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We were in a smaller house, and then when the prices went down, we sold our house and are now building the house which we will retire from. About 1.5 yrs ago, this same house would have gone over 150K more than what we are paying for it. We sold our house a little less than what its value was ( prices held in our area, did not go down that much, and owning our last house for 9 years helped too). Took advantage of the slump and upgraded. Think we did good. Comfortable with the house payment, we know the area is good, and we are already holding equity in the home ( house prices are going up here again, the same model house is now 17K more, and the builder has cut down on the incentive amounts that were given to us).
We were in a smaller house, and then when the prices went down, we sold our house and are now building the house which we will retire from. About 1.5 yrs ago, this same house would have gone over 150K more than what we are paying for it. We sold our house a little less than what its value was ( prices held in our area, did not go down that much, and owning our last house for 9 years helped too). Took advantage of the slump and upgraded. Think we did good. Comfortable with the house payment, we know the area is good, and we are already holding equity in the home ( house prices are going up here again, the same model house is now 17K more, and the builder has cut down on the incentive amounts that were given to us).
Where are you located? This sounds similar to what we did. I will warn you, however, the skeptics will literally call you a liar when you claim the house you're building would have cost 150k more a year and 1/2 ago. I believe you, no question, but the glitch is where you claim prices held in your area where you previous home was and that you can't have it both ways. Clearly, building new in this market and buying existing are 2 different games, but many do not understand this. We know our home we built has gained equity, no matter how small that might be, and I have been called a disillusioned, head in the sand "fool" for believing this. Congrats on your new home. You will, undoubtedly, love it, and glad to see there are others who understand the RE market, no matter what it might be doing.
I'm putting my condo on the market in February and I can wait to buy a house. I just hope the interest rates don't go up. This is lower than they've been in 45 YEARS!! The only reason I will rent is if I can't find the exact house I want by the time I sell mine. And it's not all doom and gloom. I have friends who bought their house in '74 for $60,000 and now it's worth $4,000,000 +.
We closed on the sale of our house yesterday, and i CANNOT wait to buy!! Our mortgage will be the same or cheaper and at least half of what renting will be. If we do not find a decent house, we will still move to our new location, rent and continue to look for a new house.
Yes, excited to buy again....only if it's a wonderful deal in an area with jobs and plan to be there 5 yrs or more. Mainly for the low interest rate we locked in 4.75% for 30 yr fixed. Those that are waiting 2 years to buy will have a wake up call when the interest rates are 13%! Look at the 80's. History repeats itself. You will be kicking yourself in the bum for not buying today!
Yes, excited to buy again....only if it's a wonderful deal in an area with jobs and plan to be there 5 yrs or more. Mainly for the low interest rate we locked in 4.75% for 30 yr fixed. Those that are waiting 2 years to buy will have a wake up call when the interest rates are 13%! Look at the 80's. History repeats itself. You will be kicking yourself in the bum for not buying today!
But I'm guessing that if interest rates jump to 13% over the next two years with a declining market, prices of homes are going to continue to decline. That is the dilemma with buying right now.
If you have to move and are in the market to buy right now, the numbers make it difficult to push me to buy. In your example, yes, just comparing what you payment would be if the interest rate increases makes a good argument to buy. But, you also must factor in that prices will continue to decline if interest rates increase.
Then you must also factor in your own situation. If you are renting and are in a position to continue saving towards your downpayment, you must factor in the larger downpayment vs. financing a larger amount.
The ideal situation if you believe interest rates will climb that high is to keep saving and then buy a home with cash when the interest rates climb and home prices drop even more!
Yes, excited to buy again....only if it's a wonderful deal in an area with jobs and plan to be there 5 yrs or more. Mainly for the low interest rate we locked in 4.75% for 30 yr fixed. Those that are waiting 2 years to buy will have a wake up call when the interest rates are 13%! Look at the 80's. History repeats itself. You will be kicking yourself in the bum for not buying today!
Home values will decline as interest rates rise.
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