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Old 07-11-2008, 08:34 AM
 
Location: Weddington, NC
284 posts, read 530,415 times
Reputation: 293

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Oh, and "OP" means "Original Poster". I think it's considered good etiquette to refer to "OP" instead of the person by name. I have no idea. Ani's the professional here, she must know!
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Old 07-11-2008, 08:41 AM
 
236 posts, read 731,198 times
Reputation: 139
Gator803

Who'd you use to sell your old house? Or is this your first house?
Send me a direct message
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Old 07-11-2008, 08:44 AM
 
Location: State of Being
35,885 posts, read 67,046,730 times
Reputation: 22371
Quote:
Originally Posted by stephen424 View Post
OP thinks ANIFANI makes good points, but teaches her children to play it safe. OP was taught that if you go thru life never taking chances and playing it safe...then sure you'll be comfortable...but bored as heck.
Yep. I am boring. Got me on that one.

I also own two homes . . . the second home has appreciated over 4 x my purchase price despite a 20% reduction in value this last year. My main home has appreciated over 50 % since I purchased it 5.5 years ago. This is not speculation on my part. I had appraisals done on both of them last week. The appraisals plainly stated that the value has been diminished by market sales in both areas where the properties are located.

I would say I have done very well on my real estate investments . . . even in an unstable market. If I had listened to ANY of the advice I received from others - and that includes investors, family and friends - I would never have bought EITHER property. I do my own research and projections and base my decisions on that - not what others say.

You have obviously made up your mind what you are going to do. But I will put this in writing. If your property value on your new house has increased $60,000 by Jan 1st 2010 and the interest rates are still at 6.5%, I will ante up $100 so you and your wife can have a meal out on me, cause that is how certain I am about this market.
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Old 07-11-2008, 08:48 AM
 
236 posts, read 731,198 times
Reputation: 139
ANIFANI...make that $200 and we have a deal.
The market could go either way. I work at an architectural firm out here in ballantyne and our corporate/urban design team has a crew of market analyst. they predict the market will square off my summer of 2009.

all they do is market analysis and research. so i think things will get better. especially by 2010...with a new president as well...yeah, things will get better.
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Old 07-11-2008, 08:56 AM
 
Location: State of Being
35,885 posts, read 67,046,730 times
Reputation: 22371
Quote:
Originally Posted by stephen424 View Post
ANIFANI...make that $200 and we have a deal.
The market could go either way. I work at an architectural firm out here in ballantyne and our corporate/urban design team has a crew of market analyst. they predict the market will square off my summer of 2009.

all they do is market analysis and research. so i think things will get better. especially by 2010...with a new president as well...yeah, things will get better.
I agree w/ your design team if they mean the decreases on property will bottom out b/f 2010 and sales will pick up (assuming inventory has been depleted, and I think it will have by then).

The wild card is two-fold: higher interest rates, yes . . . but also . . . stricter lending guidelines . . .
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Old 07-11-2008, 09:00 AM
 
236 posts, read 731,198 times
Reputation: 139
Interest rates on a fixed haven't been above 7 or so percent in like 12 years.
The allen tate gave me a print out. I'll get it and state facts from it.
So I don't seeing rates getting too out of hand.

Plus I bank with the State Employees Credit Union. Their rates are usually better than every elses anyway
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Old 07-11-2008, 09:24 AM
 
Location: Cornelius
3,662 posts, read 8,672,459 times
Reputation: 797
Quote:
Originally Posted by stephen424 View Post
Interest rates on a fixed haven't been above 7 or so percent in like 12 years.
The allen tate gave me a print out. I'll get it and state facts from it.
So I don't seeing rates getting too out of hand.

Plus I bank with the State Employees Credit Union. Their rates are usually better than every elses anyway
There are some major parameters you're not considering right now about the market. It's not all just about what is happening within the housing and mortgage businesses.

I'll list a few tidbits that could create a perfect storm of economical collapse:
  • $200 per barrel of oil
  • War with Iran (Oil goes to $300+ per barrel)
  • War in the Middle East
  • U.S./Russian standoff - see Missile Defense Shield in Czech Republic
  • Food prices continue to rise because of oil
  • Dollar continues to weaken because of oil, inflation, and Uncle Sam being trigger happy at the printing press
  • An imminent terrorist attack
  • A new president

This market and world is sitting on a powder keg, and without taking these things into consideration would be immature (not saying you're immature, I promise ). It would only take bullets 1 or 2 to set the economy into a tail spin downward, but the other bullets may happen all the same, and at the same time. I cold actually add several more bullets, but I hope you get my drift.

You can call my warning mere speculation, but I assure you 1/2 of those bullets I mentioned are more sure to happen than our market bouncing back by 2010. I would usually be in the same driver's seat as you (taking risks, etc), but in today's market, we need to be more cautious and take heed in our global environment.

So, take this how you like, but just wanted to throw it out there in case you never considered it. We live in a global economy these days, and our dollar is VERY weak. In fact, it's borderlining collapse. Maybe not tomorrow, but if that perfect storm happens, you better be sure you have a back up plan to protect your interests, and your family.

Edit to add: I forgot to say my whole point for all this: if/when (yes, when) these things happen, your 7%- interest rate will look like a steal compared to 15-20% interest rates. So don't ever be so sure that it can't happen.
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Old 07-11-2008, 09:42 AM
 
Location: Huntersville
1,521 posts, read 4,477,941 times
Reputation: 298
Rates cannot stay this low forever. It will go into double digits its just a matter of when.

The American dollar being low is not good for the EU. They will do everything possible to make the dollar strong again. We could debate this all day long.

Stephen you have recieved some sound advice on this thread. Please do not dismiss it. Read through this thread. Pull out the golden nuggets and run the numbers. Get GFE from some mortgage brokers so you can see how much the new loan is going to cost etc....

Good Luck!
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Old 07-11-2008, 12:27 PM
 
140 posts, read 285,954 times
Reputation: 101
I agree with QCM, rates will not stay this low for long. Just a year ago, I have been warning friends (I'm a mortgage professional) who were looking to purchase a home to do so sooner rather than later, as some of saw these troubled times arriving, and with it all the changes on lending guidelines and the soon to happen pricing (if Fannie and Freddie do come down and need to be bailed out, this will have a huge -negative- impact).

But of course a little prudence and common sense are always useful when buying a home. People forgot to buy a home for the right reasons and just watched too much TLC!! I think you have gotten a lot of good advice here and as QCM mention you should not disregard it.
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