Thinking of buying my first property in Los Angeles is it a good time?

[Hawk]

Hello I am thinking of buying a new home sometime this year I came across some money and will like to invest it in a property I am a first time home buyer and a newly wed I am a bit unsure of what I should do or when I should start shopping for a home.
Here in Southern California a lot of people are losing their homes which are being reposed many sad stories, my main question is is it a good Idea to purchase a reposed home or is that a bad idea or is it better to buy a duplex property, how is it possible to buy another property with out hurting your pocket to much once you re settled in your current property.

Thanks Hawk

[Debbie]

I was raised in Orange County (not far from L.A.) and I still have relatives living nearby L.A.

With that said, I strongly do not recommend buying a property in LA. But if you do, make sure it is not in the "rent controlled" neighborhoods.

I do not know of any nearby cities or specific neighborhoods where you can buy without going upside down.

[Hawk]

Thanks for replying I noticed that now a days even if you rent the duplex rooms
you still have to pay a lot of money to make up for the difference for the mortage I guess buying a 3 bedroom home will probably be best but I was hearing in the news that the home market is very unstable still and home prices will continue to drop till the end of 2008 even 2009 so I will wait. What exactly do you mean without going upside down.

Thanks Hawk

[Debbie]

Upside down basically means the price you paid for is no longer worth that amount.

For example: you paid $100k for a house. It may have been inappropriated appraised for that amount. Then the prices came down to appropriate market. Your house is now worth (and should have been worth) $80K. Hence, you're upside down by $20k and almost no one would be willing to pay anywhere near you bought it for.

I'm not one to explain well but it's the best I can do.

[Hawk]

Thanks that makes a lot of sense it's kind of like when you loose value on a car no one will pay what you paid when it was new because its older. But in the case of a home a home looses value depending in the economy and when your house looses value you don't want to sell it because you loose money on it, and you don't want to buy at the wrong time because if you buy it and the house market drops even more than you will loose money too.

The tricky part is when is the best time to time the purchase just right.


Thanks Hawk

[AIR]

I can't think of a better time to buy, I don't know what the market is like but overall prices are dropping and so are interests rates...

[Burke]

If you are trying to "time" the market, the best time to buy in my opinion is right before or right after prices begin to climb back up. I don't think they are done dropping (especially in parts of CA) but I could be wrong.

You might want to check out some CA specific forums. Here is one I monitor: http://www.websitetoolbox.com/mb/sdcia It is based out of San Diego but they discuss all parts of the state as well as the nation.

Keep us posted.

[wellsman]

I can't think of a better time to buy, I don't know what the market is like but overall prices are dropping and so are interests rates...


I couldn't agree more. I deal with many Realtors around the country and their all telling me that prices have plateaued and that in some parts there starting to climb a little.

So if it were me... I'd buy within the next several months, there's a ton of great deals out there. TONS!!

[Michael Quarles]

Here is the deal... Every market has good deals and every market has bad deals... as investors our job is to find them before someone else does.

BTW... Learn what a good deal looks like before you buy...

The only way you can determine if you have one or not is to interview the neighborhood for value and concessions... Being in the heat of the southern california battle I can tell you there is more money to be made over the next 5 years then you have ever imagined making...

let me know if you need help..

Michael Quarles

[wellsman]

Here is the deal... Every market has good deals and every market has bad deals... as investors our job is to find them before someone else does.

BTW... Learn what a good deal looks like before you buy...

The only way you can determine if you have one or not is to interview the neighborhood for value and concessions... Being in the heat of the southern california battle I can tell you there is more money to be made over the next 5 years then you have ever imagined making...

let me know if you need help..

Michael Quarles

Very true... See I'm thinking the same. Now is when I think is the time to make your moves.

I think the smart investors are the ones that buy when the market is down, and sell when the market is up. Pretty simple right...? Well is the market down? um... I would say so.

My house has went down over 100k in value over the past year, so I definetly think the market is at its lowest point in my area.


GOOD LUCK!!