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Saturday, April 19, 2008 | I would agree with Robert Vallera’s comments that purchasing an apartment and renting a home will produce more cash. The only problem is that here, the speculators, long ago, and at least in two previous “boom cycles” in the past 25 years here, have pushed up apartment prices by speculating for condo conversions.
They don’t produce positive before tax cash flow, and haven’t for years here.
There’s not much real estate in San Diego that makes any sense in any respect. Almost all, true, positive cash flow “investments” are out of state now! That, in great part, is why the speculation was fueled in other states this time around; unlike prior “boom’s” we had only here.
Homes should not be speculative commodities, like everything else (gas, metals, commodities) has become as people look for a quick, easy buck. I like the person he was responding to, V.G’s, take on things.
Probably 40 percent of recent year’s home sales were to speculator’s, who just drove up the cost of living for everybody else that wanted, or needed a home!
How many consider buying a duplex or four-plex first time and living in it for a while? I did and it got me a good, cash producing investment to help me ease into my first “home” — a condo.