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the sky isn't falling because your family sold their property? Maybe in bizarro world it isn't falling but here in N. America things are horrible and getting worse. They expect 23% devaluation by the end of 2008, I say in total it will be more like 50% devaluation when all is said and done. So I am truly glad your family was able to get out (when ever that was) but here and now, things are crappy.
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Originally Posted by gbugmiami
For the record, my family and friends have now sold all their properties. For 'things aint selling'. 5 properties. All in Miami. All at about 20% less (or less) than the peak prices... but all sold. (8 months, total). From north miami, to the design disctrict, to kendal, to cutler bay, to west miami. Mine is the only one that hasnt sold, and thats because i was a fool and didnt list it. So the sky isnt quite falling just yet. But when it does, Im sure CJ will chime in.
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Originally Posted by nanwalt3
That part of the equation is going to be a very serious problem, when the homes go into foreclosure, and those people need to find rentals.
There was a special on the "Today Show" this morning, and the financial person said, she feels this is a great time to buy, due to the foreclosures out there, along with Banks approving short sales, and Sellers dropping prices and really negotiating.
She felt the rental market was going to start to dry up and rentals would go up in price, because of all the folks being displaced due to foreclosure, and selling their homes at rock bottom prices.
I think that this whole thing about renting vs. buying depends on each persons situation. Everyone has sound reasons for making this decision.
I think CJ made points that are sound in his mind for renting and fit his situation, but let's face it everyone's situation is different, so everyone needs to look at their personal circumstances and make a decision that's in their best interests.
The 100% financing on stated income, subprime borrowers was an inexcusable fiasco, imposed on Buyers, by greedy banks and lenders.
Yes there are a lot of smart people speaking on this! I think all of the views have excellent points. Keep up the good work everyone!
I enjoy this, both the pro's and con's.
what CJ said has NOTHING to do with what is sound in "his mind". What he said is the traditional gauge used by banks i.e. mortage 3 times annual income, 10 to 20% down. Now if you can find a home in your price range that meets that criteria then by all means buy. Other wise it would be foolish, just as foolish as it was back in 2000 when people stopped using that measure of affordability and started using ARMS and such.
As has been said by people on here MANY times over, and has been said by many economist (which I would take the word of over the today show any day), 3x time annual income, 10 to 20 percent down. When those factors re align int he market then buy, until then sit back and chill. Unless you like struggling to make ends meet. Not to mention we are headed into a recession (which I think wont be as bad as most originally though). So I say sit back, wait for the recession to take place, wait for housing to return to traditional price levels given average annual income per house hold.
I should mention as well, people need to stop believing everything they see on these shows. These shows and the people on them have agendas. Do your own research and by research I don't mean five minutes of googling to reinforce what you already believe. I mean research that comprise information from many different angles. Make sure the sources are trust worthy and reputable. Best of luck to everyone out there.
the sky isn't falling because your family sold their property? Maybe in bizarro world it isn't falling but here in N. America things are horrible and getting worse. They expect 23% devaluation by the end of 2008, I say in total it will be more like 50% devaluation when all is said and done. So I am truly glad your family was able to get out (when ever that was) but here and now, things are crappy.
what CJ said has NOTHING to do with what is sound in "his mind". What he said is the traditional gauge used by banks i.e. mortage 3 times annual income, 10 to 20% down. Now if you can find a home in your price range that meets that criteria then by all means buy. Other wise it would be foolish, just as foolish as it was back in 2000 when people stopped using that measure of affordability and started using ARMS and such.
As has been said by people on here MANY times over, and has been said by many economist (which I would take the word of over the today show any day), 3x time annual income, 10 to 20 percent down. When those factors re align int he market then buy, until then sit back and chill. Unless you like struggling to make ends meet. Not to mention we are headed into a recession (which I think wont be as bad as most originally though). So I say sit back, wait for the recession to take place, wait for housing to return to traditional price levels given average annual income per house hold.
I should mention as well, people need to stop believing everything they see on these shows. These shows and the people on them have agendas. Do your own research and by research I don't mean five minutes of googling to reinforce what you already believe. I mean research that comprise information from many different angles. Make sure the sources are trust worthy and reputable. Best of luck to everyone out there.
Good post. My main point was that the real estate agent who posted that $250,000 houses were selling for $135,000 was not fooling anybody.
Obviously any real estate broker, agent, appraiser, neighbor, or person with a pulse who saw such a thing would sprint over to the seller and ink a deal instantly.
I also said that the two blogs I have read through this entire housing bubble have led me to make great financial decisions so far. So I am going to continue to follow their advice and look for the Florida housing market to continue a downward path for the next 12-18 months at least. Maybe longer, I'm sure they will reevaluate things as time goes on.
Those that do not agree and think they should buy now and can find deals...go for it....trust your research as I will trust mine. You certainly have plenty of inventory to choose from.
There was an article about 6 to 8 months ago that dealt with the seriousness of investor rentals. When the rents fall as you say they will, the investor will rent the home and quit paying the mortgage and just pocket the money. The real loser is the tenant who faces eviction because of foreclosure. His lease is meaningless at this point, his eviction is certain.
