interest rates as the determining factor in slowing down of house appreciation, I say watch the employment figures.. AS long as there are jobs, the American dream is ":owning" a house. I rememeber buying and selling in a 12% interest enviornment not to long ago, and you still could make money. ADD to this all the investors who gave up on the stock market and the newer interest only loans, and housing is in really good shape
David Cooper
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[ Edited by woodsong on Date 05/23/2005 ]
Employment figures is a lagging indicator whereas Interest rates are a leading indicator. While there is no evidence that interest rate hikes bust a bubble, if it exists, it does slows down the rate of appreciation and also slows down the turnover of houses. But I do agree that you can make money in any environment as long as you know what you are doing.
Another driving force in Vegas and Florida is the people buying homes that do not need to find employment. Our market is being driven by retirees and second-home buyers. The jobs here do not justify the price increases we are seeing. What does justify it are the mulitfacets of the Las Vegas market.
...cash flow...
[addsig]
Start with UEZs (urban enterprise zones) as they have been targeted by the State for growth....
Marty - if you are looking to make an investment on property- it would be wise to buy pre-construction. Pre-constructionsells for less than what the actual property is worth....an absolute benefit if you plan to flip the property and turn a profit. Plus everything is new, so there will be no maintenance/work needed. Good luck boy.
I stopped buying in NJ it is the worst market that I have seen! Even 1989 was not as bad as 2004. Be carefull...very carefull. The only properties that true investors are buying are to resell ASAP. I would like other professional NJ investors to comment if possible. !
The deal days are over in NJ except for some war torn areas of Camden. I am waiting to sell my last property and then head to the beach for a swim.
Quote:
On 2005-05-05 10:51, tressa1973 wrote:
Marty - if you are looking to make an investment on property- it would be wise to buy pre-construction. Pre-constructionsells for less than what the actual property is worth....an absolute benefit if you plan to flip the property and turn a profit. Plus everything is new, so there will be no maintenance/work needed. Good luck boy.
If anybody knows of preconstruction sales going on anytime within the next 1 year in South Jersey I would greatly appreciate this information (location, builder, etc.) unfortunately my budget limits me to condos/townhouse or anything under or near 300k.
I find it hard to believe that you cannot find a GOOD deal in Central NJ. Is this true, even if you find an investentment with very good Cap rates, AND NOI ??
I know of someone who is looking to leverage up to a 15-20 unit bldg, and he is selling at 6 unit with GOI of 72K/year, with anual expenses of approx 25k. It is probably going on the market for $620- $650K. Would this be worth looking into, just based on those initial #s ?
clynj...What kind of price range are you looking for ?, Area? Other requirements ?...If you drop me a line...with your requirements, i can look for you. Post a reply, and i can leave my info for you..