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Invest in a California Condo
I live in Southern California and condo prices here were the highest in US second only to New York just two years ago. The areas of Del Mar and La Jolla in San Diego had condos going for a million dollars. Two years down the line, the condo prices are down to 40% and there are no buyers. However, investors seem to be coming out of the woodworks. The sales of new condos in California was up by 4% in the month of August and September 2008 in slightly remote areas like Escondido or Temecula.
A two bedroom, 1000 square feet condo in these parts of Southern California is starting from $88 k. There are all cash buyers that are coming from Puerto Rico other American territories to invest in such condos. They are assured a rental income of at least $1200 or more from these condos.
According to trade and real estate pundits, this is the wheel of economics. The markets become bullish and stock markets rise. The extra cash in the market eases off the lending norms and banks give loans easily. Buying power means there is more demand and viola- the property prices rocket.
Right now, there is not just a correction, but a MASSIVE correction in property rates across the US. There are those who believe the recession will continue. However, many see it as an opportunity to grab a piece of the real estate pie – be it a condo or a single detached home in California.
If you are a buying a home or a California condo for the first time or entering the marketplace as a repeat buyer, the first question you need to ask yourself is that why you want to invest – you may have to wait several years before property prices rise again. In the meanwhile, rental income will be an added benefit however you do end up paying the property tax and making repairs. You will also be responsible for paying the HOA and Mello Roos, though you can include it in part as a portion of the rent.
So, you should weigh your pros and cons before investing. If you would like more information about condos, try www.newcondosonline.com
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