Bears Hybernate

BEARS HYBERNATE because in winter there is no food, it’s cold, miserable, and well… dreary.  I’ve always been a real estate “bear”, preferring flat or declining markets to euphoric bull markets that inevitably crash. 

I have not been blogging, but hybernating.  However, it is now “spring” in the market, and time for “bears” to get to work.

Now that the market has deliciously crashed, and continued to crash through this last month, it is time for me to “wake up”.  Ah, the winter kill!  What a “winter” it has been!  Foreclosures everywhere! Yum!  Whow!  The market bulls this time have been wiped out.  Dumb bulls.

Has the market hit the bottom yet?  Is it time to wake up?  Almost… almost there… what is the purchase price to rent ratio in Santa Clara County?  Ah, 1/1:20.  A  purchase price to capitalized rent ratio of 1:15/1 is a good time to buy. 

McMurdie’s Real Estate Rule No. 2: never buy into a declining market; buy at the low price using known minimum income/ price values, and then buy bargains.