Quote:
Originally Posted by Descant
I agree about investors. I was ready to buy vacation/investments a couple of years ago and backed off. Now I see those places for sale witrh price drops. Many buyers thought they were buying a second home and they would pay for it with short term rental income. They didn't think of themselves as investors and probably many were too eager to buy. Now, or soon, real investores will be buyhing the dip. Making a down payment with a HELOC adds to the problem whem it means the second home/investment may be close to a 90% loan instead of the 70%+ that is common for invewstment real estate.
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Many of the prime properties were bought by groups of investors with cash hoping to get the rental income and price appreciation. I know many of my son's friends bought into these real estate investment groups. We'll see how this all shakes out if prices drop and rentals slow down.
My son almost bought into one of these and I steered him away from them.
I took advice given to me by a smart uncle long ago and passed it on to him, "partners are for dancing"!