Former Bergen county commercial real estate developer has now completely disinvested in NJ.Sold all my properties but still have my NJ RE license and sell the occasional golf course or office building.
Am holding all cash,and a lot of it in foreign currencies as the dollar is going down,and plan to only buy real estate in Waikiki where I am relocating to after the bubble bursts.With America's debt-ridden dollar-collapsing bubbles economy on the brink of collapse,foreign real estate will be a lot safer and is sure cheaper.
In some ways I agree with you. I think it is very risky to get into rehab projects right now and look to sell them for a profit. However I think right now is the best time to purchase Investment property if you plan on keeping it long term. With interest rates rising, but not too quickly, housing prices are falling. You can still get a very good rate and a better than asking price on a property. In a year or less from now you will see much higher rates and even though prices may keep falling it wont balance out to what you would pay now. 20 or 30k on a lowered purchase price may change your payment by 20 bucks but a 1 or 1.5% increase in rate can change your payment by 100- 150 bucks a month. I dont think there is a need to worry about short term vaule. the concept is to buy and hold the properties. Having rental income cover the monthly payments and put some positive cash flow in your pocket monthly. This mkaing it so you have not really paid anything for the property over the years. Then selling for a profit down the road when the property has appreciated to you making the profit you desire.
Housing proces are a roller coaster. they go up and down but overall they do rise. If you look from year to year there may be big jumps or small up and down with the value. However if you look over a decade the prices tend to have almost always risen. Usually only in areas that were decent and have become run down do the values drop and not return. That is only because the area has become depressed not the property itself.
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