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Is real estate always a good long term investment?


Is real estate always a good long term investment?

Keep in mind...........

Times and markets are changing!

In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???

This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.

From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!

With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!

For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:

Times and markets are changing!

In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???

This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.

From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!

With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!

For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:

http://www.downtown-san-diego-real-estat...
http://www.brokerforyou.com
http://www.san-diego-for-sale-by-owner.c...
http://www.la-jolla-ca-del-mar-san-diego...
http://www.brokerforyou.com/blogger/inde...
http://san-diego-coastal-real-estate.blo...
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-vi...

For the long-term, yes. Property always appreciates in value in the long term setting as land is a finite resource.

not if the real-estate is at love canal

Yeah I am 23 and met me financee who is invests in real estate its good extra income, a lot of management and organization but its good for your credit and you can always know its your and the equity and everything you won, if you stay anywhere real estate right now is the best investment. I like the investment part but not to be an agent. lol.

not always, but usually. Buying and selling is less risky than renting, unless you really research your tenants.

Remember the real estate crash in the 80's. I've heard that locally real estate prices are dropping.

Yes. Although real estate can fluctuate it will always increase from time of purchase. Finding the right price for the property is very important.

sometimes a gamble. Depending on the location. If you can manage to snatch up a house in an area that near the end of possible development its generally a good idea. If you can catch a "vacation" area for a good deal, that Usually works out. Trying to make money off of the long term investment carries its weight too of taxes, maintenance and possible loss due to natrual disasters (Make sure your insured :P) Its definetally a Gamble though.

we're about to find out - stay tuned

Real estate has two ways to grow in value. As you pay off the loan, you build equity. As the market as a whole fluctuates, the appreciation value may change, but as a long term investment, you are more than likely to appreciate in value (grow more). The other thing Real Estate can do do is provide working income. ex: Rental property. This can cover, say those expenses like a mortgage.

Yes. Real Estate in a great long term investment provided that the property has solid anchors meaning it is desirable, martketable, etc.

Yes. (Until the Chinese put a man in the Moon in 2020)

Once the first hotel is built there the real state prices back home (Earth) will drop very fast.

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