Deflation and Real Estate…
I just joined Peak Prosperity and read Chris Mortenson's article on deflation. This has been a concern of mine for the last year. The reason is because I'd like to buy some real estate but don't want to be underwater within a few years. I'm in Arizona so prices are already 50% below the peaks set a few years back. The questions is, should I buy a home or some land now, or wait a few more years?
Gold, guns and other hard assets I understand and am gradually accumulating, but I'm not sure about real estate…
From what ive gathered the current housing recovery is pretty much a head fake and has further to fall. Great article written on the subject back in Feb called "Unsafe Foundation of Housing Recovery." Type it in the search and it will pop up.
Hi, welcome to the site.
What part of AZ do you live in? If you live in or are buying in the Sedona or Flagstaff areas, which have water, will be better bets than anywhere that might have difficulty getting water. Arizona land with good water rights will be priceless in times to come.
If you plan on relocating here are parts of ththis site, like the Relocation USA group, may be of interst to you.
Thank you very much for that lead. I just finished reading part 1 and 2. Thank you again. I've read between the lines (WSJ?) about the banks holding back on the actual number of REO's and this article just reinforced my suspicion–plus some. Thank you again very much. My subscription to Peak Prosperity is already paying off…:)
Thank you for that link Wendy. Wow, Peak Prosperity just keeps on giving, and it's only day 2 of my subscription…:)
My wife and I relocated to the high-desert part of Mohave County Arizona from San Diego last August. We researched our town for nearly 1.5 years and made 2 visits before moving. Our water comes from an aquifer and our sheriff is on the list of those refusing to support any unconstitutional gun laws. We love it here and feel very safe. And we are just hours away from our families in San Diego.
It wasn't an easy move but seemed absolutely necessary if we wanted to live the American Dream, and maybe blaze a trail for family later on.
The wind up here can be brutal–our first try at a vegetable garden got destroyed in a week–but offers a ton of reliable renewable energy to power a well and home. For now we rent a fantastic home with a great desert view and continue to look at local real estate to buy. There are a lot of homes here that boast their own wells…
Hey Rick- You're very welcome. Im a phx native and watched that city explode with growth over 30 yrs, thinking it was normal to have that type of growth. Very glad to hear that you have your own water source, maybe a rain catchment system as a back-up too to add to that resiliency. I joined this site last summer-its addicting. When you get a chance, click on the prepare tab and it will take you to sister-site Resilient Life. Endless resources there on sustainable living. Also, I bet you will find more resources/articles on real estate/housing by entering key words in 'search' as well. Glad to have you here, have a great day!
If you want to relocate you can refer in our real estate marketing plan for more information. And you can choose your realtor to assist you.