Home Buying in 92234>Question Details

Mensch Dad, Other/Just Looking in 92234

is buying a home in the palm springs area a good investment if if has declined over 50% in price now?

Asked by Mensch Dad, 92234 Thu Mar 31, 2011

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I think Palm Springs has a special feeling that people from all over still invest this quaint city ,in my personal opinion yes ,it is a good investment ,please allow me to speak with you to discuss details as to why this purchase is being considesred .Specific reasons each sale has to be dealt individually.
thanks Broker HENA MARTIN 760-251-2868 henamartinoo7@hotmail.com
1 vote Thank Flag Link Mon Mar 11, 2013
I am not a real estate agent.

The decline in Palm Springs real estate values has been brutal since 2007.
I would agree with the real estate agents here who say we are at or very near bottom, and interest rates are excellent. It might be a good time to buy. HOWEVER:

Palm Springs is not for everyone. People come and GO because they can't stand the summer heat, the lack of work, the $9 an hour jobs with no benefits, and the utter boredom that comes with living in a bleak desert. Yes, there is a nice mountain to look at, but the view gets old fast. I have lived here for 7 years, now age 60. Met some wonderful people and love my friends dearly. We have some very nice times in Palm Springs.
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My house, bought in 2007, has declined 50% but It will never be for sale. For rent, maybe. But I would never sell at that kind of loss. I recently bought a condo at the beach in LA that was new in 2006 and also declined 50%. We split our time between the desert and beach. It's a nice life. The beach part of life is better then the desert part.

Say what you want about the other desert cities, Palm Desert, Cathedral City, La Quinta. The fact is if you tell anyone from outside the area that's where you live they say, huh? Never heard of it. Palm Springs has the name recognition, and the attitude that goes with it. The City is convinced it is quite something. Anything that happens in the world, if you believe our local newspaper, has six degrees of separation from Palm Springs. For example, a cop is shot in Cleveland. The shooter is a grandson of a woman who knew someone who once played canasta with a person who sold cleaning supplies to Lucille Ball's housekeeper to clean Ms. Ball's Palm Springs home.

When it comes down to it the best thing Palm Springs has going for it is one hell of a fireworks display at the High School. Really, I have a pool party every year becase of my spectacular backyard view and my friends still talk about it in December.

Don't even think of raising your kids here. If they have already been born here be sure you encourage them to go to college far away so they get a chance to experience what is beyond that mountain that separates this place from the real world and civilization.

Really, most of this is just playful rambling. PS is where I live 50% of the time in my house worth 50% less than what I paid for it. Before you buy something that I payed twice the price for just be sure this kind of lifestyle is right for you. Because you may never be able to sell the freakin' place you buy.

I am not a real estate agent.
1 vote Thank Flag Link Sun May 29, 2011
You can now qualify to buy another home of your choice with a minimum 580 fico score which qualifies you for only half percent downpayment while you rent out your home now. You couln't do this last year but this year you can. Inquire if any interest or have any questions. If you have no lates you can refinance to 30yr fixed 3%-4% and save hundreds off your mortgage payment. We also have short-fi's forgiving negative equity debt if you qualify. Give us a call.

