Is it A Good Time To Buy A House Or....... (Merchantville: real estate, buyers)

[John_G]

the only times I've seen the price go up (in this market) has been when the initial list price was so low, that it generated alot of offers, quickly -- in that case, the agent and/or the seller realized they under-priced, and they raise the list price.

now, it's very likely that they will raise it so high that interest in the property will dry up, in which case it'll come back down to whatever that market allows...

[John_G]

Originally Posted by joe moving

I like the eloan.com rent vs buy calculator. Just google that, and play with the numbers.

It is fairly comprehensive. But here is the thing, it assumes that IF you are renting, then you are going to take every single penny you WOULD have otherwise spent on a home, and invest it and make 8%. Not that this would not be smart, but most people do not have that sort of self control.

I put 7 years of home ownership, 5% savings rate (vs 8%), and below 3.0% appreciation is where renting vs buying even out. Of course there is so much more to consider for me. For one is QUALITY OF LIFE!!! PRIVACY... CONTROL OVER YOUR HOUSE!! If you have children or more children in the next 7 years are you going to have to move into a bigger apartment... and then rent is going to go up, etc.

indeed.

living in an apt. and having no responsibilities, makes it very easy to spend like a drunken sailor... whereas becoming a homeowner engenders a sense of needing to save $$ (or, you won't be in that house for long!)

I have a car hobby that I enjoy, and want to expand. I can't do that living in an apt. ...or a condo ...or a townhome -- I need a house with some property !

[judithexit]

Originally Posted by John_G

the only times I've seen the price go up (in this market) has been when the initial list price was so low, that it generated alot of offers, quickly -- in that case, the agent and/or the seller realized they under-priced, and they raise the list price.

now, it's very likely that they will raise it so high that interest in the property will dry up, in which case it'll come back down to whatever that market allows...

you are correct ( ring the bell )

[shannybannany]

Well, I'm buying. I got cash. I need to live in a house. I don't rent! Period!

[wileynj]

Originally Posted by shannybannany

Well, I'm buying. I got cash. I need to live in a house. I don't rent! Period!

Shanny..you are too funny : )) You can hear the excitement / feel the energy in every thread you have responded in today about how happy you are to be coming back to NJ. I'm sure with this one though, your DM box will be full of messages from realtors...lol : ))) Where are you planning on settling? Down the Shore?

[Looking For a Home]

I have also noticed that some of the new home prices in the market I am studying have increased, even though it is a declining market. When I studied this issue, I found two interesting trends:

1) As prices increased, so did the incentives. (This is just a pricing strategy; the higher price allows for a bigger discount and more incentives, so you think you getting better deal, while the builder is able to maintain a higher average price per unit)

2) The other issue revolved around the pricing of existing homes. As prices decline, home pricing patterns develop into price clusters. Some builders move their home prices just above these clusters in order to set them apart from other declining property on the market.

Any other thoughts?

[shannybannany]

Originally Posted by wileynj

Shanny..you are too funny : )) You can hear the excitement / feel the energy in every thread you have responded in today about how happy you are to be coming back to NJ. I'm sure with this one though, your DM box will be full of messages from realtors...lol : ))) Where are you planning on settling? Down the Shore?

Wiley: I know, I am so ready!!! I was on the phone with my mother this morning and she actually asked me if I was on something. She said I was talkin' a million miles a minute. LOL! Yeah! So what else is new?

We are looking at Cherry Hill, Merchantville, Cinnaminson, etc... I grew up in Monmouth County but we want to be closer to Philly.

No, no.....no realtors. I have one already! Thanks, carry-on!

Shanny

[wileynj]

Originally Posted by shannybannany

Wiley: I know, I am so ready!!! I was on the phone with my mother this morning and she actually asked me if I was on something. She said I was talkin' a million miles a minute. LOL! Yeah! So what else is new?

We are looking at Cherry Hill, Merchantville, Cinnaminson, etc... I grew up in Monmouth County but we want to be closer to Philly.

No, no.....no realtors. I have one already! Thanks, carry-on!

Shanny

well try and get some sleep tonight : )) Oh and welcome home : ))

[John_G]

Originally Posted by Looking For a Home

...pricing of existing homes. As prices decline, home pricing patterns develop into price clusters. Some builders move their home prices just above these clusters in order to set them apart from other declining property on the market.

you are exactly right on this point.

and the irony is, that this strategy works.

I guess there will always be some people out there who have more money than brains...

[stephz1008]

Okay, first let me say, I am NOT a realtor.

That being said...

Anytime is a good time to buy, but that depends on your situation and needs. If you are going to buy a house to do a fix and flip, forget it... those days are gone pretty much unless you can get an EXTREMELY good deal which given the flood of foreclosed properties is not going to happen. Or if you are a person who has a tendency to move around a lot, this is not going to be an ideal situation for you.

However, if you are looking for a long term investment where you are going to be living for some time, then yes by all means buy.

On average, a homeowner owns a home for 7 years. If you buy a house today, odds are in 7 years you are going to make at least a minimal profit between appreciation and what you are able to recoup on interest payments on your taxes.

If you rent, even at $1200 a month, that is $14,400 a year that you are never getting back, never seeing a return on. Someone else is getting the benefit of your money. But if you take that same money and buy, granted at $1200 a month, particularly in NJ, you are getting a square foot of space , but you can write off you mortgage interest on your taxes and you are one year closer to owning a piece of property that more than likely will be worth more when you sell it than when you bought it.


Anyway, that is JMHO, everyone needs to weigh their own thoughts.