Need desperate advice on housing situation

[sliverbox]

I'd have to disagree with this statement. I suppose it depends on where you are buying, but here rent is certainly not cheaper than buying and you would get a much better return on your money in a 3 - 4 year period. Appreciation in Middle TN has never had the huge appreciation, or depreciation jumps like in CA or FL...

You totally missed the point of my reply. If you KNOW that you are only going to be here for 3-4 years, then no- you shouldn't be buying a home. This makes zero financial sense.The argument that " rent is throwing money away" only makes sense to people with more permanent plans. Its like retirement. You wouldn't start a retirement plan then pull out all your money when you turn 35 would you? The same holds true for housing.

There is now way that you can show me proof that housing in Nashville or anywhere else is guaranteed to appreciate. In fact, the daily headlines show a national housing situation that is actually going negative.This might be the case for Nashville, and it might not. But what is certain is that housing- just like stocks and investments can and will fluctuate wildly with time. Just like investements, housing values will more than likely be higher, but over a wide time period of rises and falls.

The fact that even now, you can rent for often way less than buying means a few things: First of all, you will have a set amount of money that you will be paying per month. This is reliable ad concrete. What is saved and out away in the bank is absolute. So at the end of 2-3 years, you walk away with what you have saved.

What if the value of the house bought by an individual actually goes down in value? You lose money. Then again, it could go up as well. There isn't a reliable way to track housing values. This is why I find it a financially unwise choice to buy short term with the only reasoning being to resell shortly for a hopeful profit.

As far as "nobody staying put for long anymore" well this is precisely why the housing bubble got out of control, because people treated their houses like ATMs and banks rather than houses. A Home is a long-term investment- not to mention- A HOME.


Now... I can understand why a real estate agent would have the mantra that it is "always a good time to buy", but this doesn't really hold water, and it doesn't especially in this person's case. sorry.

[wellkids]

Originally Posted by sliverbox

You totally missed the point of my reply. If you KNOW that you are only going to be here for 3-4 years, then no- you shouldn't be buying a home. This makes zero financial sense.The argument that " rent is throwing money away" only makes sense to people with more permanent plans. Its like retirement. You wouldn't start a retirement plan then pull out all your money when you turn 35 would you? The same holds true for housing.

I didn't miss your point at all. I just disagreed with it! Housing is nothing like retirement, nor is it a mutual fund, or a stock, or a bond. Housing is a necessary expense that if done wisely, can also be used as a savings and investment tool. Telling people they should only buy a home if they KNOW they will not be moving for at least five years or longer, to me, is ridiculous. I suppose executives who get transferred, young couples planning to have children, anyone who KNOWS that their current housing situation and needs will change over the next 5 years should not buy a home. That advice is the best way to keep any young couple from ever building equity and moving ahead in their goal to live in a home rent free, OR mortgage free. You are telling a large majority of the population that their decision to buy makes "zero financial sense."

Originally Posted by sliverbox

There is now way that you can show me proof that housing in Nashville or anywhere else is guaranteed to appreciate. In fact, the daily headlines show a national housing situation that is actually going negative.This might be the case for Nashville, and it might not. But what is certain is that housing- just like stocks and investments can and will fluctuate wildly with time. Just like investements, housing values will more than likely be higher, but over a wide time period of rises and falls.

Can you show me proof about the rental market? I can show you statistics and predictions. All we can do is make the best decisions possible based on what we think will happen. I also believe you are a resident of California and you post comments on the Nashville housing market regularly. Your comments and opinion are welcome, but I don't agree with them. The housing market in Middle TN does not follow the national trend, or the California market that you live in. In fact, the Nashville market is different from the Brentwood market, the Murfreesboro market, etc. It is inaccurate to compare national housing statistics, or the CA market in relation to Nashville. Yes, housing will fluctuate like you state. However, you fail to mention that is it ALSO certain that rent will fluctuate! And, rent will most likely be higher over time!

Originally Posted by sliverbox

The fact that even now, you can rent for often way less than buying means a few things: First of all, you will have a set amount of money that you will be paying per month. This is reliable ad concrete. What is saved and out away in the bank is absolute. So at the end of 2-3 years, you walk away with what you have saved.

Rent is NOT reliable as concrete. Rent is most often, not chepaer than owning. Again, perhaps you are posting based on a CA perspective and I am posting on a middle TN perspective. In fact, RENT is the GUARANTEED flutuating amount. Only a fixed rate mortage is GUARANTEED. Only with a fixed mortgage will you have a set amount that you will pay each month over a 3 - 4 year period. Have you ever heard of a 4 year rental lease agreement with no rise in rent? In addition, there is no guarantee that you can even live in a rental home for 3 - 4 years. The landlord may decide to suddenly sell and then you are out of a home and searching for a place to live - with no guarantee of your rent.

