I've owned my house in L.A. for almost 6 years- the price in my neighborhood has appreciated substantially. From a purchase price of just under $300K, it has just been appraised at just under $700K. And with MINIMAL investment- all we've done is some painting and landscaping. So for my 20% down- $60,000.00- I've made (on paper) around $400,000.00- minus mortgage, taxes, etc.
The first house I bought in L.A.-in the mid/late-80's- also more than doubled within a few years. I sold it in '90 and rented until '96, when I bought my current house. I realize I was lucky- coincidentally, here in L.A. the real estate market tanked from about '91- '96. Still, from where I sit, it's crazy NOT to buy real estate, especially in Southern California. If you can get a good home in a good neighborhood during a soft market, it's a no-brainer.
Could the market crash? Sure. But I get to live in a great house in a great neighborhood at a reasonable monthly payment- locked in at 6 1/2 percent. And I get at least the possibility of a return on equity far greater than most anything else a non-finance major, with no close relatives on Wall Street, can accomplish in their spare time- at least during a bear market! Not to mention quality of life issues. It's kind of sad to me- reading about some of the people here who seem clearly financially able are renting solely out of fear of some supposedly imminent real estate crash. I think you're all scaring each other. And I don't think good decisions are made out of fear.
Besides, where else are you going to put your money- in the STOCK MARKET??? <g>
Who was it that said, real estate isn't the best way, it's the only way to make money (?) It has proven true, so far at least, in my case. (Now if only I hadn't thrown away some of my REAL estate profits in the illusory, hype-driven,UN-REAL stock market...!) |