The investor bought the property, whether its SFH or CONDO to MAKE MONEY. If the rent won't cover the mtge and expenses; he can get anywhere from 4 to 6 mths of rent out of an unsuspecting tenant, before the Bank takes the house.
Heck, he doesn't even have to worry about another tenant or if they damage the property. If he got 1st and last, he's further ahead, too!
These investor homes are going to be the first rental market to dry up. There is no emotion on the part of the investor, he's in it for the money, period.
The thought of all these INVESTMENT homes, doesn't paint a pretty picture for any tenants out there.
WAKE UP AND SMELL THE COFFEE. You sound like this is a good thing that the majority of foreclosures are investor owned.
ANYTIME THERE IS A MAJOR LOSS, IT ALWAYS GETS PASSED ON TO THE CONSUMER!!!! WHAT WILL THIS EVENTUALLY COST ALL OF US IN THE FUTURE???
ANY IDEAS ARE WELCOME
what I meant about the investor owned foreclosures,is that since alot of them are second homes,there will not be anyone being evicted as the house was empty to begin with,so therefore
no renters flood on the market as they would have you believe,in my neighborhood theres about 10 houses for sale, 7 of those are unoccupied,so if all ten sell that makes three possible renters granted they dont own another property or are moving out of state alltogether,so in my eyes will those numbers flood the rental market?? not a chance.you made a good point though about being careful with flippers trying to pocket the cash before foreclosure
hits,leaving you stranded.through scams and all there will be a massive amount of rentals for people to choose from.
If you're a real estate agent, of course you're going to tell people to buy.
Stock markets across the world were on a downward spiral today, most of it due to the real estate market in this country. So much is tied up in these foreclosures, even municipal bonds.
Watch the stock market sink tomorrow when the bell rings. What will the feds do to try to prop it up? The whole thing would be amusing if it wasn't so sad.
YES, what CJ said works for him, what you say works for you, Not everyone is in the mindset or situation. When deciding to buy, you have to go with what you can afford!
I don't care if the traditional gauge is 3 X's annual income, with 10 to 20% down,,,,,that may not be right for me or anyone else. I may not want a pymt as high as the Banks say I can afford,,,,SO. People need to explore their reasons for wanting to own a home, and their finances to make the pymts. Like I said previously,,,,,100% financing, with stated income on subprime borrowers was a fiasco. In this day and age, how can we intelligently use "the traditional gauge."
By the way "Einstein" I didn't say the "Today Show", was supposed to make you or anyone run out and buy a house. I merely mentioned what was said, and I guess if you want to research something, why don't you GOOGLE it. I may of gotten it wrong,,,,,so sorry.
However, I'm entitled to make my choices based on my situation, like everyone else here is entitled toooooo! That is my only POINT!
So cool your heels and wait,,,,good luck!
Everyone else, do your research, do your homework, and do what's BEST FOR YOU!
No one knows what's best for you, so good luck if you Buy, and good luck if you Don't. Express yourself and lets stay happy and healthy and always on good terms.
I don't know what neighborhood you live in, but if all those homes are 2nd homes, then that is quite secure for the neighborhood, even if only 3 were investor homes.
In the area I'm in a large # of homes were investor homes,,,,bought to flip. Those are the ones I'm really worried about, these people have nothing to lose and everything to gain. I feel bad for the tenants that WILL get caught in the cross-hairs.
In my area, this is going to be a major problem. It may rectify itself quicker with the bank takeovers and the short sales, and then only a smaller # of actual homeowners that purchased in the last couple of yrs., and used bad choices for financing.
This is why everyone's situation is different and the set of problems varies geographically.
There are actually areas of the Country that are still very strong. That's why you can't generalize on the total economy.
I know we're still in the woods, but time heals all.
Quote:
Originally Posted by lostbuyer
what I meant about the investor owned foreclosures,is that since alot of them are second homes,there will not be anyone being evicted as the house was empty to begin with,so therefore
no renters flood on the market as they would have you believe,in my neighborhood theres about 10 houses for sale, 7 of those are unoccupied,so if all ten sell that makes three possible renters granted they dont own another property or are moving out of state alltogether,so in my eyes will those numbers flood the rental market?? not a chance.you made a good point though about being careful with flippers trying to pocket the cash before foreclosure
hits,leaving you stranded.through scams and all there will be a massive amount of rentals for people to choose from.
my condo is currently selling for $75-100k less than what I bought it for in 2005 at the peak. How much lower can it go? This is a nice 3br, 2 ba in Bellamar 1182 sq ft. Last price I saw was $127,900. Soon, cars will be MORE expensive than condos. Isn't there something wrong with this picture??
my condo is currently selling for $75-100k less than what I bought it for in 2005 at the peak. How much lower can it go? This is a nice 3br, 2 ba in Bellamar 1182 sq ft. Last price I saw was $127,900. Soon, cars will be MORE expensive than condos. Isn't there something wrong with this picture??
There was "something wrong with the picture" from 1999-2005. There was nothing to support prices increasing except for a lot of funny lending and phony appraisals.
so are you saying that ANYONE who purchased a condo or SFH from 99 on has lost money?
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I think all of the views have excellent points. Keep up the good work everyone! 
Im hearing houses here are starting to be bought by europeans. dont know if it will keep it from falling to far though...
