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This probably belongs more in the relationship forum, but I'd figure I'd start here.
My husband wants to purchase a home and is pushing and pushing me to agree. He brings it up every other day. I am dead set against it. The houses here in Charlotte continue to decline at a pretty rapid pace. I just feel like it's a foolish move to purchase a house right now. I don't have a desire to have a more expensive mortgage every month when I could have waited a few months or a year and had a cheaper mortgage/monthly payment.
But my husband is very emotional about this whole house thing. He thinks all the houses will be gone in a few months or a year and we will regret not purchasing a home right now. He thinks housing is going to do a V shaped recovery soon. (He obviously does not read *anything* I read).
I also really like where we are living now and everything is going well for now. I'm not really in the mood for any change.
So what should I do, should I continue to take a stand and we argue about this. Or should I just allow ourselves to potentially make a big financial mistake. And if I'm right I can say I told you so, hehe.
I would think that if your are buying with the idea of selling in a few years to make a profit, that might not be a good idea. Although the economy might turn around and make such a purchase profitable in the future.
If you are buying to have your own place in a good area that you can enjoy for years to come and improve along the way, you should consider it.
If you do buy get a fixed rate mortgage. Dont even consider a variable rate mortgage.
Obviously every local market varies but it also can depend on what type of property you're looking to buy and in what neighborhoods.
Where I live (California Central Coast) the low end cheaper (but still decent) properties that have already dropped 50+ percent are starting to bottom out, generating multiple bidding wars and selling fast. It's actually hard to get those properties because you're usually bidding against 12 or more people to get them so, IMO, that's a classic buy signal for those properties.
But the higher end, more expensive stuff that hasn't dropped as much, is still dropping but, at a much slower pace ... it's probably worth waiting to buy those because they probably will come down some more.
To expand on what sheri says -- it is important to realize that neighborhoods with lower than average turn over are ALL AROUND more desirable. The people that live in such areas probably are in no hurry to sell, so if prices decline it won't be as dramatic. If they have school age kids they probably won't be uprooting them. Odds are also good that the neighborhood is close to multiple stable employment opportunities.
The mantra of real estate has always been and will remain: Location, location, location.
Obviously I don't want to overpay, and this is even more important when the broad market is declining. One of the best ways to not overpay is to seek out a rare seller in a stable desirable area. The list includes all the stuff that happens regardless of the economy: divorce, estate settlement, executive relocation. Now there are also REO/ foreclosures (in the best areas these are quite rare) and short sales.
Some of these might have minor condition issues, again that is a great way to buy for a little less than a perfect property and with some sweat equity you can often "lock in" a gain by doing small upgrades.
Don't let your hubby's emotions sway you -- the situation is really unlikely to see ALL the inventory dry up. The both of you should go over ALL you finances and take a hard look at a lot of "worst case" scenarios so that you do not overbuy. That said, the financial upside of owning vs renting ought to be examined pretty closely -- don't count on an appreciation for quite some time, just look at what you get for your rent now vs the space/convenience you would get from spending a similar TOTAL amount on MORTGAGE, TAXES, MAINTENANCE, UTILITIES -- in some places that equation looks far better than others. If / when prices do come down it is not likely that they'll bounce right up, so take your time and scout out all the alternatives.
This probably belongs more in the relationship forum, but I'd figure I'd start here.
My husband wants to purchase a home and is pushing and pushing me to agree. He brings it up every other day. I am dead set against it. The houses here in Charlotte continue to decline at a pretty rapid pace. I just feel like it's a foolish move to purchase a house right now. I don't have a desire to have a more expensive mortgage every month when I could have waited a few months or a year and had a cheaper mortgage/monthly payment.
But my husband is very emotional about this whole house thing. He thinks all the houses will be gone in a few months or a year and we will regret not purchasing a home right now. He thinks housing is going to do a V shaped recovery soon. (He obviously does not read *anything* I read).
I also really like where we are living now and everything is going well for now. I'm not really in the mood for any change.
