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It'sa terrible time to buy when interest rates are low, like now. Realtors just lie without shame about this fundamental fact. House prices rose as interest rates fell, and house prices will fall as interest rates rise, because a fixed monthly payment covers a smaller mortgage at a higher interest rate. Since interest rates have nowhere to go but up, prices have nowhere to go but down. The way to win the game is to have cash on hand to buy outright at a low price when others cannot borrow very much because of high interest rates. Then you get a low price, and you get capital appreciation caused by future interest rate declines. To buy at a time of low interest rates and high prices like now is a mistake. It is far better to pay a low price with a high interest rate than a high price with a low interest rate, even if the mortgage payment is the same either wayA low price lets you pay it all off instead of being a debt-slave for the rest of your life. As interest rates rise, house prices must fall.Your property taxes will be lower with a low purchase price.Paying a high price now may trap you "under water", meaning you'll have a mortgage debt larger than the value of the house. Then you will not be able to refinance because then you'll have no equity, and will not be able to sell without a loss. Even if you get a long-term fixed rate mortgage, when rates inevitably go up the value of your property will go down. Paying a low price minimizes your damage.
First of many announcements that will stop your shadow inventory from coming out into the light... Recent judge ruling is going to throw foreclosures into question.
Actually, this means that it's a good time to stop paying your mortgage.
It'sa terrible time to buy when interest rates are low, like now. Realtors just lie without shame about this fundamental fact. House prices rose as interest rates fell, and house prices will fall as interest rates rise, because a fixed monthly payment covers a smaller mortgage at a higher interest rate. Since interest rates have nowhere to go but up, prices have nowhere to go but down. The way to win the game is to have cash on hand to buy outright at a low price when others cannot borrow very much because of high interest rates. Then you get a low price, and you get capital appreciation caused by future interest rate declines. To buy at a time of low interest rates and high prices like now is a mistake. It is far better to pay a low price with a high interest rate than a high price with a low interest rate, even if the mortgage payment is the same either wayA low price lets you pay it all off instead of being a debt-slave for the rest of your life. As interest rates rise, house prices must fall.Your property taxes will be lower with a low purchase price.Paying a high price now may trap you "under water", meaning you'll have a mortgage debt larger than the value of the house. Then you will not be able to refinance because then you'll have no equity, and will not be able to sell without a loss. Even if you get a long-term fixed rate mortgage, when rates inevitably go up the value of your property will go down. Paying a low price minimizes your damage.
great idea! Why didn't I think of that sooner? Everyone with an extra few hundred thousand in cash laying around raise your hand!
It'sa terrible time to buy when interest rates are low, like now. Realtors just lie without shame about this fundamental fact. House prices rose as interest rates fell, and house prices will fall as interest rates rise, because a fixed monthly payment covers a smaller mortgage at a higher interest rate. Since interest rates have nowhere to go but up, prices have nowhere to go but down. The way to win the game is to have cash on hand to buy outright at a low price when others cannot borrow very much because of high interest rates. Then you get a low price, and you get capital appreciation caused by future interest rate declines. To buy at a time of low interest rates and high prices like now is a mistake. It is far better to pay a low price with a high interest rate than a high price with a low interest rate, even if the mortgage payment is the same either wayA low price lets you pay it all off instead of being a debt-slave for the rest of your life. As interest rates rise, house prices must fall.Your property taxes will be lower with a low purchase price.Paying a high price now may trap you "under water", meaning you'll have a mortgage debt larger than the value of the house. Then you will not be able to refinance because then you'll have no equity, and will not be able to sell without a loss. Even if you get a long-term fixed rate mortgage, when rates inevitably go up the value of your property will go down. Paying a low price minimizes your damage.
Take a chill pill kid, sheesh. When my parents bought their first house, rates were over 14% for nearly a decade. The house quadrupled in 15 years. It's never a bad time to buy a house to live in it. You sound more like a speculator to me than someone that wants to live in a home.
The whole problem with buying a home is the resale thing right now. Look, if you are looking to buy because you want a HOME, that you are going to LIVE IN, then it's probabally never a bad time to buy. If you are looking to flip houses to make some cash, then maybe don't buy. You can buy at a decent price now, but unless you're willing to hold on to it till the prices go back up to silliness numbers, then it's not a good time to buy because after you've renovated the 250k dump by dumping 100k into the dump, there aint much profit left in this market, and you'll be sitting on it for a while because you'll probabally believe that you can get 2005 prices for it just because you put in a granite kitchen. So, if you are simply seeking out the American dream of owning your own piece of the pie, then buy a home. If you're a skel contractor dirtbag type, then you're probablly better off holding out a little bit, that is unless you are so well off that you can buy at todays lower prices and sit on the property for a few more years until the prices start inflating again and then try and flip it.
Ask the people who bought in 2005 and 2006 if it was a good time to buy.
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