Housing is a local market.

Don't let his graphs scare you. Make the decision based on what you know about your finances and the local market.

Buying housing can still be a good investment, or it can cause you to lose any hope of being financially secure. It depends on the market, how you buy, and what you plan to do with it.

E.g. It's probably a very, very bad idea to buy a small home in [link|http://realtor.com/FindHome/HomeListings.asp?locallnk=yes&frm=byzip&mnbed=0&mnbath=0&mnprice=0&mxprice=99999999&js=off&pgnum=1&lnksrc=&fid=so&stype=&mnsqft=&mls=xmls&areaid=45405&poe=realtor&zp=45405&sbint=&vtsort=&sorttype=&typ=1&x=51&y=13|45405] with the idea of selling it for a quick profit. (There's dozens of houses for sale there for less than $25k.)

How comfortable are you in living with people who keep long hours, may like loud music, may have housekeeping issues, may be tardy paying rent, etc.? I'd personally be worried about issues like that in the situation you describe.

Keep in mind that many people don't like to buy houses that they knew were rentals because they have a reputation for being used hard and not lovingly cared for. There also may be tax issues (a rental is a business so you can deduct costs of repairs, but that may trigger things when you sell) that you may need to consider.

Another thing to consider is the commissions and fees that you'll (or the seller, but it's in the price) have to pay to buy a place. You'd need good appreciation to make that back and not be in the hole after only 2-3 years.

If the numbers look good to you, and you're able to tolerate the social challenges, and the market looks good for rentals, then don't let the story change your plans. Just go in there with your eyes open.

My $0.02. Good luck!

Cheers,
Scott.

Post #257,588 by Another Scott 6/2/06 7:12:25 PM Reply	Housing is a local market. Don't let his graphs scare you. Make the decision based on what you know about your finances and the local market. Buying housing can still be a good investment, or it can cause you to lose any hope of being financially secure. It depends on the market, how you buy, and what you plan to do with it. E.g. It's probably a very, very bad idea to buy a small home in [link\|http://realtor.com/FindHome/HomeListings.asp?locallnk=yes&frm=byzip&mnbed=0&mnbath=0&mnprice=0&mxprice=99999999&js=off&pgnum=1&lnksrc=&fid=so&stype=&mnsqft=&mls=xmls&areaid=45405&poe=realtor&zp=45405&sbint=&vtsort=&sorttype=&typ=1&x=51&y=13\|45405] with the idea of selling it for a quick profit. (There's dozens of houses for sale there for less than $25k.) How comfortable are you in living with people who keep long hours, may like loud music, may have housekeeping issues, may be tardy paying rent, etc.? I'd personally be worried about issues like that in the situation you describe. Keep in mind that many people don't like to buy houses that they knew were rentals because they have a reputation for being used hard and not lovingly cared for. There also may be tax issues (a rental is a business so you can deduct costs of repairs, but that may trigger things when you sell) that you may need to consider. Another thing to consider is the commissions and fees that you'll (or the seller, but it's in the price) have to pay to buy a place. You'd need good appreciation to make that back and not be in the hole after only 2-3 years. If the numbers look good to you, and you're able to tolerate the social challenges, and the market looks good for rentals, then don't let the story change your plans. Just go in there with your eyes open. My $0.02. Good luck! Cheers, Scott.
Post #257,591 by inthane-chan 6/2/06 7:29:05 PM Reply	My idea is to rent to a subculture. Foriegn exchange students. I've gotten to know a few of them, as well as their home situation, and they are neat, orderly, and quiet to a fault. It's kinda scary how different they are from the typical student... When somebody asks you to trade your freedoms for security, it isn't your* security they're talking about.*
Post #257,592 by Another Scott 6/2/06 7:55:01 PM Reply	Look out for the Gaijin Smash!___________________________:-)
Post #257,605 by boxley 6/2/06 11:34:43 PM Reply	after the sweat and curry sinks into the wallpaper you will only be able to sell to subcultures, reminds me of a dutch joke my brudder told me Dutch Doctor want to improve his house. adds on a room, builds privacy fence, new rof and extensive garden. Turkish neighbor see's same and does an exact copy. Dutch Doctor asks him how much the Turk thinks the Turks house is worth. Turk sez about 20k euros more than yours. Dutch Doc puzzled sez they are exactly the same? No sez the Turk, I live next to a Dutch Doctor. think about it. thanx, bill Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free american and do not reflect the opinions of any person or company that I have had professional relations with in the past 50 years. meep
Post #257,617 by tuberculosis 6/3/06 5:18:06 AM Reply	Check out zillow.com Nice way to check lots of comps. [link\|http://www.blackbagops.net\|Black Bag Operations Log] [link\|http://www.objectiveclips.com\|Artificial Intelligence] [link\|http://www.badpage.info/seaside/html\|Scrutinizer]

Welcome to IWETHEY!