The Real Great Depression

[Susannah]

Quote from bjjtrader:

With the printing presses going mach 10, seems real estate will automatically hit bottom. Holding real assets right now looks like a good idea. Will there be a flight back to real estate as people see inflation spiking? People have to hide their money somewhere. Some areas of the US did not experience a real estate bubble. I wonder if we will see money flow into areas where home prices never really went crazy and homes are still affordable as a huge hedge against the printing presses.

We weren't hit hard here in Texas. If you're really thinking about dipping your toe in the real estate market, I'd think about Austin. It's just a wonderful city to live in. People that are there don't want to leave, people that have been there want to get back there some day.

Things to be aware of though in the Texas market. Our properties taxes are high (we don't have income taxes is why), we have lots of urban sprawl (people are used to living far from things) and undeveloped land, and our residents are in love with "new" (Dallas is the worst, especially since house foundations have a tendency to crumble after about 30 years cause of poor soil and them not building them right in the first place).

So, location is really, really key. Otherwise, your older house will be competing with newer houses for a while and will stagnate in value because people will want the newer one.