Question for all of you soooooo desperate to buy a house right now.

[timelesschild]

Originally Posted by SOON2BNSURPRISE

Truthfully though, the bottom of the market for a prospective buyer should be when the cost to buy is cheaper than the cost to rent. Who cares where the market heads after that, buying at that point reduces your cost.

Exactly.

[bhcompy]

Originally Posted by SOON2BNSURPRISE

Truthfully though, the bottom of the market for a prospective buyer should be when the cost to buy is cheaper than the cost to rent. Who cares where the market heads after that, buying at that point reduces your cost.

And at this point, it is cheaper to buy than rent in more and more areas

[00molavi]

Originally Posted by bhcompy

And at this point, it is cheaper to buy than rent in more and more areas

Is that factoring in your down payment? Also add taxes, insurance, HOA, Mello roos and repairs. How much more is a roof over your head worth it. I guess the big question is; when would the rents start going up?

[bhcompy]

Originally Posted by 00molavi

Is that factoring in your down payment? Also add taxes, insurance, HOA, Mello roos and repairs. How much more is a roof over your head worth it. I guess the big question is; when would the rents start going up?

with an FHA loan, sure it can be, especially if you're receiving gift funds.

as far as rents going up, probably as soon as the market can bear it. my landlord is trying to rent the fronthouse of my complex for 2500/mo(last family signed up right before the credit market crash at the end of last summer and broke the lease early). backyard with no privacy or fence(apts in the back), 3bd, 2bth. they found a very similar fronthouse right down the street for 1700. right around the corner, a stand alone house(3bd, 2bth) is also up for rent at 2100, and its been empty for 2 months now. its not so much that people are losing their jobs(some are for sure), its that debt is crushing people and the economy is dictating to people to slow down and spend wisely.

i spend 1400/mo on rent right now. im going to purchase a house in a nice neighborhood with an FHA loan shortly and spend less than i am now in rent after taxes and insurance, and thats not including the interest and tax writeoffs

[dr2seecity]

Originally Posted by looking2reloc

For me, the reason I'm starting to look is because of the "seemingly" low prices, [with the thought that the prices are still going to come down maybe 10-20% next year], and because the interest rates are low, plus the $8K incentive. I realize that it hasn't bottomed out yet, but if I plan to live there permanently, then it's a no-brainer, because it will still go up. Maybe not in the next 3 years, but probably in 10 years or so. During the peak years, no, I never thought that I should buy because "I'll never be able to afford a house". What goes up must come down and what goes down goes back up. That's the universal reality.

Timing to buy or sell real estate has never been an exact science. One can never predict when the bottom is going to hit. Or when the peak is going to happen. By the time you're ready to buy, the property you've been 'eyeballing' is probably gone. Homes on the market are now getting multiple offers. HOmebuyers and investors are back in action. Your best move is look around now, if you see a place that peaks your interest, buy it, especially if it's in good condition and good location because other buyers are most likely have been looking at that property also. So word for the wise: If your intent is to stay long term rather than flip for a quick buck (which is hard to do now), then you'll be OK.