However, the exception is with of our current market where real estate prices are dropping in dramatic fashion. And we don’t know if it will continue to fall or not. It is best to buy in a not so prime location. The price different between the prime and not so prime location is considerable. In this instance if the prices continue to fall as a percentage it will not be substantial in an off prime area. You are not going to lose a lot of money. You started with very little in the first place. And that is the beauty of it; this market allows the average person like you and I to buy. This window of opportunity will not last.
Unlike in the prime area the existing demand will eventually be exhausted and the price will fall until the market bottoms. You stand to lose considerable if you buy now in the prime area before the market turns around. Once the market bottoms then the whole investing scenario reverts back to buying in the prime area. So if you can afford to buy real estate in this market buy in and off prime area. Once the market recovers and peaks you can sell it at a profit and exchange it for a prime area. Because the price different in the prime and off prime location in a peak real estate market is very little.
Peter Huynh
Original Post Date: February 22, 2009
Copyright 2009 by fartingcamel.com
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