Baby Irvine said:
Irvinecommuter and IHO,
This picture below reinforces what nosuchreality said. LA/OC 's population grew 463k 3.7% from 2000 -2010 while Atlanta population grew over a million 24% increase in the same time period. This is reason why I uprooted my family from Chicago and moved to Atlanta to build my real estate career here. This is the reason why median home prices on the north east part of Johns Creek have jumped 20% since last year.
Open your eyes guys! 8)
As an investor, you need 3x the capital to play in Irvine. In Irvine, with 20% down you are negative cash flow, even at 30% down you are in the negative territory. In Suwanee, GA you are positive cash flow by 18% cash on cash return with today's 30 year mortgage rates with 20% down. This is one way you can tell if real estate is undervalued or over valued.
Irvinecommuter said:
nosuchreality said:
Irvinecommuter said:
I'm not getting it? I'm not the one making comparisons. I get that Atlanta metro county is growing but it's not Southern California...not even close.
Atlanta is growing at a faster rate than SoCal.
You understand that it would be very difficult for growth rate at an established locale like Southern California to be high. Growth rate is usually for rural areas where population is low. 2,000 increase in population for a city of 60,000 means a growth rate of 3.2 percent...a 2,000 increase for a city of 200,000 is 1%
What am I looking at? There is a saturation point at which you can have more people...I mean it's pretty hard to sustain 20+% growth with an established metropolitan area like LA...I mean NY only went up 3.1%...is it going downhill? People should start selling their Manhattan properties because the end is coming. Seriously, it's not different than the GDP analysis. China, India, and Brazil all experienced double digit growth in GDP while the US are between 3-6 even in good times...it doesn't meant that 1) the US is now terrible and 2) that I should move to China, India or Brazil.
I mean, based upon that chart I should moved to Vegas. I mean 42% growth!
See...that's the other issue. I am not an investor in RE. I don't want to be an investor in RE. I just want to get a nice house in a nice area, pay it off, and save up for my retirement. If I was an investor in RE, I would go buy in the IE, Vegas, the Central Valley, all of which would net me a lot of money in the future without me having to fly cross-country. Or I can invest in funds/companies that are in the business of RE investment and not have to worry about the properties themselves.