I appreciate appreciation! - Posted by David MacGown

Posted by Mark (SDCA) on April 11, 1999 at 09:14:46:

WEll, obviously I would move to Orange County. Excellent emplyoment opportunities and great real estate deals. (you can make HUGE profits on a little appreciation ie we made 400%+). But you would be 4 years too late. The market has very much turned here in SoCal. We have seen huge appreciation in the last couple of years. We are back in the “bidding war” stage.

I appreciate appreciation! - Posted by David MacGown

Posted by David MacGown on April 11, 1999 at 07:07:09:

If you were to move to benefit from economic trends, which would be the best strategy…

Moving to orange county,ca; where property values have plummeted(as well as the rest of California),but employment opportunities are excellent(buy low,sell high?) which will experience population growth. Which in turn could cause real estate to appreciate… OR… ride the wave of recent years rising values? aka Salt Lake City,Ut

…also, what is the best indication that real estate is going to go up?

Re: I appreciate appreciation! - Posted by Bud Branstetter

Posted by Bud Branstetter on April 11, 1999 at 18:28:36:

In the late 80’s I attended a symposium presented by the real estate school of Texas A&M. They had analyzed the history of prices in Texas trying to determine when prices would come back. They found only two consistent things. One was the volume of natural gas produced. Can’t remember the other one right now but it was off the wall like the natural gas.

To benefit from the economic trend presently is to not have SFH rental property. The affordability for buyers is so good it is best to liquidate rental property. In a cash position you are able to take advantage of bargains, become debt free, or be in a position for buying rental property in the future when the market changes again.

Moving to any particular area of the country to take advantage of local economic is not reasonable for the small guy. Moving is not required either because most places have property that can be bought low and sold high. With large commercial property the regional aspects can be employed but you don’t have to move there to take advantage of the situation.

Re: I appreciate appreciation! - Posted by Raiko

Posted by Raiko on April 11, 1999 at 11:11:51:

Mark is correct. The buyers market is gone here (San Diego, L.A., Orange County). We are back to multiple offers on properties now. Vacancy rate is in the low 1% range. Builders can’t find lots to build on. Environmentalist vs. Developer war is heating up again.
Obviously, money can be made in this market though it is different from 6 or seven years ago when banks were practically giving away REO’s. Let us know if you decide to move to Orange county. Maybe we can form our own local REI brain trust down here.