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Northeastern Pennsylvania Scranton, Wilkes-Barre, Pocono area
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Old 01-14-2009, 09:53 PM
 
Location: Asheville, NC
12,296 posts, read 28,678,136 times
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Are homes that are priced right selling at this time? Or, is the market not doing that well with the way the economy is?
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Old 01-14-2009, 10:02 PM
 
Location: John From Scranton
858 posts, read 2,869,243 times
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Quote:
Originally Posted by beckycat View Post
Are homes that are priced right selling at this time? Or, is the market not doing that well with the way the economy is?
Lots of homes forsale.. Some at good prices.. But you need the cash to buy..
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Old 01-14-2009, 10:12 PM
 
Location: Old Forge.. Formerly GreenRidge
96 posts, read 153,030 times
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Wife and I are closing on a house at the end of the month. Historically, this is one of the best times to buy a house ever. We bought our house for 10,000 less than seller was asking, but he was overpriced.
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Old 01-14-2009, 11:04 PM
 
2,317 posts, read 4,757,993 times
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Quote:
Originally Posted by GreenRidgeGuy View Post
Wife and I are closing on a house at the end of the month. Historically, this is one of the best times to buy a house ever. We bought our house for 10,000 less than seller was asking, but he was overpriced.
good for you guys...In what area of PA....
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Old 01-14-2009, 11:16 PM
 
Location: Old Forge.. Formerly GreenRidge
96 posts, read 153,030 times
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Quote:
Originally Posted by coartist88 View Post
good for you guys...In what area of PA....
Old Forge
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Old 01-15-2009, 02:43 AM
 
85,960 posts, read 83,490,800 times
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Quote:
Originally Posted by GreenRidgeGuy View Post
Wife and I are closing on a house at the end of the month. Historically, this is one of the best times to buy a house ever. We bought our house for 10,000 less than seller was asking, but he was overpriced.

its not a question of what the seller was asking that determines if its a good deal its how much below the real value you negotiated....

i always say markets have no memory, they dont remember what they once were they only know todays price so all negotiations start from todays actual price and go down from there...
many home sellers think well the buyers already getting a great deal because home prices fell but they fail to realize a seller today if hes motivated to sell has to leave something on the table for the buyer ...namely equity at the closing

as far as best time, only the future will show if thats true, home demand may still stay low for decades. there is no longer that fallacy that home ownershp leads to riches so we better buy now before it goes up. just like nasdaq that got way ahead of itself tradionally home appreciation barely nudged out the lowley treasury bill and got so far ahead of itself the last run up that it may never go back in some areas to levels seen...

in alot of areas renting is the better deal,here in new york you can rent for 1/3 to 1/2 the cost of buying and no massive down payment,, we rent our primary residence in new york but own our nepa home....

all housing costs like food costs over alifetime are an expense so buy a home not for monetary reasons but for all the non-monatery reasons you can think of ....

Last edited by mathjak107; 01-15-2009 at 03:30 AM..
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Old 01-15-2009, 03:10 AM
 
85,960 posts, read 83,490,800 times
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im in the process of writing an article for a publication, im calling the article " THE TRUE COST OF OWNING A HOME-OR WERE WE FOOLED?

although its just a collection of thoughts at the moment which have to be put in some grammatical shape non the less ill post it in its unfinished form as its pretty enlighning if you never thought about it.



although we call a home an appreciating asset its part of a much larger picture called your overall housing costs... because you live in it these costs are all paid by you and accumulate over a lifetime unlike rental property or investment property which you pay off the income . . the rise of the house in value over time merely offets the giant lifetime expenses of all the costs a homeowner has for the priveledge of owning that home..... your taxes, mortgage interest, repairs,renovation,maintaince,landscaping,insuranc e ,the gardner,the snow plow guy, the list goes on and on.

a lifetime in housing costs are really measured in who lost the least the buyer or the renter, not who made the most as those expenses whether you rent or buy usually eclipse the value of home appreciation over a lifetime. it never stops accumulating even if you sell a home and buy another... like rent just keep adding it all up over a lifetime.