http://www.FrankandSheryl.com
http://www.Under640FicoScoreLoans.com
Sheryl Arndt, Broker
DRE# 01440252
NMLS# 297251
760-486-4225
Flag Fri Sep 14, 2012
Palm Springs is a tourist and retirement community. we are a seasonal destination if you looking for a second home for the purposes of family vacations. It is a great time to buy. . The market is on a upswing. However, prices have a long ways to go before they hit the top of the market. There is also other nearby cities that are fairly close to downtown Palm Spring.
0 votes Thank Flag Link Thu Apr 17, 2014
Timeshares are never a good investment. You can only use them for a certain time each year, and the upkeep payments on them are not worth it. When you go to sell them, you never get the price you paid. In the long run you'd be better off renting places in different locations each vacation. You aren't locked into one place that way.
0 votes Thank Flag Link Wed Apr 9, 2014
I am wondering. I am heading to Desert Hot springs in December. It has been a while since I have been there, as I have been in Mexico for over 10 years. But, I will be coming home. I am curious where are the nicer communities right now to live in? I have lost quite a bit of money on a restaurant/bar I owned here in Mexico. So now, I still a decent monthly income is it possible to find a home where the owners will carry the financing with little to nothing down? I am looking for a minimum of two bedrooms, clean, up to date with a decent fenced back yard for my dog. If anyone has anything like this available. Please feel free to email me at dd.ashby@hotmail.com
0 votes Thank Flag Link Thu Sep 19, 2013
Buyer a home is always a good investment depending why you are considering this purchase ,is it an investment ,or a residence to retire,real estate has taken a beating all over not just Palm Springs.
Palm Springs has a feeling that is awesome some neighborhoods are so elite ,gorgeous and well kept depends what your needs are ,you can call me to discuss if I may assist you in making up your mind. Thanks HENA MARTIN Broker/Owner 760-251-2868
0 votes Thank Flag Link Wed Jan 16, 2013
Sales have been Hot Hot Hot! Simmering Hot + depending on the location + that has declined in value by 50% should be a XLNT deal!
0 votes Thank Flag Link Fri Sep 21, 2012
I can understand your concern about investing in Real Estate in the Palm Springs area, but there are no investments that are risk free, unfortunately. If you are interested in a rental or a place to live that is one of the most beautiful locations in the world, that has reasonable prices, and even its own airport, I'd say "Go for it."
0 votes Thank Flag Link Fri Sep 21, 2012
You either like the desert life or you don't. My granparents were from Chicago and retired to the PS desert area in the 60's and lived out their lives very happily. My parents inherrited their home and my Dad lived out his life there.

My 90 year old Mother tried living in San Diego near the coast to be close to all her children, grand and great grand children but couldn't stand the dampness and moved back to the desert where she continues to live very happily.

I'm writing this comment from our timeshare at the Desert Springs Marriott in Palm Desert. We have a home in Vista, Ca that we've owned and love since 1980 and a vacation home in Leucadia, CA (beach) that we actually spend more time in than our primary residence.

We love the desert but I have to agree with Tom, the homebuyer, from PS. I certainly wouldn't want to live here full time. If you are just planning to purchase a home as an investment and rent/lease it out it's probably as good a time as any I've seen since the crash in '07.

But where I disagree with Tom is that PS is his position on:

"Say what you want about the other desert cities, Palm Desert, Cathedral City, La Quinta. The fact is if you tell anyone from outside the area that's where you live they say, huh? Never heard of it. Palm Springs has the name recognition, and the attitude that goes with it."

Palm Desert and La Quinta and perhaps even Cathedral City are very desireable for the most part. I much prefer Palm Desert and La Quinta to PS. It's very upscale in many areas and there's a lot of very nice golf courses in the area if you're into golf.

That stated, if you're not a golfer there really isn't much to do; especially in the summer. You end up spending most of your time in an air conditioned environment which is not particularly my cup of tea. We've never had AC in our homes and don't intend to. Everytime I come back from a week at the desert I have a sore throat and I'm sure it's from breathing all that AC.

I certainly don't want to appear as though I'm bad mouthing the desert because that's not my intent. Obviously there are a few hundred thousand folks who live fulltime in and love the desert lifestyle. But I'll go back to my opening statement. Just my humble opinion. You either like the desert or you don't.
0 votes Thank Flag Link Thu Sep 20, 2012
Ask your self this when is a good time to buy?
Is it at the lowest or at the highest?

So Cal Homes has bounced from the lowest from 2009 and starting to go up in price since March 2012. Many homes have already gone up 5%.
2013 if you believe in fortune telling,... looks like the possibility of double digit increases. 10-15%?
2014 is a much bigger question.
The good thing is there is room to expand and room for commercial growth which will have a direct impact on the area.


