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Awwww Mikey...did you think I was yelling at you???? Far from it my friend
I live in south Charlotte.
heh just joking - I think most will agree that the "real money" is in South Charlotte. Some areas down there are definitely exceptions for most of my rant.
I still feel like you won't see any significant appreciation over the next several years unless you're talking really prime locations.
I wish you were up North so you could talk some sense into my wife about staying!!
Well, despite anything I have posted about some of the prices coming down in various subdivisions . . . I have to say . . when you need to move, you just do what is prudent.
Let's look at the big picture. There was a time in my life when mortgage interest rates soared over 13% easily. I grabbed at 13% as things were going up and felt LUCKY!!!! Really - can you imagine? Had I not locked in, the very next week, they went up again!!! And I had great credit - it was just the going rate!!!
So the way I see it . . . if you buy a home, even if you get it and the market value drops some - let's say you bought a $300,000 home and it drops 10%. Okay, theoretically, you are out $30,000. But if you plan to stay in it, plus you have a great interest rate - and they are great rates!!!!! - and you are in a house you are happy with - and you are getting a tax benefit . . . well, really, was it that big of a deal? If you are gonna stay in your house for several years . . . most likely the value will rise - appreciate. And meanwhile, you are in a great neighborhood - your kids are in a school they like . . . then as long as you can stay there for five years . . . did it all really impact you net worth that much? Did the purchase add to your quality of life? Happy family?
Some decisions are relative to the overall circumstances of your life at any given moment in time.
Very well said as always. That's what risk means. Sometimes a decision come sback to bite you in the butt, but sometimes you make out like one of those bandits raising crime rates throughout Charlotte. This is no time to sit on your hands. If you're renting and have good credit, you should buy!
Well, despite anything I have posted about some of the prices coming down in various subdivisions . . . I have to say . . when you need to move, you just do what is prudent.
Let's look at the big picture. There was a time in my life when mortgage interest rates soared over 13% easily. I grabbed at 13% as things were going up and felt LUCKY!!!! Really - can you imagine? Had I not locked in, the very next week, they went up again!!! And I had great credit - it was just the going rate!!!
So the way I see it . . . if you buy a home, even if you get it and the market value drops some - let's say you bought a $300,000 home and it drops 10%. Okay, theoretically, you are out $30,000. But if you plan to stay in it, plus you have a great interest rate - and they are great rates!!!!! - and you are in a house you are happy with - and you are getting a tax benefit . . . well, really, was it that big of a deal? If you are gonna stay in your house for several years . . . most likely the value will rise - appreciate. And meanwhile, you are in a great neighborhood - your kids are in a school they like . . . then as long as you can stay there for five years . . . did it all really impact you net worth that much? Did the purchase add to your quality of life? Happy family?
Some decisions are relative to the overall circumstances of your life at any given moment in time.
I agree w/alot you say Anifani, however some people don't realize that its alot more than just the drop of the price.
300K loan @ 6% 30yr fixed = $540K total payments at end of loan ($1500/month payment)
270K loan @ 6% 30yr fixed = $486K total payments at end of loan ($1350/month payment)
That's just a 30K drop. I totally understand a decision should not be made totally on #'s, but IMO to me its a huge factor.
This is no time to sit on your hands. If you're renting and have good credit, you should buy!
Again, that's a blanket statement and the way YOU feel, but again some people feel financially they will continue to reap the fruits financially if they hold off purchasing.
Jack, I love playing with you! LOL!!! You play nice.
Okay. Let's look at this one.
$300K loan @ 6% 30yr fixed = $540K total payments at end of loan ($1500/month payment)
$270K loan @ 8.75% 30yr fixed = @2124.09/mo payment (and I don't have my amortization calc w/ me, so can't show the godawful total payment figure)
So even if the price of the houses go down . . . when you buy 3 years from now, I predict the interest rates will be b/n 8 and 8.75%.
That's a great point about factoring in interest rates. We don't know where they will be in 3 years.
I was looking mainly at the past year and going into the next year. I can't make a blanket statement like it won't be good to buy in Charlotte for the "next 5 years". Too many factors that can't be determined. I'm looking more at the short term.
I know from experience that CJ and I share a similar outlook on this... doesn't seem any different here.
The main problem with all this hypothetical number crunching is that it's.. well... hypothetical.
If the Fed raises interest rates - like even accidentally suggests that they might consider it long term, it will send everything into a worse tailspin. You think houses aren't selling now?!
I know from experience that CJ and I share a similar outlook on this... doesn't seem any different here.
The main problem with all this hypothetical number crunching is that it's.. well... hypothetical.
If the Fed raises interest rates - like even accidentally suggests that they might consider it long term, it will send everything into a worse tailspin. You think houses aren't selling now?!
Interest rates will go up! We are experiencing interest rates that have not been seen for what - 40 years?
They will normalize back where they were b/f the drop - around 8 - 9 %, based on historical analysis.
My point is - take a hard look at buying property. I am a "bargain shopper" myself. But if you need to move . . . and need to provide shelter for your family . .. you will have to either rent or buy . . . and don't discount that even w/ falling prices, you will still be receiving a tax benefit and once the rates start going up again, you will still be paying less than if you had waited and bought a house at a lower price point.
All considerations are relative - based on your needs as a family at any one given time. Some of us want our homes to be that investment that pays off over time so we can build equity and either cash that out at retirement . . . or apply to a move-up house . . . but in the end . . . houses are places we live, raise our families . . . and putting your family into a good neighborhood, w/ schools you prefer, well those reasons may be good enuff to roll the dice and buy where you feel the prices are reasonable . . . and where your quality of life is going to be what you want for your family.
None of us has a crystal ball to accurately predict where the economy is going to go and how interest rates are going to rise (and if they do - when) but it is my feeling based on past history, that housing prices may drop in most new subdivisions in Charlotte, except the ones on prime property, such as lake property and in upscale areas w/ stable school districts. Just my opnion.
But I am also the person who predicted in 2004 that gas prices would be towards $4 a gal by end of 2007, and my friends and family said that was just not gonna happen. I am gonna stick to my prediction that new subdivisions here will drop prices b/n 10-12 % this year, and that interest rates will be at 8% by first quarter of 2011. Taking bets, LOL. Wanna start a pool? Ooops. I think that may be illegal in this state.
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