Real Estate Market outlook 101
Hello, I am currently at Business School in China pursuing a Masters in Finance (penultimate year). I am due to begin my thesis and I was particularly interested in Real estate capital markets and investments. I seek to find out from the forum the hottest areas in this field from both researchers and practitioners and also the general outlook of the industry in terms of job opportunities after business school.
I think, you should google it.
look out for market reports by major service provides. i.e. JLL, CBRE, SAVILLS, DTZ etc to get the broad overview
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I think cap rates are currently low enough around SF/LA that you are losing money by owning rather than renting. I'd say wait it out, but I am certainly no RE expert by any means.
Depends on what kind of mortgage you can lock in. It is OK to be near the 2007 highs, as many markets are above it
10YR Treasury is absurdly low
Depends on what kind of mortgage you can lock in. It is OK to be near the 2007 highs, as many markets are above it
10YR Treasury is absurdly low
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The 5/5 ARM is a pretty sick product for those who are pretty sure they won't be in a house for more than 10 years. From what I've seen, you can lock a rate about 50 bps beneath the going 30-year fixed, and it'll adjust once every 5 years. Even with the max adjustment in year 6, you'll still be better off than with a 30-year fixed. So if you're confident you won't be keeping a house/condo for more than 10 years then I'd go with the 5/5 ARM.
For me personally, prices are so astronomically high that I don't see myself buying a house and then keeping it to rent it out. With the headache and, frankly, negative returns, it's just not something I'd see myself doing, so a 30-year fixed makes no sense for me. Although, I suppose that if the loan is assumable it could make your home more marketable when time to sell if we're in a period of higher interest rates.
I agree with @"DCDepository" in that prices are so high right now that returns are pretty much negative for renting a house. I am also a big fan of economies of scale and one house does not do it for me; it causes management headaches that I would not be willing to take for negative/low returns.
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