Houston, TX - 17.99% "Over Priced"

6 Replies | Houston, Texas

Matthew that's how it works on the coasts.  Not so much in the fly over states.  We don't get the stupid crazy leaps in appreciation, but the drop-offs are pretty shallow if any.  Really just goes flat.

@Mike Kennedy I only buy good, solid properties in locations that have a high rentability factor. I know with my properties that if the market goes down and property values fall off my rents will stay fairly stable because I sussed out good deals and made money on my purchases and that my mortgages and bills will still be paid and I will continue to have good cash flow.

Certain areas of the country have seen higher levels of appreciation over the past 3-5 years and are more likely to readjust if the market corrects itself.

If you are concerned about this perhaps invest in central areas of the country where properties tend to be more affordable and haven’t seen appreciation rise as quickly yet still see good cash flow for amount invested.

as an investor, I dont really get bothered by what articles say. im still getting off market deals 60 to 75 cents on the dollar and the ash flow is great in class A & B areas.

I assume the “consensus” is that Houston market will be 5-30% more expensive a year from now and ZERO people are predicting prices will be 18% lower in a year. 

The author should have educated themselves on “prices” and how anything that sells isn’t overpriced…


Originally posted by @Matthew Crivelli :

Everything in this world runs in cycles. What goes up must come down. I feel people get amnesia when times are good. How long can this bull run last? Not sure. Will prices deflate at some point? Yes. Don't be holding the bag when the bottom falls out. Good deals only. 

Prices might not fall in nominal terms due to inflation.  We could see the price of everything double (including wages), which means nothing doubles.  But it does mean whatever debt you had on your property is cut in half.

My theory is we see something like that and I'm trying to lever up as much as possible before it happens.