So what should I do, should I continue to take a stand and we argue about this. Or should I just allow ourselves to potentially make a big financial mistake. And if I'm right I can say I told you so, hehe.
I don't know the Charlotte market at all but I will say this...I've heard interest rates will creep back up soon so even if prices go down more it probably cancels out more or less. I don't know what home prices will do, you need a crystal ball for that. If you want to buy a home, plan to live there for at least a couple of years, then you'll probably be fine whether you buy now or a year from now. However, as in any asset market, you never know for sure. If you want a home to have a home and something of your own, then go for it. After all, it's a home first and an investment second.
This probably belongs more in the relationship forum, but I'd figure I'd start here.
My husband wants to purchase a home and is pushing and pushing me to agree. He brings it up every other day. I am dead set against it. The houses here in Charlotte continue to decline at a pretty rapid pace. I just feel like it's a foolish move to purchase a house right now. I don't have a desire to have a more expensive mortgage every month when I could have waited a few months or a year and had a cheaper mortgage/monthly payment.
But my husband is very emotional about this whole house thing. He thinks all the houses will be gone in a few months or a year and we will regret not purchasing a home right now. He thinks housing is going to do a V shaped recovery soon. (He obviously does not read *anything* I read).
I also really like where we are living now and everything is going well for now. I'm not really in the mood for any change.
So what should I do, should I continue to take a stand and we argue about this. Or should I just allow ourselves to potentially make a big financial mistake. And if I'm right I can say I told you so, hehe.
I think being able to say " I told you so", would certainly not be worth it in this case as you would suffer for a long time and thus more fights.
I almost bit the bullet a few weeks ago and made an offer on a home that is being sold LP.
During the time we were waiting to hear back from the bank I lost my job. We could have afforded the home on my husbands salary but I got cold feet anyways and backed out.
I think you should trust your instincts and get your husband to read the housing bubble blog.
I would love to have him explain how this V shaped recovery is going to be made possible with every single lending institution clamped down on lending?
The new norm is 20% down payments, excellent credit and proof of income.
The bottom line is the price of homes needs to be in line with incomes. Now that the toxic lending is gone how can most people afford to make payments with a huge mortgage and a small income?
You will be safe to buy when the median price of a home is priced 2 - 2.5 times the median income for that area.
As far as your husband worrying that all of the good homes will be gone, he shouldn't as when the market finally does bottom all homes will be priced properly again.
They break it down by city as well as ranking. Salem, OR (my town) is the 14th most overvalued city in the nation, according to these guys. Charlotte was 8.9% undervalued (which falls into the fairly valued range)...
This doesn't really help your case, but I think you need to do some local reading about Charlotte. If you go to ActiveRain and punch in Charlotte, you can read some local real estate agents blogs about the city and look at market reports.
Location: Halfway between Number 4 Privet Drive and Forks, WA
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Quote:
Originally Posted by sheenie2000
This probably belongs more in the relationship forum, but I'd figure I'd start here.
My husband wants to purchase a home and is pushing and pushing me to agree. He brings it up every other day. I am dead set against it. The houses here in Charlotte continue to decline at a pretty rapid pace. I just feel like it's a foolish move to purchase a house right now. I don't have a desire to have a more expensive mortgage every month when I could have waited a few months or a year and had a cheaper mortgage/monthly payment.
But my husband is very emotional about this whole house thing. He thinks all the houses will be gone in a few months or a year and we will regret not purchasing a home right now. He thinks housing is going to do a V shaped recovery soon. (He obviously does not read *anything* I read).
I also really like where we are living now and everything is going well for now. I'm not really in the mood for any change.
So what should I do, should I continue to take a stand and we argue about this. Or should I just allow ourselves to potentially make a big financial mistake. And if I'm right I can say I told you so, hehe.
Perhaps home ownership just isn't in the cards for you.
Says who? You? That's as out of whack as the peak price in CA in 2005.
Actually there is standard housing affordability index that measures median home price vs. median incomes. Typically home prices are considered affordable for an area if that ratio is at 2.5-3.0. I think that is what this poster is referring to is that index.
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