2012 - BEST YEAR IN LAST FIVE YEARS TO BUY

#1   Home prices have finally bottomed out.  The "shadow inventory" that everyone talks about is largely in the East Coast, New York, those states.  We have gone through most of the "shadow inventory" already in Orange County.  We are now through the worst of it.  YES!!!

#2  Interest Rates.  Interest rates are a hedge against inflation.  Inflation is coming, higher prices for food, gas, everything.  Interest rates WILL go up (they have to) as a counter against inflation.  Right now, I've heard of rates as low as 3 3/4 % for 30 years fixed.  WHAT?!?!  Lowest in 100 years? 

#3  As a return on investment, where can you find a solid 5% to 10% return on an asset that is tangible and can be used for tax write-offs? 

#4  MOST people who bought during the crazy "gold rush" days of the housing boom, bought in 2005 and 2006, when it was too late.  These people are now possibly looking at short selling their home.  The people who bought in 2000 through 2004 are in pretty good shape.  People are STILL waiting for home values to drop and won't buy until their friend buys.  You will never get a good deal if you jump on the "band wagon" in 2013. 

#5   There are still great deals to be had.  Yes, there are good deals on standard/regular sales.  Yes, there are good deals on Bank Owned/REO's in Placentia, Yorba Linda, Brea, Fullerton, etc.  But there are short sales that are going through and sometimes, they are going for CHEAP.  Investment opportunities abound.  Maybe not as far as "flipping" goes, but as far as picking up rentals, holding onto them for positive cash flow and then having an asset to liquidate in the future.