Harold Sharpe - Broker
So Cal Homes
(951) 821-8211
harold@socalhomes.biz
http://www.socalhomes.biz
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Thu Sep 20, 2012
The time to buy is now with record low interest rates and home prices having dropped 1/2 to 2/3 in some areas. The prices have hit bottom in a lot of cites and they are practically giving them away. We can email you a market analysis for any where your considering in CA. Non owner occupied investor loan require 15-20% down. We offer owner occupied FHA 30 yr fixed rate 3%-4% loan with a minimum 580 fico with only half percent down.

http://www.FrankandSheryl.com
http://www.Under640FicoScoreLoans.com
Sheryl Arndt, Broker
DRE# 01440252
NMLS# 297251
760-486-4225
0 votes Thank Flag Link Fri Sep 14, 2012
Property values Valleywide have hit and have been dragging bottom for some time now. How much lower can they go?... logic tells us that homes are already selling below replacement cost, that is, the cost to acquire the lot and rebuild a comparable home. Land, lumber, labor, etc aren't getting any cheaper. Our population continues to increase yet new home building has all but stopped. Remember Econ 101... supply and demand? Factor in some future inflation due to government budget deficit, federal debt, increasing interest rates, and currency devaluation and you have a recipe for a rapid rebound in home values. If you are weighing your options and deciding whether to buy now... the answer is yes! Ten years from now you won't be complaining that you bought your Palm Springs retreat back in 2011. Good luck.
0 votes Thank Flag Link Tue May 24, 2011
Hello Mr. Mensch - there aren't very many homes that have depreciated that much in Palm Springs. Are you sure that is the case? If so I would think it would be a great value....I can explain in more detail if you need to email me. Best to you on your purchase quest. From A Mensch Realtor in PS.
0 votes Thank Flag Link Tue Apr 26, 2011
If you are an investor you may be wise to partner up with other investors. It's all about leverage and making what money you have work for you to the max. We are a distressed property acquisition, rehab, resale, buy and hold to rent/lease, property management and real estate investment company.

We specialize in pre forclosure (short sale), foreclosure and probate related investments throughout the San Diego, South Riverside, Orange County and Palm Desert/Springs area and would be happy to discuss sound investment opportunities with you anytime.
0 votes Thank Flag Link Fri Apr 1, 2011
With property values down, and interest rates low, this very well may be the right time to purchase a property in the Palm Springs market area. Nobody can say for certain when property values will begin to increase again, but I can tell you that recent foreclosure sales in the area have been selling above the asking price.

Historically, the Palm Springs market area lags behind the Los Angeles and San Francisco markets by approximately six months, meaning when those markets show signs of improvement it's time to purchase in the Coachella Valley as property values there should begin to rise within the next six months. If you're looking at real estate strictly as an investment with the hopes of selling once the market returns, consider keeping an eye on the L.A. and S.F. markets and consider using them as your guide.

"Flipping" property (buying a property and fixing it up to make a profit) can be done in any market, if done correctly. If this is your goal, I recommend getting a copy of the book "FLIP: How to find, fix, and sell houses for profit". E-mail me at buddy@buddylarue.com and I will gladly send you a copy.

If home ownership is your goal, now may be one of the best times to purchase due to the low interest rates that can be obtained. Interest rates have been slowly rising over recent months, so locking in now may be your best strategy.

As income producing property (purchasing a property to rent out), now may not be the best time to purchase as there are many rentals currently available, bringing rental rates down and vacancy rates are up.

I've sold real estate in the Coachella Valley for almost 13 years, primarily in the cities of Palm Springs, Cathedral City, and Rancho Mirage. Though I am now in Houston, my business partner remains in the Coachella Valley and will be happy to assist you. Please contact me directly and I will have him contact you. He has over 30 years real estate experience, and has been in the Palm Springs area real estate market since the early 1990s.

I hope this answers your question and that I hear from you in the near future.

Sincerely,
Don "Buddy" LaRue
Keller Williams premier Realty
713-878-2530
buddy@buddylarue.com
0 votes Thank Flag Link Fri Apr 1, 2011
I'm probably a little biased here because we love the desert. Palm Springs is great. Just make sure you're buying the dirt and not getting involved with a lease situation. Palm Desert, Cathedral City, La Quinta is actually where the action is depending on your buying appetite and capability.

I'd recommend coming down for a few years if you're young and hanging out. If you're a senior and have a wad of dough now's a perfect time to pull the trigger. If you don't have that wad you may just want to check out a few resident owned Manufactured Home Communities. Just my opinion.
0 votes Thank Flag Link Thu Mar 31, 2011
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