I am predicting that we will reach a bottom sometime in 2012. There will be a period where prices begin to stabilize as we finish flushing out the immense amounts of foreclosures that will be accumulated in the next years. We will not see noticeable appreciation for at least 7 years. The only people who SHOULD be buying right now are those who plan on holding on to their properties for at least 10 years.
If you are well versed in seller finance and lease option techniques you can buy anytime and still make it a profitable deal by selling the home using these strategies.
My personal strategy is to wait at least another 2 years, buy up what ever I can and hold on to them for a long time. Then sell them on a Lease with an Option to Purchase, also know as, Rent to Own to maximize profits.
Don't believe everything you see on the tube because they will say "real estate is making a comeback" many, many more times before it actually does. You can't really believe anyone who makes a living selling homes when they say that the best time to buy is NOW, I know I wouldn't.
I have very savvy colleagues who are buying up everything in sight because they genuinely feel we are at the bottom. They can definitely cash flow at these prices but I am waiting for the real estate market to come down another 10% to 20%. I would love feedback from anyone who thinks that we are at the bottom already and those who are personally buying investment property.
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