Conversely, I hope you are able to take advantage of some timely investment opportunities out there. Me? I'm a small-timer with a basic 401k who strongly believes in dollar cost averaging in times such as this.
Never touch stocks individually. Most of my wealth is from, and in, Real Estate, down here in Beautiful Central Oregon.
This period represents a tremendous opportunity. There's so much uncertainty in the market, there's a massive overreaction. People are going to make a lot of money because they were able to cut through the static.
I actually like the idea of dollar cost averaging in the real estate market right now. The leverage aspect of the investment is terrific, as long as you can find renters. $10K down on a $100K property that goes up 5% in value in a year is a 50% return. Just like stocks, the prices are low, probably getting lower, but it's super hard to time the actual bottom.
With the inevitable credit tightening you'll see in the aftermath of the re-regulation of the financial markets, there are going to be many more renters of residential properties. We've already seen downward movement of cap rates in multifamily properties.
The banks also need to liquidate their inventory of homes. They're selling cheap, and you'd think they'd finance the deals if they make money on them.
We bought our first home in Portland in September 2006 with like 3% down. Of course we were one of those people that continued to pay our mortgage despite our home being under water. I moved to Seattle in 2010 for work and we rented our house out. We were finally able to sell it this past Spring and actually made some money on it. Good thing we bought in Seattle in 2014. Prices were absolutely crazy this summer.
i was surprised when i moved down here. Oregon prices are outrageous for homes. I bought my 3 bedroom 2 bath for 82k 0 down FHA loan cause almost the entire county is third world. I couldnt even imagine buying a home in Bend as a single male.
