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It's simple, you won't ever see your downpayment again when prices drop. You can put down 30k and buy a 300k house, then in 3 yrs when you try to sell and only get 270k, you've lost your downpayment.
I know many people right now that have to sell due to a job relocation, etc, and they are going to lose their entire down payment from when they bought 2 yrs ago.
Buying is a bad idea right now unless you plan on living there for a min of 10 yrs.
How many times must it be said???????????????? Anyone expecting to make a dime on a house they have lived in for only a year or two in a buyers market is just nuts. I have no sympathy for folks that short-sighted. I understand people get transferred or lose jobs, but then rent the thing out and wait the market out for pete's sake. You should NEVER buy a home and expect to own it such a short time without potentially losing some money. Home ownership is still a great imvestment - but you have to be in it for the long term, just like ANY good investment.
Please don't panic, this is a great time to buy a home if you have the down payment and credit scores to obtain a good loan. There are some great deals to be had in this current buyers market And if you are careful to buy in a good, stable area you would not be very likely to lose money even after just 2/3 years - though staying put for 8 to 10 would ensure a much bigger return on your investment.
If things are going to be flat to down for the next 2 to 3 years and only recover later on, isn't that a good reason to wait to buy? I keep seeing "it's not a bad time to buy, and if you stay for a decade you might make good money", but why not just skip the price drops in the next few years and buy after the market has stabilized? It seems that the "stay a decade so you don't lose money" is just a rationalization that prices are going to drop, but people should buy anyway. That hardly seems to be in the best financial interest of the buyer.
Despite the huge imbalance of supply and demand (11 months of inventory) overall prices have just started to drop in Charlotte. With so much excess supply sitting around, what looks like a good deal now might very well be an overpriced house after a year or two of price drops have taken place to get supply and demand back in line. What's the urgency to buy in that sort of situation? Take it slow, wait for the market to come back to a more balanced 5-6 months of inventory, and see where prices end up.
Because everyone and their grandmother is moving to Charlotte.
This is the reason why we didn't experience a large decrease in prices.
What do you think happens when rates drop?
People start buying again.
There are soo many nice foreclosures being sold on the market today.
Soon there will be so many people from other states buying that there will be 5-6 bids per house.
The Charlotte market will not drop like what happened in California or South Fl. Buy now or you will be saying "I wish I would've purchased a home when I had the chance"
I have a few realtor friends that are buying up the foreclosures, and SELLING THEM less than 3months.
Quote:
Originally Posted by KCfromNC
If things are going to be flat to down for the next 2 to 3 years and only recover later on, isn't that a good reason to wait to buy? I keep seeing "it's not a bad time to buy, and if you stay for a decade you might make good money", but why not just skip the price drops in the next few years and buy after the market has stabilized? It seems that the "stay a decade so you don't lose money" is just a rationalization that prices are going to drop, but people should buy anyway. That hardly seems to be in the best financial interest of the buyer.
Despite the huge imbalance of supply and demand (11 months of inventory) overall prices have just started to drop in Charlotte. With so much excess supply sitting around, what looks like a good deal now might very well be an overpriced house after a year or two of price drops have taken place to get supply and demand back in line. What's the urgency to buy in that sort of situation? Take it slow, wait for the market to come back to a more balanced 5-6 months of inventory, and see where prices end up.
Loves I love ya and all however not everyone can afford to rent out their homes, it is risky and not everyone wants or can take that risk...so the fact that people are loosing jobs or relocating which most of the time isnt voluntary I dont think they anticipated after moving into their homes a year or two ago that things were going to be this bad...The fact that we were in that situation at one time we didnt have very many choices and the market had just turned to crap up north, but we got lucky not so many people are...
Because everyone and their grandmother is moving to Charlotte.
This is the reason why we didn't experience a large decrease in prices.
What do you think happens when rates drop?
People start buying again.
There are soo many nice foreclosures being sold on the market today.
Soon there will be so many people from other states buying that there will be 5-6 bids per house.
The Charlotte market will not drop like what happened in California or South Fl. Buy now or you will be saying "I wish I would've purchased a home when I had the chance"
I have a few realtor friends that are buying up the foreclosures, and SELLING THEM less than 3months.
Yeah people are starting to buy and hold or still flip. Houses I am putting offers in are having multiple offers already. Yes these are foreclosed properties. I am trying ot build the portfolio still and it looks like so are others
It does not help being an election year but at some point there will be an upswing. Whoever times it right could do well. I pray that I time this right
Yeah people are starting to buy and hold or still flip. Houses I am putting offers in are having multiple offers already. Yes these are foreclosed properties. I am trying ot build the portfolio still and it looks like so are others
It does not help being an election year but at some point there will be an upswing. Whoever times it right could do well. I pray that I time this right
Do you think it is a good time to invest? dh and I were talking about this last night..Ive been a realtor for 7 years but honestly the market was hot most of the time, so Im not sure if it is good or not good to buy them now and rent them out?
Do you think it is a good time to invest? dh and I were talking about this last night..Ive been a realtor for 7 years but honestly the market was hot most of the time, so Im not sure if it is good or not good to buy them now and rent them out?
If your an investor IMO and I am doing this personally and believe for it to work now is the best time to buy. Interest rates are low etc etc but with the credit crunch its getting harder for investors to get loans. Get em why you can because in 6 months it might not be there. People are scared to buy so the rental pool is getting bigger.
Again, this is what I am doing personally It might not work for you or anyone else!
Loves I love ya and all however not everyone can afford to rent out their homes, it is risky and not everyone wants or can take that risk...so the fact that people are loosing jobs or relocating which most of the time isnt voluntary I dont think they anticipated after moving into their homes a year or two ago that things were going to be this bad...The fact that we were in that situation at one time we didnt have very many choices and the market had just turned to crap up north, but we got lucky not so many people are...
Life happens - and sometimes it is messy. Folks like cagman's friends who bought their homes such a short time ago and now must move, should either rent the property so they won't loose so much of what they have put into it, or take the loss in money and move on. If a house has depreciated THAT much in 1-2 years they paid too much for it in the first place.
Renting out a home is not that risky when you get a good rental agency to do the work of screening people and maintaining it in your absence. Sure, you'll pay a monthly fee, but it can't possibly be more (or even close) to the thousands and thousands you'll lose by selling right now if you bought high and now must sell low.
8-12 % of collected rent. Plus any fees associated with evictions etc....
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And if you are careful to buy in a good, stable area you would not be very likely to lose money even after just 2/3 years - though staying put for 8 to 10 would ensure a much bigger return on your investment.
