Best Place Real Estate

Although a lot of people are taking advantage of this buyers’ market, otheres are unsure about buying a house as they are concerned that prices may still be declining.  It almost seems as if some people are waiting for prices to go up before they will feel good about buying.  However, when prices do go up, some people who are qualified to buy now will be priced out of the market. 

If we all had a crystal ball we would know exactly when to buy and when to sell.  But we don’t and it is nearly impossible to perfectly time the market, whether it is the stock market, the real estate market, or really, anything.

Rather, you are probably better off buying when we are some where near the bottom.  Imagine real estate prices as being represented by a “V” or a “U”.  It would be really nice to buy at exactly at the bottom of the “V”.  The only thing is that we usually don’t know exactly when we are there.  There is no bell ringer who rings a bell announcing we have hit the very bottom.  But, buying when we are near the bottom of the “U” puts you in a much better position.  Yes, prices may go down a little, but they will more than likely start going up again soon. 

Also take the interest rates into consideration.  Prices may go down a little more, but if interest rates go up, it may be more difficult to qualify for a loan.  Even though the price of the home may be less, the monthly payment for the loan could be higher because of a higher interest rate.  So again, some people who are qualified to buy now, may be priced out of the market by higher interest rates.

Real estate is a long term investment.  Most people stay in a home for at least 5 to 7 years.  Rather than concentrating only on prices and trying to buy at the bottom of the “V”, I believe it is better to consider all parts of the formula for a successful investment.  That formula not only includes price, but also includes loan rates and terms, tax advantages, length of the investment, and resale value.  For rental property, the formula also includes rental income and the increase in the income over the years.       

Apparently the Orange County Board of Supervisors is now branding Orange County as the “OC”.   The thing is, I have never heard anyone from Orange County refer to it as the “OC”.  Maybe the Supervisors got the idea from the TV show, “The OC”.  I never saw the show, but I heard that it gave a very false idea of what people here are like. 

We now have departments such as OC Public Works, OC Waste and Recycling, OC Community Resources, OC This and OC That.  It seems they were building on their new slogan “OC: Our Community, Our Commitment”.   While I don’t know about the commitment, I do know that our community calls it “Orange County”.  It is like San Francisco.  People who live in San Francisco don’t refer to it as “SF” or “Frisco”.  They call it “San Francisco”.  When I tell people where I live or where I am from, I say I live in Orange County or I am from Orange County.  I like the name “Orange County”.

The title of my blog site is “Best Place Real Estate”, “because Orange County is the best place in the world to live”.  And that is  “Orange County”, not the”OC”.

My sister who lives up in the San Francisco Bay Area called me yesterday.  Her oldest son is a junior in high school and they are coming down to Southern California this week to look at colleges.  We have so many great universities here that it would be difficult to see them all in a week.

But, what a great investment opportunity for us.  Universities are always short on housing.  Even if they have on campus housing, the students usually like to move off campus after a year or so.  With housing prices down and mortgage rates low, an investor has the perfect opportunity.

 We did this when our daughter moved off campus a UC San Diego.  And, what a great investment this has been for us.  She graduated several years ago and we still rent to students.  Many people worry about the kids destroying the place.  Don’t worry.  They are not bad at all and we have never had a payment problem.  This investment has been one of our best, if not the best!