Here in Orange County, home prices are very affordable and interest rates are terrific. Lenders are even beginning to loosen some of their standards and are taking steps toward increasing the kind of loan products they offer. On top of that, lease rates have increased dramatically over the past couple of years, making home buying more and more attractive if not downright affordable compared to rental rates.
For instance; you can find a two bedroom condo in South Orange County for about $250,000. The same condo can rent for between $1600 and $1800 per month depending upon location. If you were to purchase that same home with 3.5% down (can be a gift from relative) and acquired a loan at 4%, your total monthly payments, including, principal, interest, taxes, insurance AND HOA would be about $1720 per month. How does it not make sense to purchase this home?? This does not even take into account your potential tax savings in deductions, which could be around $300 per month. As an investor, you would have positive cash flow. And when home values begin to appreciate (most economists say most likely not until 2013), condos are the first to appreciate and see the biggest percentage increase since they are the most affordable and therefore the most in demand.
I can help you find a great deal and help you determine if it makes sense as an investment. Call me at 949.525.5905.