Profile picture for nacho59

isn't real estate a logical and sound investment, when there's so much talk about coming inflation?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 03 2011 - Miami
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (184)

Best Answer
Profile picture for Pasadenan
It is "summer" (The Summer Solstice was 6/20/2011)...

And the price of low octane gasoline with all the taxes and summer additives... is presently $3.72 per gallon in this state.  So as I mentioned earlier, trying to panic people about rising gas prices was not relevant to the discussion at all.

And certainly with all our "smog control" requirements and highway and sales taxes, prices here are higher than most of the nation.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 02 2011
Profile picture for nacho59
I was reading some of the back opinions on this tread of the time when the doom and gloom, pesimistic sentiment was mayority.
I beleived it was a great time to buy and I pulled the trigger. And today I am a happy investor, like so many other that bought at the time that is now starting to be recognized as the bottom.
Bought me a nice 3/2/2 with pool for under 40k in SW Florida (Port Charlotte) a nice and mostly retired people's town, home of spring training for MLB Tampa Rays.
Was a fixer upper but after some dough and work  it was rented quickly for 1100. I wish I could've done it 3 times.
Today, after the reelection of the president, and the continous talk about inflation, talk about printing money and cheap/free money I believe RE investing (properly done) is still the way to go.
Some are even predicting a bubble like price hiking.
Reality is in many cases you can not buy a lot and build a house with the $ you pay for an existing one, plus it is cheaper to buy than to rent.
IMO prices will continue to climb because the combination of foreclosure reductions and the anemic new construction of the last 5 year are creating a short supply.
Few too many buyers for a few too little inventory.


  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 07 2012
Profile picture for sunnyview
Unemployment is still rising in LV according to this article here so that is something that landlords need to consider in the near term. The foreclosure rate in LV also looks like it is still an issue here. Buyers need to be careful and understand that real estate in areas like LV tend to be boom and bust. In the boom, it's great. In the bust, not so great.

Doing careful research and not listening to the spin is the only way to go in that type of market. Know the market before you jump and give yourself plenty of cash flow cushion if you are looking into investing there because rents may feel the pressure of the persistent unemployment after a while. Better safe than sorry.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 06 2011
Moodys Analytics published a research in the New York Times where they check the sales price of houses vs. the rental price of the similar house, and rated in 40 different metroplitan areas whether buying was better than renting.

Las Vegas came in as the 4th Best to Buy a House, with low prices, low interest, and high demand for rentals in good locations.  Verify this by calling the rental companies found in Craigslist "Houses for Rent"

David Cooper
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 06 2011
Profile picture for Pasadenan
"Under CraigsList "Houses for Rent" are the biggest and most aggressive rental agents and companies in Las Vegas" -

I'm assuming you mean there are more houses for rent than listings in other categories, which means supply is larger than demand.

If demand was larger than supply, instead of an excess of "houses for rent" advertisements, you would see an excess of "rental wanted" advertisements.

And they wouldn't need to be "aggressive" if rentals were renting themselves.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 06 2011

Under CraigsList "Houses for Rent" are the biggest and most agressive rental agents and companies in Las Vegas.  Not the single owners trying to rent, but the license agents and companies.  Why not call them, and get the up-to-the minute rental information.  Ask them many days to fill a vacancy, and how are the rents today vs 6 months ago. 
Then, you can decide why Las Vegas was rated the best city to Buy and Rent out a house by Money Mag

David Cooper

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 06 2011
Profile picture for Pasadenan
The only blood running in the streets of Las Vegas is David's

Las Vegas has never had "smart" money, but only "foolish" money... that is why it is known as "sin city USA" (or "Lost Wages").

And that is why David is not able to afford a coat that fits, nor anyone to press his shirts.

So what if June was the highest sales volume on record in the past 6 years in Las Vegas?  All that means is that Las Vegas is a gambling city, and the majority of gamblers there always lose.  If they didn't, the gambling businesses would have shut down.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 05 2011
Profile picture for the_country_hick
David, what is the rental vacancy rate in Las Vegas? When all of the new "investment" properties come online will there be enough renters to handle the increased number of rentals or will rent prices be forced down?

Has the cost of rent increased, decreased, or stayed the same over the past year or 2?

I will not argue about your numbers on ROI today. I simply wonder if there are enough potential renters left in your area to have that ROI continue into the future.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 05 2011
There were 5400+ completed sales in June in Las Vegas, the biggest sales month in 6 years.  So while others keep up the "doom and gloom" the season investors are buying "with blood running in the streets".  With excellant cash flow and 10%+ ROI, the smart money is running into gold and real estate as the dollar plunges, the stock market tanks, and inflation is everywhere except in government statistics.

David Cooper
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 05 2011
Profile picture for Pasadenan
"Amazing that people look at the FED's gift horse
of a 60 year low interest rate   of 5.75% and can
lock it in for 30 years, and buy an REO condo's here in Vegas
" -

Scare tactics from a person that pretends to have a real estate license and claims to have 35 years of experience making money in Real Estate?

Median quote rate on ZMM for 30 year fixed is now down to 4.0%, so anyone that thought they had to lock in their new Mortgage back in January 2011 due to marketing propaganda sells tactics was deceived.

