Get out of real estate now!
Several months ago my wife and I were on one of our walks and we happened on a duplex for sale. I grabbed one of the info sheets on the pole outside and began reading. Shock hit! This very average building was for sale for $350,000.00! It was built about 1 year before for something like $180,000.00. I decided to run the numbers on this property. The payments on a standard 30 year loan were about twice what it rented for! There was no way that you could double the rent and still find tenants willing to pay that much. There was no way to get a profit out of this property as an investment. I tried everything that I could think of to find a way to make out on this property. This is-to me-a sign that real estate has finally hit the wacko level in our area.
Now the news is saying that house sales are down. I wonder why?