California RE Market - How Do Other States View It?
Is there an allure for out of state investors to get into the California market? I know that CA properties hold their value for various reasons, but it appears we are at a point in the current cycle where it makes more sense to build rather than buy into a cap rate in CA.
[{"id": "cylk8a3", "text": "I am no real estate expert, especially when it comes to commercial or high end stuff, but I do know that markets that rise the hardest also drop the hardest. It seems we are at the top or near it at least and who knows when the next step in the cycle will be. Unless you have hundreds of millions sitting around and need somewhere to park it, I believe there are better markets to look towards. \n\nBuilding definitely looks better than buying but that's only if you can get the land for a good deal. Comparatively speaking, cash flow is going to be harder to come by as well. Again, I'm no expert and my views may be flawed, but that's how I see it. ", "replies": [{"id": "cyn0x0h", "text": "I agree with you realestateuniverse. The original post assumption that \"CA properties hold their value\" isn't supported by any measures known to me.", "replies": [{"id": "cynalnb", "text": "The land is valuable, there is no doubt about that. That means the price will definitely come back up given enough time after a downturn. I just don't think it is the best market unless you have 10mm+ just sitting around. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cyqzcl1", "text": "Not sure what market you are in but CA commercial real estate has not decreased and didn't take a hit like the residential side.  Yes their was alot of vacancy created with the economic downturn but the its being absorbed.  The problem is it is like the stock market and prices have been stagnant, whether it goes up or down it helps with velocity.  Investors are on the sidelines, there are no small developments because they dont pencil, so its just large developers that are breaking ground on new projects but this should change...hopefully.  Im in So Ca and between Los Angeles &amp; Santa Barbara is a great area!", "replies": [], "depth": 1}]