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Old 04-25-2012, 09:45 AM
 
1,359 posts, read 4,297,306 times
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Quote:
Originally Posted by neil0311 View Post
Values don't have to be trending down or up. They can be flat. Our value has been flat for pretty much a year or more. I'm hoping the next leg is up.
Given the huge headwinds for home ownership (taxes, fees, insruance, termite protection, maintenance, and what not), it makes financial sense to be a home owner only in a rising home market.

(It makes emotional/social sense to be a home owner at any time.)

So from a financial sense, a flat market is not an inducement to purchase.


(edit: add realtor fees, and the pain involved in selling a house to list above)
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Old 04-25-2012, 09:58 AM
 
Location: Marietta, GA
7,887 posts, read 17,118,946 times
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Quote:
Originally Posted by FromGA View Post
Given the huge headwinds for home ownership (taxes, fees, insruance, termite protection, maintenance, and what not), it makes financial sense to be a home owner only in a rising home market.

(It makes emotional/social sense to be a home owner at any time.)

So from a financial sense, a flat market is not an inducement to purchase.


(edit: add realtor fees, and the pain involved in selling a house to list above)
Sorry, but that's not true. Especially when interest rates are at all time lows, as are the value of homes. Buying when the price is close to all time low is the smart thing to do. You don't wait until the market starts back up.

Most experts agree that in the current market where rents are rising and home prices and mortgage rates are at all time lows, it pays to buy over rent. Plus there is the tax benefit for some people from the mortgage interest and home improvements.

NYT: Still better to buy than rent in Atl. - Atlanta Business Chronicle

Buying is Cheaper Than Renting, Most Cities

Cheaper to buy than to rent in 72% of largest U.S. cities | Inman News

One last point to make...you don't buy a home as an investment. You buy it as a place to live, for shelter. You hope that it appreciates over time, but you should never buy with the mindset that it's an investment or that you will make money. That's what got so many people into trouble.
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Old 04-25-2012, 10:04 AM
 
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As a homeowner (of my previous home elsewhere in GA that I have still own, have rented out), and a renter for the last few years in metro Atlanta -- I can tell you that homeownership is so over-rated!
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Old 04-25-2012, 10:15 AM
 
Location: Marietta, GA
7,887 posts, read 17,118,946 times
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Quote:
Originally Posted by FromGA View Post
As a homeowner (of my previous home elsewhere in GA that I have still own, have rented out), and a renter for the last few years in metro Atlanta -- I can tell you that homeownership is so over-rated!
We are all entitled to our opinions, and that would be yours related to your preference to rent. Just don't confuse that with the facts around the market and the cost/benefit relationship between owning/renting.
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Old 04-25-2012, 10:23 AM
 
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Buy a home to live in and to avoid rent. Not to flip and profit.
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Old 04-25-2012, 11:45 AM
 
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Quote:
Originally Posted by neil0311 View Post
We are all entitled to our opinions, and that would be yours related to your preference to rent. Just don't confuse that with the facts around the market and the cost/benefit relationship between owning/renting.
Mine is an opinion, but yours is a fact?

Neil from 2010:
Quote:
True, but I do acknowledge the impact that foreclosures have on the local market. My own home has lost almost 20% of value since I purchased it in 2007. 1 year ago, there were foreclosures and homes for sale in our subdivision. Today, there are none to my knowledge.

Neil 2012, this thread
Quote:
did a refinance for my home and had an appraisal done. While it has lost plenty of value (about 25% in 4.5 years, which I knew from the reduction in tax assessment), the appraiser said that our area was stabilizing and that inventory was moving faster than it had been.
I agree that home-ownership should be a good thing. That is history world-wide. However, the headwinds at this time are too high, and I am not too optimistic about the usefulness of home ownership (until some of these headwinds are addressed, if they ever will be).
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Old 04-25-2012, 11:48 AM
 
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I would also say (using my own logic) that a 1% drop in home value might equate to 2% or more real loss, given that one is paying interest etc. on the original value.
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Old 04-25-2012, 11:52 AM
 
1,922 posts, read 3,968,030 times
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I don't understand. Why buy a home to live in just because it is cheaper? What if the value keeps declining after purchase...then what?

Won't this be a loss on the homeowners part?
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Old 04-25-2012, 11:56 AM
 
Location: Norman, OK
3,478 posts, read 7,225,814 times
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My parents are having a horrible time selling their condo in Atlanta. The worst part - the HOA has capped the rentals in the complex and so they are on a waiting list right now. This means - they cannot rent their unit out to even offset some of the carrying costs. So, they are painfully waiting for some offer to come in and sell the condo while paying $$$ to sell it. And they live in RI.

If anyone is interested (or knows someone who is interested) in purchasing a 2/2 condo in Vinings, PM me.

Last edited by wxjay; 04-25-2012 at 12:19 PM..
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Old 04-25-2012, 12:02 PM
 
1,250 posts, read 1,875,834 times
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Quote:
Originally Posted by nj21 View Post
I don't understand. Why buy a home to live in just because it is cheaper? What if the value keeps declining after purchase...then what?

Won't this be a loss on the homeowners part?
Buy when you think the prices hit rock bottom or when rents are just too high to make economical sense in comparison. So what if it drops more after you buy it? Car's and clothing do the same thing. The thing with a house is you shouldn't be buying it to flip, you should buy it because you want to own property and not pay rent until you die.

Last edited by Onthemove2014; 04-25-2012 at 12:14 PM..
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