Originally Posted by sliverbox

What if the value of the house bought by an individual actually goes down in value? You lose money. Then again, it could go up as well. There isn't a reliable way to track housing values. This is why I find it a financially unwise choice to buy short term with the only reasoning being to resell shortly for a hopeful profit.

Agreed. However, a 4 year period is not short term to me. What if the cost of rent goes up during the period. You lose money! What if the housing market has a nice appreciation and you are a renter. You lose money! We can play the "what if" game all day long. Let's think about the wise buyer who uses a fixed rate 15 year mortgage. By five years they would already have 1/3 of their home paid for! This doesn't even begin to calculate whether or not they have built up equity, if there has been appreciation in the housing market, or if they had a nice savings on taxes. They are only 10 years away from being free and clear of ANY monthly housing expense! Your young couple is still renting, with nothing to show for their five year period of faithly paying for their housing expenses each and every month.

Originally Posted by sliverbox

Now... I can understand why a real estate agent would have the mantra that it is "always a good time to buy", but this doesn't really hold water, and it doesn't especially in this person's case. sorry.

Okay, I find that offensive. First of all, my mantra is NOT it is always a good time to buy. Let's see, I believe I said that if they were moving within a year then they should NOT buy. Yes, I am a real estate agent and a very good one. I am knowledgeable, professional and extremely honest. I have told more than one client NOT to buy a home. In fact, I just did this again this weekend to a young couple and told a single mom today that before she proceeds she really needs to talk to her lawyer and a good lender to make sure this is her best move. I'm glad you told me what MY mantra is. Now I get to call both of these clients back and encourage them to buy NOW!

I am proud of what I do, and how I do it! I post on this board because I was born and raised in Middle TN and love this area. I enjoy sharing comments and information with other native Tennesseans, and hopefully, helping people that are not from this area. Since my profession is working in the housing market DAILY, it would only seem natural for me to answer the questions that people post ASKING for help or information on the housing and real estate market! IF someone contacts me because of my comments then I would be thrilled to assist them in their home search. I post because I enjoy it and nothing more. Exactly why do you post?

I didn't agree with your opinion and posted mine. Sorry you felt the need to insinuate my opinion and comments were some how slanted because of my profession, yet yours (as a CA resident) are valuable to the original poster.

[akm4]

Wellkids- I find your comments to be helpful, informative, and respectful of others. I can't say that for every poster.

Thank you for your contributions.

[sliverbox]

Wellkids,
I apologize for being somewhat nasty yesterday. I take back what I said about your profession. Indeed, there are good and bad things about every industry. Out here in CA, I feel like way too many people jumped onto the real estate industry bandwagon to make a quick buck and push people into homes they couldn't afford anyway. So in some ways, I'm not exactly the most trusting individual when it comes to the real estate industry. But then again, there are people like yourself who seem to be genuine and into the job because you like it. Again, I apologize.

But.. I still feel strongly that a person who knows for a fact that they are moving out of an area in 3 years- and in this person's case to an another country- should consider renting for if anything, the ability to simply pack up and move versus having to first come here, find a home, make and offer, buy the home, perhaps make repairs, then turn around and have to sell the thing before moving back again. Might as well make that 3 years 2 years because when all is done and settled, you're talking about 6 months to get in, and 6 months to get out when planning, buying, selling, and so on are involved. I am an old-fashioned sort of guy who keeps his cars for 15 years at a time versus the typical 3 year lease people seem to do these days, and I feel about the same for housing.

There is an element that in my opinion outweighs mere financial meaning. If I were moving to another country temporarily, I think I'd be looking for a way to rent something as cheap as possible, carry as few posessions as possible, and be saving as much as possible. To each their own opinion.

Anyhow, that's all I have to say about it. Good luck on whatever you might do.

[Diane Giam]

Originally Posted by alleycat

I would suggest you rent for six months. That would give you the chance to familiarize yourself with Nashville, decide on location, and, more importantly, decide if you actually like it here enough to stay for four years. You might get here and hate it, or you might get homesick. Since you have an infant, you could rent a one-bedroom apartment near your work, and then later, check out houses in various areas.

By the way, I work with two people from the UK. I'm sure you can find a pub or two where UK natives hang out and talk about "back home".

Personally, I don't think there's going to be much of a market recession in the greater Nashville area (but no one can predict the future). I wish there would be; I'd love to see house prices drop by 20%.

Just my opinion, nothing more.

There is a British club here in Nashville. I was told that by some from England in my new neighbor's League. The nEW nEIGHBOR'S League is a wonderful place to meet new people that moved into the area.Test New Neighbors - Home