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let me laugh. I dont think you will be thinking of buying a home if home prices lower another 50% ( lets take an example a house worth 150k in 2006-2008 now is worth 50-80k Now if it drops another 50% it makes it worth 25k-30k ( first of all the banks will go bankrupt and the goverment wont pay a cent , most people will lose all the little money they have in banks, forget 401k, forget health care.. instead of buying homes people will think of buying guns... it will be chaos..
Put the bong down. Prices have started solidifying and are beginning to rebound in most communities in northern NJ. The housing market in 2013 will be the strongest it's been in years. Exceptions might inlcude the rural, exurban areas, where the market is still sluggish and oversupplied. But suburban NJ is no longer oversupplied at all. I am seeing inventory levels at 4-8 months in most areas. And THAT is the lowest it's been in years.
The real estate armageddonists should now consider themselves unemployed, at least for awhile.
Put the bong down. Prices have started solidifying and are beginning to rebound in most communities in northern NJ. The housing market in 2013 will be the strongest it's been in years. Exceptions might inlcude the rural, exurban areas, where the market is still sluggish and oversupplied. But suburban NJ is no longer oversupplied at all. I am seeing inventory levels at 4-8 months in most areas. And THAT is the lowest it's been in years.
The real estate armageddonists should now consider themselves unemployed, at least for awhile.
Can you find me a few post in which you labeled the market as terrible or not doing so well? Rose colored glasses for the past 7 years?
Honestly, as a home owner to be and in the same situation as you (make about the same income, 2 kids), I would recommend to get a bigger house. I have only look at houses in good school town ranging from 400k to 550k. I ended up getting a house slightly higher than my target range but it is a two family. So rent will take care of the tax and insurance.
Looking for a house is a journey, I have look at more than 6 to 8 towns, over 300 properties. Made 3 offers, first one die after inspection. Second one was submitting late and the owners accepted the offer from the buyer who submitted few days earlier. I am glad I was late, or else I wouldn't find the house I am buying now. Much bigger house and better condition. Best of it, tax is lower.
Ask yourself this question when you look at the property: Is this the best I can offer to my children? If no, then move on to the next property.
and you want the rest of us taxpayers to bail you out later? This is terrible advice....you can''t afford a 400k house if you only make 100K...let alone a 500K+. It is totally true that what separates someone that is rich and working class is not the bank account but their mindset...listening to all these comments, its no wonder you guys are always going to remain the working class. slaving away and living paycheck to paycheck...esp the guys that said that thing about the fha loans...that basically is a program for people with no money and bad credit..its what put us in this financial mess in the first place...did you forget already?
Last edited by mdwfa2001; 12-23-2012 at 11:01 AM..
I'd encourage the OP to go FHA and 3.5% down... in this housing and job market you want to put down as little as possible... why? Simple... lets say you need to relocate in the next few years or lose your jobs and have a home going into foreclosure... in these times, there's no gaurantee your home will be worth more now than what you paid... do you want that decrease eatting up the equity you invested through your downpayment or do you want it on the bank's head in the case of a foreclosure or going through a shortsale? I say give it to the bank. I've got to imagine these people who put $60 or 100k down on their homes and are still doing shortsales are just sick at the loss of money... I put $11k down to get into my home 2 weeks ago.
Beyond that, at today's interest rates, why wouldn't you want to borrow as much money as possible? You're paying 5% on an FHA... getting 27% (probably) back through federal tax savings so you're only paying net 3.75% interest... take whatever more you were going to pay in a downpayment and find a nice savings bond or even the stock market... in the long run you're going to get a better return than the 3.75% interest you're paying on the extra principle.
Large downpayments are a TERRIBLE idea... they make no long term financial sense and in the short term create a great deal of financial risk for you.
dumbest logic, people who say this are the ones who can't really afford the homes they want to live in. I'm sure you voted for obama too.
Can you find me a few post in which you labeled the market as terrible or not doing so well? Rose colored glasses for the past 7 years?
Yes. Let me look... searching... searching... Oh! Here's one. The post you quoted! "Exceptions might inlcude the rural, exurban areas, where the market is still sluggish and oversupplied." Would that qualify as the equivalent of "not doing so well", or is sluggish and oversupplied my rose colored glasses...
and you want the rest of us taxpayers to bail you out later?
This is where intelligent people can do well -- and fools get burned again, of course. After something like the housing collapse, people get overly conservative, but the fundamentals haven't changed, just the way people see them.
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This is terrible advice....you can''t afford a 400k house if you only make 100K...let alone a 500K+. It is totally true that what separates someone that is rich and working class is not the bank account but their mindset.
Yes, but it's the rich person who sees the value in using other people's money. Note that the person you are responding to is going to be making 100K + rental income, which changes the equation considerably. (though personally I'd never want to be a landlord)
This is where intelligent people can do well -- and fools get burned again, of course. After something like the housing collapse, people get overly conservative, but the fundamentals haven't changed, just the way people see them.
Yes, but it's the rich person who sees the value in using other people's money. Note that the person you are responding to is going to be making 100K + rental income, which changes the equation considerably. (though personally I'd never want to be a landlord)
100k doesn't mean anything if you're expenses are high....and yes using leverage is good sometimes..but not if you are stretching yourself and putting yourself at risk. Most rich people are rich because they know how to manage their money, and know how to identify value. However, stretching yourself on 100K income and one paycheck away from being on the street is not smart by any means.
and you want the rest of us taxpayers to bail you out later? This is terrible advice....you can''t afford a 400k house if you only make 100K...let alone a 500K+. It is totally true that what separates someone that is rich and working class is not the bank account but their mindset...listening to all these comments, its no wonder you guys are always going to remain the working class. slaving away and living paycheck to paycheck...esp the guys that said that thing about the fha loans...that basically is a program for people with no money and bad credit..its what put us in this financial mess in the first place...did you forget already?
If you read the post again, you'll see they bought a duplex and are renting one side out, I think that makes a difference.
Note that the person you are responding to is going to be making 100K + rental income, which changes the equation considerably. (though personally I'd never want to be a landlord)
Fair point, but if the top of his price range was $550K and he went above that, he might be leaving himself a $450K+ mortgage. I wouldn't want to be so dependent on a tenant (especially in low renter demand areas like most of NJ) to pay a $450K+ mortgage. Those mortgage payments are going to eat up most of his monthly income if the tenant leaves.
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