Asked by Nealer, 95630 • Mon Jan 21, 2013
Do the hardest hit areas during the depression make the best or worst investments now? I have seen people offering different advice/strategies on the subject. Here are the arguments i've seen:
1) Areas with the largest depreciation during the downturn (>50%) are now the best deals, since have the highest potential to go back up!
2) Areas which held their value more, did so because they had high demand due to good neighborhoods/schools, and therefore these areas will continue to do well as the market rebounds.
The second argument seems to imply that these harder hit areas never truly deserved their "high" prices that they held, which is why they came down so far. In this case, we shouldn't expect them to get back to those levels as fast as the good areas.
Are these arguments overly simplified, or is there truth to either of them? I'm a first time home buyer looking for an investment property.
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