California Real Estate is known for its great equity growth, but finding a property that you can place little to nothing down on and break a profit on rents in one of these growing areas is a very tough find these days. So many investors are willing to take significant losses just to hope to recoup those losses through equity growth.
The Sacramento Bee has a great article discussing rents in todays market and how they just won't pay the mortgage. The SacBee reports:
"Outside the real estate industry it's hard to find a bigger proponent of homeownership than Scott Syphax, head of Sacramento-based Nehemiah Corp. of America."
"A new report released Wednesday provides fresh evidence of flat rents even as home prices soar. Syphax's advice: Wait it out a year. In that time, he suspects, the market will cool, meaning more homes to choose from and maybe even some bargains. In the meantime, he said, would-be buyers can save more for a down payment and, if necessary, work on improving their credit."
For many this is tough advice to hear because all they are seeing is the market continuing to climb despite all the real estate bubble talk.
"To say that if you don't buy now you'll be permanently locked out might be seen as smart from a short-term perspective, but taking the long view of experience and history there are cycles to everything and housing does not have a special exception," Syphax said.
This is a great article worth reading if you are at all interested in investing in the Sacramento California real estate market.
You can read the full story here.
Source: The Sacramento Bee