And prices have not gone up either, but have continued to decline.

Gasoline prices are also below $4 per gallon, so those wild claims about inflation there were also misplaced.

The lowest median 30 yr fixed quotes on Zillow were 11/3/10 at 3.97%  It appears the median quote on ZMM may go even lower than that within the next several days.  If one is looking for the lowest 30 yr fixed rates; one may not see another opportunity like this for a while; BUT prices are still dropping across the entire United States, and you still need to make sure you are not paying prices that are still bubble inflated, and that the rent to purchase ratio is in the correct range.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 05 2011
The New York Times did a Rent vs Buy research on 40 US cities.  Based on the 4.5% interest rate for 30 years, Miami and Las Vegas were considered Buy.  Rent for homes in good neighborhoods are in high demand because of all the people losing their house.  Even if unemployment is 15%, there are still 85% of people working.  That is the market investors can make excellant returns.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2011
Profile picture for nacho59
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2011
Profile picture for SoCal_Engr
@ David...

Last year, my 401K retuned 18.9%. Of course, that was an average (one of the high-flyers returned just over 27%). This year? Maybe not as good. But, hardly 1.5%.

Be careful when you're throwing out numbers to make your case.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2011
June house sales for Las Vegas were 5400+, the highest total for June in 6 years.  Positive Cash Flow and ROI of 10% means seasoned investors are actally making money in real estate today.  Another investor friendly city is Miami.  I guess your money market fund paying 1.5% is a little safer, but how are you ever going to retire.

David Cooper
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2011
Pay attention to Derek's statement "You make your money when you buy real estate , not when you sell."  Its an adage that savvy old investors live by. It simply means stay away from the old school of thinking which is buy a house, hope it goes up in value and then you sell.  If you break down the numbers you will see after 30 years of  interest payments, taxes, maintenance and God knows what else, you probably didn't make a $50K profit although you bought the home at $100K and sold it for $150K.  Instead, if you are purchasing the home as an investment, start by making sure it has sufficient equity (can be done by buying below market value) or it is in a location that is sure to rise in value (careful, many people get burned here).

To answer your question - I do think purchasing real estate is a logical investment.  In fact, I'm looking to pick up a couple of rental properties myself. Here is my magic formula - looking for a house around $35-$40K (yes its possible here) and I will rent it for $850/mo.  After maintenance, repairs, taxes, insurance, vacancy, and pest control is accounted for I will end up with about $250/mo. That is an annual return of approx 8%. Not to shabby

Don't forget there are tax advantages to owning property (well at least currently there still is) which can make your yield even larger.

Good Luck!

Melvin
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2011
Profile picture for nacho59

Dow 512 down.....ouchhh
unless you had a short position.

These days RE is more atractive and SECURE

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2011
Profile picture for Dunes....
"but experienced investors salavate at these numbers"

According to who?...

"interest rates that will spike to 6%, 7%, or who knows how high"

and they will spike when?..why?..according to who?
The same Bozos doing the "Interest Rates will rise you better buy"  dance for the last 5-6 years?

Nothing talks louder than the Actual number of Transactions and they certainly do not support a Investors are salivating, multiple offers everywhere, rush to buy, rates are going to spike Reality
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2011
Look at 4.50% interest rate for 30 year mortgage, the lowest in 50 years.  A price decline of 10% from today with a 30 year mortgage will be dollars a month, vs interest rates that will spike to 6%, 7%, or who knows how high.
You can't have it all, but experienced investors salavate at these numbers
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2011
Profile picture for hpvanc
The bond market is signaling deflation again.  Gold is still signaling inflation.  Which speculators will win this time?  Either way there is too much economic uncertainty and still to much existing inventory for housing prices to rise very much.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2011
Profile picture for SteadyState
Derek Zasaretti, "Derek_Zasaretti" says:

" You make your money when you buy real estate , not when you sell."

Clearly a post from someone who missed some classes at school.

Derek, if someone buys a home for $300,000 with a monthly payment (including interest, taxes, maintenance, and opportunity cost of down payment) of $3000, how do you make money by buying alone?

You will say rent the home! But the maximum rent that people are willing to pay is $2000. Now what? How do I make money by buying RE alone - please teach us the magic formula!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2011
Real estate values may go down. They will never totally disappear , unless detroyed . Paper investments can leave you with 0. People buy paper gold, and act like someone will knock on their door and drop off 2 gold bars. That is what they meant by "fools gold". I guess. Real estate will always have a short term value in rent and a long term value in selling. You make your money when you buy real estate , not when you sell.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2011
Real estate is a logical and sound investment period.  Investing is all about creating a diverse portfolio of assets, be they stocks, bonds, metals, property, etc.  Part of the reason we are in the mess we have now is that people put way to much of their net worth in only one asset class and forgot about diversification.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 04 2011
Profile picture for nacho59
I was checking back on this my original post and I am surprise to see a best answer posted that I did not pick.
Can you moderators delete it, please?
It does not make any sense and it's confusing
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 14 2011
Inflation is the governments best kept secret.  The cost of food is skyrocketing. We already know gas is 80 cents a gallon more than last year, rents are starting to rise, and interest rates will not be this low ever again.  With an investment in  real estate, you get income tax write off and the bank becomes your partner.  Less exciting than the stock market and gold.

