Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
This thread started out as an informational link to a news article in Forbes magazine that claims that Raleigh is a good option for real estate investors. Because that is deemed good news, it brought out the regular 'realists' that want to make sure that everyone knows that the "market is still struggling" and that prices are almost surely going to decline more. There are people that admitted that they are "irritated" by the constant RaRa from people with vested interests sharing good news, and this turned into the same old discussion that it is not a smart time for individuals to buy homes. The old standby Patrick.net was brought out in another thread to contradict this thread.
Let's look at this rationally for a minute. Let's say that everyone that says now is not the time for people to buy a home for a primary residence (shelter) is correct and that they follow Patrick.net's advice that they should rent instead. Who are they going to rent from? Unless they are going to live with relatives or under an overpass somewhere, the odds are pretty good that they are going to rent from someone who has invested in real estate. If now is not the time to buy shelter than that implies people that need shelter should rent - which means the number of potential renters should be increasing:
More renters = more demand for rental properties = a good reason to invest in real estate.
One person that keeps arguing that the market is not good for buyers also complains about homes being “rented out to tenants who have no interest in maintaining and improving the homes”. People need shelter – if they are not supposed to buy and renting is not good for neighborhoods, what are they supposed to do?
Please note that investing in real estate does not mean just single family dwellings. It also means multi-family dwellings including apartment complexes which I have no vested interest in since I don't do commercial real estate.
One of the article's criteria for determining good areas for investment was potential population growth which means an increased demand for shelter. If you don’t believe that people are still relocating to this area, look at the number of threads asking about information from people wanting to move to this area.
As for declining prices, this keeps being brought up as a reason to wait to buy a home. Again, if a person is going to wait to buy shelter they most likely will rent instead. An investor who’s primary goal is positive monthly cash flow does not care as much about the possibility that home prices might decline another 10% (if the do) over the next year as long as the monthly cash flow goals are realized.
People need shelter. If they don’t want to buy – great, but most often that means they will be renting instead – which is good news for real estate investors (there’s those dirty words again – good news!)
It appears that any good news that is shared is deemed as some type of propaganda that should be disregarded when all it is is a little bit of good news in a sea of doom and gloom that people are bombarded with these days.
Last edited by Green Irish Eyes; 09-20-2010 at 01:40 PM..
Reason: Edited out reference to deleted post
Sounds like real estate sales are based on:
Location
Individual circumstance
Luck (being at the right place at the right time for opportunity knocking).
For some it might be a good time to buy and for others not.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
