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Old 08-04-2007, 12:28 AM
 
Location: Bakersfield, CA
40 posts, read 170,076 times
Reputation: 29

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I heard all the time "now is the best time to buy a home"

I live in bakersfield & I do not have a family or anything, just me and only me. Is it a good time to buy a house NOW or wait a little more and if so, how long?

I want to buy a house mainly for investment. Probably live in it for few months and have roommates or rent out the whole house, but with falling home prices and interest rates, is it WISE to buy a house now for investment and sell it later ? Is it possible to actually LOSE money when buying a house and selling it later in a short time? ( i would like to make money, not lose money)

I plan to live in bakersfield anywhere from 1 year to 2-3yrs or more ???

(bakersfield has cheap cost of living but has less options vs LA)
so yeah. question..when IS a good time to buy a home?
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Old 08-04-2007, 05:57 AM
 
Location: California
11,466 posts, read 19,348,947 times
Reputation: 12713
i don't think now is the best time, wait one or two years, there is a lot of loans in default and many more to come, prices will come down even more.
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Old 08-04-2007, 08:57 AM
 
Location: Tijuana Exurbs
4,539 posts, read 12,401,604 times
Reputation: 6280
While I'm not familiar with the particulars of the Bakersfield market, in an average real estate market it would be nearly impossible to recover your costs, (R/E commission, closing costs, higher payments over rent) in such a short time. The scenario you've outlined only works when prices are rising fairly rapidly. You're in the wrong part of the R/E cycle to do this, and your time horizon is too short.

Now if you were planning to stay put for 10 years, and you were getting killed tax-wise, I'd suggest you think seriously about purchasing a home in the next year or two. But you're leaving town soon so you're best option is to rent.
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Old 08-04-2007, 08:59 AM
 
9,525 posts, read 30,473,115 times
Reputation: 6435
Agree with the other posters here. Purchasing property for investment is not a good idea right now, unless you can get the property to cash flow and have a plan to be a long-term landlord. You're not going to make any money in a year even in a normal market.
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Old 08-04-2007, 11:43 AM
 
Location: Bike to Surf!
3,078 posts, read 11,062,838 times
Reputation: 3023
Now is about the worst time you could buy a house. Wait 3-4 years. Don't buy until the volume of unsold homes on the market is low. Sure, you'll have less choices, but what you do get will appreciate in value.
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Old 08-04-2007, 12:07 PM
 
491 posts, read 2,290,370 times
Reputation: 541
Look at the inventory also - there is a HUGE number of homes on the market in Bakersfield right now. Meaning lots and lots of sellers are not going to be able to sell. Meaning prices will continue to slide.

Don't buy RE as an investment for the short term. Just like the stock market - you buy for the long term - buy and don't sell, buy and don't sell, buy and don't sell. That should be your (general) mantra as an investor.

Otherwise you'll be an RE "day-trader" and possibly lose your shorts.
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Old 08-05-2007, 12:23 AM
 
Location: Bakersfield, CA
40 posts, read 170,076 times
Reputation: 29
AWESOME!! Thanks for the replys!!
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Old 08-05-2007, 08:25 PM
 
852 posts, read 3,814,137 times
Reputation: 470
The entire Central Valley has several years for its housing stock and prices to reach a reasonable balance.
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Old 08-09-2007, 02:27 AM
 
Location: Bakersfield, CA
40 posts, read 170,076 times
Reputation: 29
WITH all the incentives that are offered for new homes, do you really think it will be make a big difference buying now vs. waiting 1-2-3 years? (and what about interest rates?) ...[i prob more likely stay here for a while now]
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Old 11-15-2009, 02:29 AM
 
14 posts, read 92,203 times
Reputation: 13
Default Bakersfield Realtor

Nano,

You can contact me for any questions regarding Bakersfield

Jason Thoele
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