David Cooper
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 03 2011
Profile picture for Pasadenan
"It died in January and was resurrected in June." ---

Yes, with David's predictions of high gasoline costs, and his opinion that it would raise the price of houses... I had intended to bring it back as soon as it could be checked if his prediction had any validity or not.

And he hasn't changed his tune at all.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 02 2011
Profile picture for Michael Helton
Wow, this was a Necro post!  It died in January and was resurrected in June.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 02 2011
Profile picture for Pasadenan
"...shows the general public the reason real estate agents have such low respect among the general public" -

I certainly hope so, since I'm not an agent... and I hope it even shows more why "fake" agents without a license like the person that made the comment (claiming to have 35 years of selling properties without a license) have even less respect than licensed agents.

We all know what the "sales" industry is; and trying to whitewash it as anything else does not change the nature of the industry.  Sales people make their money off the transaction cost fees (commission...); not off of investment potential nor inflation factors.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 02 2011
Profile picture for Lady Chattel
Sure, prices are down 50% from peak.....but when that "sale" price doesn't have any relationship to incomes then it still doesn't make it a deal.....employment and stagnant wages are main factors.....if the avg amount that a population can spend on a mortgage is $1500K per month then you can't say that $2K a month for a mortgage is a good deal cause it is down from $3K, and in many bubble markets the game still plays on.  The only thing that allows people to buy is these false fronts......the game just keeps playing on.....if we keep repeating the same cycle then we will never end this stupid mess.......but let's be real,  banks don't want people to be locked into a home mortgage for 30 yrs at a low interest anyway which is why they are pushing other products at the consumers right now.......how else can they can continue to generate profit and find new victims?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 19 2011
Profile picture for dacolan
The FED is subsidizing mortgage interest rates at a 50 year low, repeat, the absolute lowest interest rates in 50 reates, and at 4.75% or less for a 30 year fixed loan, they are giving you the investment opportunity of a lifetime, but most people don't GET IT!

Why is the gov't subsidizing interest rates? To manipulate the market by artificially propping up prices. There would be no need for this intervention if current house prices were being supported by natural free market forces. Prices based on a 4.75% gubmit handout are pure fantasy.

Can you guess what happens to house prices in a stagnant economy when those rates do return to historic norms? It appears more people get it than you're willing to give credit.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 19 2011
"Currently, real-estate is neither a logical or sound investment. The reasons are as follows:"

The FED is subsidizing mortgage interest rates at a 50 year low, repeat, the absolute lowest interest rates in 50 reates, and at 4.75% or less for a 30 year fixed loan, they are giving you the investment opportunity of a lifetime, but most people don't GET IT!
.......  Prices are already down 50% from 2006, the risk of them going down another 10% is there.  BUT the greater risk is the FED reacting to the escaslating inflation on commidoties, the dollar being trashed, the cities bonds becoming worthless, and the FED raising the interest to NORMAL.  Say 6.0 per cent 
.....The monthly payments on the 4.75% loan vs. the monthly payments on a 6% loan will be significasnt vs. a risk of a minor price drop of current housing.


The recession in Las Vegas  real estate has ended, but the mass media is still promoting last years news.

David Cooper   Las Vegas Winner
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 19 2011
Related Questions
Hi, Is it too late to invest in Miami?
Profile picture for DavidSiddons
Latest answer by DavidSiddons
June 24 | 2 answers
what are the pros and cons of investing in a condotel? is it easy to sell a condotel?
Profile picture for wetdawgs
Latest answer by wetdawgs
May 12 | 2 answers
land/farm values
Profile picture for James Arrindell
Latest answer by James Arrindell
May 06 | 1 answers
  • Asked by Gina Gargeu
  • In Investing
  • August 27 2013
How do I keep my existing home and buy a another home as my primary house?
Profile picture for Lila Lopez
Latest answer by Lila Lopez
March 04 | 5 answers
Looking for an investment property in Miami offering good rental income for max 250K
Profile picture for Henry Billete
Latest answer by Henry Billete
October 05 2013 | 3 answers
  • Asked by user3928263
  • In Investing
  • August 27 2013
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 1240 NW 181st St, Miami, FL Home For Sale
    1240 NW 181st St, Miami, FL 33169

     For Sale: $124,900

    • Beds: 4
    • Sqft: 1994
    • Baths: 3.0
    • Lot: 1
  2. 9655 Haitian Dr, Cutler Bay, FL Home For Sale
    9655 Haitian Dr, Cutler Bay, FL 33189

     For Sale: $219,900

    • Beds: 3
    • Sqft: 1612
    • Baths: 2.0
    • Lot: 8250
  3. 7601 E Treasure Dr APT 1010, North Bay Village, FL Home For Sale
    7601 E Treasure Dr APT 1010, North Bay Village, FL 33141

     For Sale: $249,000

    • Beds: 2
    • Sqft: 1030
    • Baths: 2.0
    • Lot: --