Is real estate a good investment right now? I have a chance to buy the house next door

Bobbieo

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Fri Jan-30-09 07:22 PM
Original message

Is real estate a good investment right now? I have a chance to buy the house next door

for $50,000 which was worth $200,000 before the crash? My current home is mortgage free. Just asking!!!

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sam sarrha

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Fri Jan-30-09 07:24 PM
Response to Original message

1. how nice is it....? got a secure job..?? ask $25,000..

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Phoebe Loosinhouse

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Fri Jan-30-09 07:24 PM
Response to Original message

2. If it is next door to you and you can buy it for that price, DO IT!

If only to have control over what happens right next to you. Perfect investment you can keep an eye on, or have at hand for a family member (younger/older, either way - move your folks in next door or move your kids in to be close to you. It's ALL good!!!

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The_Casual_Observer

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Fri Jan-30-09 07:29 PM
Response to Original message

3. You KNOW it's a great deal. What'ya bragging?

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Bobbieo

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Fri Jan-30-09 07:46 PM
Response to Reply #3

5. Is it really a good deal? If the owner paid $200,000 does it matter how much he still owes on

Edited on Fri Jan-30-09 08:14 PM by Bobbieo

the house?

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The_Casual_Observer

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Fri Jan-30-09 11:54 PM
Response to Reply #5

10. Somebody has to pay off the note before the bank will release the title.

Is the note more than $50K?

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dixiegrrrrl

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Fri Jan-30-09 07:30 PM
Response to Original message

4. Depends.

Actually, we were toying with identical situation.

Can you carry the mortgage without any extra income?
Can you pay cash?
Propoerty taxes an issue?
How is the rental market in your area?
Do you have family or serious friends who can rent from you?
How is your job?
NO job is secure at the moment, and the economy may get much worse.

How do you define "investment" and how long of an "investment " period are you realistically looking at?

We looked at all those questions for our area and decided to not part with the money, tho the price and value were very good.

The come down price looks tempting, I know, esp. in your area.

( I lived in Ca. for a few years until 05)

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CoffeeCat

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Fri Jan-30-09 08:52 PM
Response to Original message

6. Crikey!

Where in this country can you get a house that is worth $200k...for $50k???

The housing market must have really bottomed out in your area.

Most $200k houses in our area have held their value during the past few years (Iowa).

Have you looked it up on Zillow? They estimate current values.

Cool story. Amazing!

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slipslidingaway

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Fri Jan-30-09 08:58 PM
Response to Original message

7. FWIW, and this may or may not apply in your situation...

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=114&topic_id=55289&mesg_id=55289

"...Section 408 of the Internal Revenue Code permits individuals to use a Self-Directed IRA to purchase land, commercial property, condominiums, residential property, mortgages, trust deeds, real estate contracts, private placements, limited partnerships, limited liability company's (LLC's), and many other types of investments with retirement funds held in many common forms of IRAs, including 401k's, Traditional IRA, Roth IRA, and Simplified Employee Pension Plan or SEP-IRA. (see IRS Publication 590)..."

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Warpy

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Fri Jan-30-09 09:07 PM
Response to Original message

8. Got a secure job? How's the rental market? How's the job scene?

Unless all 3 are good, don't go into debt right now.

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Bobbieo

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Fri Jan-30-09 09:23 PM
Response to Reply #8

9. I'm retired and I would pay cash - if I felt really secure about this.

The job market is nil around here and the rental scene is not too great. Thank you all for the imput. I can always depend on DU to come out with the straight skinny.

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Hawkowl

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Sat Jan-31-09 12:21 AM
Response to Original message

11. 75% off is probably a bottom price

I see from your profile that you are in AZ and AZ was on the bleeding edge of the housing bubble. Thus it was one of the first areas to burst and you probably are near a rock bottom price of $50K.

Now as an investment, if you are looking at price appreciation, I wouldn't hold my breath for 5-10 years at least. However, if you are looking to rent it out or even just to use it as a guest house, I don't see much down side.

I'd do it if I was in that situation just to eliminate one of my neighbors!

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drexel dave

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Sun Feb-01-09 03:09 PM
Response to Original message

12. Large, Victorian Mansions are going for $15,000 in Dayton, Ohio

Edited on Sun Feb-01-09 03:10 PM by drexel dave

http://www.coldwellbankerdayton.com/homesearch/1/424790">Check this one out

http://www.coldwellbankerdayton.com/homesearch/resprofile.asp?niay=MLS408043#">Or this one

http://www.coldwellbankerdayton.com/homesearch/resprofile.asp?niay=MLS418643">Or this one, there's only about 10,000 more

They're taking %50 off asking price on a lot of these bank-owned properties.

I'm fixing to buy one, get a big scary dog (quite a few of these properties are in rough areas), and live MORTGAGE FREE here within' the year!

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