soooooooo if your buying a house think of it as a consumption item, not an investment, think of it as a collector does of fine art, or your jewelry. its something you use and consume and costs you money. the fact a home rises may or may not mitigate the expenses to put you ahead of renting

buy a home for all the things a home can give you (good or bad)

the joy of owning something
doing as you please
the security of owning a payed off home
relatively fixed costs compared to renting

the fun of renovating and changing

etc

while technically a renter appears to be at a dis-advantage because hes not buying anything with his rent that may not be true in alot of areas or situations . here in the greater new york area the cost between renting and buying initially is 1/3 to 1/2 less a month and no massive down payment... it takes about a decade for the rent to equal the costs of buying at the 2 to 3% a year rent increases. each year though the renters advantage grows smaller and smaller as the rent goes up . all though just real estate taxes in alot of areas see bigger jumps the costs are offset with tax deductions on some expenses so its all about what the renter did with the money saved each month and down payment money that determines most of how a renter does.

you cant compare renting vs buying unless you have the renter putting equal amounts of money as well into an appreciating asset. thats where most comparisons fool us, they rarely do this. historically equities have outpaced home appreciation by 2x with alot less expenses in the early years of renting.

i can tell you because home real estate appreciates long term just above the rate of inflation in most markets a person who invests the money he planned to buy with and the money he saves each month compared with buying in nothing more than a mix of diversified index funds stands a great chance of coming out further ahead ...

infact i can say with my own expierience that if you were going to pay cash for the house like i did when i bought my house back in 1987 in queens ny and instead put that money in that same mix of funds (i did that also) i can tell you that today you can subtract out all the rent you would have paid for all those years and still have enough left to buy over 2 houses .....

you have to take a step back and stop looking at just one aspect of your overall cost of housing which is where everyone fixates THE HOUSE
and look at the total costs over a lifetime to know if you spent less renting or buying..... chances are they both cost you and took money out of the ole piggy bank and not made you richer .... housing costs are like food costs, they are expenses not gains

for a eye opening idea of expenses look at only 2 of the many components of expenses a homeowner has , taxes and mortgage interest,,, those two alone usually need the house to appreciate at least 3x and probley more in 30 years just to clear the after tax deduction amount you paid in...

most people pull out one piece of the puzzlel the house cost and what its worth without looking at the big picture namely a lifetime of housing costs and merely look at one aspect without the other parts... since we dont know how much future appreciation will be, we dont know rent increases, we dont know your future expenses or how many times you will sell a house and buy another and incurr more costs there is no answer.. in fact the biggest part on the renters behalf who chose to invest else where and rent is we dont know future market returns..... your trying to predict an outcome thats impossible... we dont know who will spend more in housing costs when all is taken into consideration.

picture it as if you were an investor.. you made big bucks on one investment (the house) but all your other investments tanked.... overall your down , the big gains of the one investment merely mitigated the overall loses


the jury is still out as far as whether the age old debate, is it better to buy or rent financially ?... there is no answer and probley never will be

Last edited by mathjak107; 01-15-2009 at 04:23 AM..
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Old 01-15-2009, 08:24 AM
 
Location: Idiocracy
904 posts, read 1,875,642 times
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You're right Mathjak about buying not necessarily being the right financial choice. The NYTimes made a neat tool to assess renting vs. buying-- many situations where buying is worse, especially if you're not planning to stay in your house for a long time:

http://www.nytimes.com/2007/04/10/bu...T_GRAPHIC.html
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Old 01-15-2009, 08:42 AM
 
85,960 posts, read 83,490,800 times
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Even their calculator is off somewhat as the whole deal for the renter is what he does with the extra money he has and what his invested return is,....
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Old 01-15-2009, 08:50 AM
 
Location: Idiocracy
904 posts, read 1,875,642 times
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Quote:
Originally Posted by mathjak107 View Post
Even their calculator is off somewhat as the whole deal for the renter is what he does with the extra money he has and what his invested return is,....
They do account for that. Click on "General" settings on the top right and you can change the rate of return on the investment..
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