A new goal of mine maybe within reach

[dustdevil28]

I have decided to look into purchasing property back home in Nevada. As it stands right now Nevada is number 1 in the country for forclosures and as I've reviewed the housing prices near where I grew up I've seen a notable drop in prices keep going and going.

Right now I'm hoping that this is a good investment for me as I'm pretty sure the economy will bounce providing me a pretty good bump in the lands worth when it does, so by the time I retire I can either sell the house for a notable profit, or I can move there and enjoy my retirement without the hussle of monthly house payments.

I have often lamented the money I spend on rent here in the DC area. I love my apartment, but it would be great if all the money I spend just to stay here on a monthly basis went towards actual ownership.

I think I've covered most areas pretty good on this transaction, but I was just wondering if there was any advice you guys might have since I am a first time buyer and I'm hoping I'm not overlooking anything.

Thanks

-Zach

[snowman]

I looked into this, too. A few tips:

1) Look at the neighbourhood. High rates of repo will mean lower prices when the market does restabilize. You might be better off paying a little more for a house in a neighbourhood that has had fewer foreclosures.

2) Prepare for the long haul. Don't assume a time frame for recovery. You may have to wait one, three, or ten years to get the return you want. If you can't afford to stick it out that long, don't get in the water.

3) Share. If you look around, you may be able to find a few friends whom you trust to form a group of purchasers. This mitigates risk, and cuts down on maintenance costs, although you do see a dimunition in return.

4) Remember. Old snowman laid these tips on you. When you're rich, he's a complete fan of Gibson's Silver Label Whiskey.

[dustdevil28]

Snow,

I appreciate the tips and the time you took to give them to me. As it is though, I closed on the house I bought last October. She's a real beaut, brand new 4 bedroom, just over the hill from my home town, and a place that is sure to take off should the housing market ever recover in Nevada.

All in all I'm not too concerned about the market though. I got a good deal here, I can afford to wait and it works out better for me if I do anyway.

-BB

[snowman]

I got a good deal here, I can afford to wait and it works out better for me if I do anyway.

The key to a sound investment strategy.

[michiganmoon]

One thing to be careful of, but in Michigan if you buy a shortsale house, the seller still has a year to come up with the money and reclaim the house... It might be different in Nevada.