overwhelmed w/ where to go in COS!!!

[Bob from down south]

Originally Posted by sbmgfarr

"Your 4-year time horizon looks to put you right into the danger zone, from my perspective. "

hmmm. so, in your opinion, you think its not a GOOD time to buy, its a BAD BAD BAD time to buy? i am thinking of when we lived in alaska, when we first got there 7 years ago. the apr was at 1% and we didnt buy. it rose and rose as we paid more than enough in rent each month for 7 years. now that the rates are low again in our next state, and we have a chance to come out with a home, we feel like we cant say no. we just dont want to dump thousands of dollars a year again into rent when those thousands could go into our OWN HOME (and in a state and area we want to retire in). am i really being naive? and im not asking that to be a sm*rt*ss, really, so am i hoping too high?

I don't think you're being a smart a** at all. Many, many people are making decisions today based on what they remember of yesterday's reality, and that can kill you financially.

Add to that a corps of real estate "professionals" that have been singing the same old tunes: "real estate can't go down, they're not making any more of it, renting is wasting money etc.," no matter what's happening in the market. They make money every time a house sells, even if the seller is losing his shirt. They don't care if it destroys you later. When it sells they profit...after that--it's your problem. You've already observed that they're trying to sell you their own listings even if they don't line up with your desires.

Originally Posted by sbmgfarr

so, in your opinion, you think its not a GOOD time to buy, its a BAD BAD BAD time to buy?

In a nutshell, yes, exactly. All good things to those who wait. Heck, just rent for a year, and then re-evaluate. The next year appears to be the most dangerous to me...after that we'll have a better idea of how many fangs the market monster really has. In the meantime, find a number of houses that interest you, and watch what happens with prices and time on market. I've been doing that for over a year...prices are falling, and houses are sitting with little movement in the segment I'm watching.

The RE and financial market situation today is nothing like 7 years ago. Today we are very obviously on the downside of a collapsing RE valuation bubble, which makes a buy right now something far different than 7 years ago. Do a google search for "housing bubble" and take a long objective view of the misery that is being felt by people all across the looted plains.

I'm assuming that you are military...that adds another major element of risk, in that you can be forced into a move at the worst possible time with little warning. I know...I lived under that same anvil for nearly 27 years.

[tfox]

I certainly don't share the same perspective as many of the gloom-and-doomers on this board; I tend to be a more glass-half-full kind of person. That said, even in a boom market I wouldn't recommend buying immediately in going into a new area, simply because you don't understand the new area. Renting for a year is an excellent idea, but in this market it's a no brainer, since there's just about zero risk of prices going up on you, except for possibly in a few very select areas, and prices will almost certainly drop some in the next year (how much, of course, depends on a lot of factors). That probably holds true actually for the next few years.

Rent is also now a historically "good deal" -- it's been driven artificially low due to the housing boom. Of course, it's headed up, pretty sharply actually, but it's best for you to take advantage of the low rent because you'll never see rent this low ever again.

[COflower]

I haven't read through the other posts but seriously, rent first.

Your idea of a warm and inviting 'hood and mine (or others) may be very different.

All I have to say is to stay away from the SE part of the city.

[Bideshi]

Originally Posted by sbmgfarr

"we dont want to try and rent for a few months, as we are doing that now and its severely draining what little money we have saved for a home).

If you are already drawing from savings just to pay rent, you need to look for a place with lower rent or adjust your expenditures somewhere. Owning a house is not going to lessen your outlay by much, if any, over renting.

[sbmgfarr]

thanks guys. i have been looking at more things and talking with more people and have a better grasp on the areas of colorado springs. i especially know where to stay away from, where i can afford and where i can dream about for a few years . i am keeping my eye on some properties and also waiting to see what pops up in the next few months as well.
im hoping ill get a feel on the city quickly so we can pick a neighborhood/home and move in. thanks for your help this far

p.s. our funds are depleating not because of our lifestyle, but because we were placed in california for 4 months. we found out we were moving two weeks before we left alaska (which really stunk!) and werent given housing on base while we were here. so we had to find a place to live and unfortunately, couldnt find a place cheaper than we did (its very hard finding someone to rent to you with animals and only for a few months when they can get someone else in for a year at a time). the military is messing up our pay and we havent gotten the correct amount now since feb., so the mistake is coming out of our savings for the time being. so please dont think we are irresponsible with our money or living beyond our means, things just got fouled up; im just thankful we had money saved.

[pablo-me]

I'm not a realtor, but have owned 3 homes (1 in the springs). We paid 158k for ours there in 2002. 1700 sqft and awesome neighborhood. Also helped friend from alaska find a house here. pm me if you need more help, cause I don't read this board.

Ithink the housing market is perfect for 'lowball offers' and interest rates...you could steal a house from the right seller.

We're moving back next month from NE and will rent to get a feel for the area again.
Renting before buying (ESPECIALLY FOR OUT--OF-TOWNERS) is the smartest business move if looking for the 'perfect house/deal. You can always find some to sublet to when you close.

[Maynerd]

I'm a little more optimistic than several other posters. Home values have decreased in the Springs, but not by the margin of many other markets. Why? Because our housing values didn't spiral up as quickly as they did in those markets. That makes many homes in COS "right priced."

And, because of the general health of the nationwide real estate market, existing home sales are sluggish. That can work to your advantage. Somebody who has had a property on the market for a while might be very willing to entertain an offer in your price range.

Tread carefully, but don't fear to tread.