Will you buy a house today in this mkt? (Charlotte: sales, real estate market)
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I was in the position to buy back at the beginning of the year. Closed April 30th by purchasing an inventory home from a builder that needed to unload it. Locked in a 4.5% rate.
Got my free 8K by the end of June from the government, which I was able to bank and would provide 7 months of mortgage payments if dedicated solely to that, probably 4 months of living & mortgage expenses.
My alternative was accepting that my old apartment complex wanted to raise my rent 50 dollars a month which was only a hundred dollars less than my mortgage which included taxes and home owner's insurance.
It certainly isn't advisable for everyone, but four months later I'm comfortable with my decision and am loving my new house.
You know I was thinking of responding to this thread when I first saw it this morning, but then saw the comment about realtors and thought maybe I'd better back off and see where the thread leads. Anyway, most of you posted what I was thinking -- there is no right answer that applies to every person. For some renting will be better for the time being, for others I truly believe it is a good time to buy. Interest rates are low, some buyers can take advantage of an $8,000 tax credit, there are some other tax benefits to buying...
These are potential financial advantages for some buyers -- IMO the tax credit and interest rates are big ones. Others may not be so tangible, such as a sense of community and place to raise your family.
Of course prices could drop further. I don't have a crystal ball (and neither does anyone else I don't think) so nobody really knows. But the only thing any of us can do is evaluate the situation at this point in time and make the best decision for you right now. If you are so worried about property values dropping further that you can't sleep at night, then it probably is not the right time for you to buy. But for others, it truly is a good opportunity.
And that there is the best answer I have seen in this thread.
Look, I don't want anyone to take my statement as saying I'm against owning a home. I'm not. It was the best thing for my family to do (purchasing a home). However, just because rates are low and prices have fallen, it still might not be the best time for certain situations. Heck, last year we had people on here screaming that back then was the best time to buy.....
Let me repeat, it depends on your INDIVIDUAL situation...
No, the only difference here is I got nothin' to lose by not buying a house. Renting is typically cheaper even if your home maintains its value.
Quote:
As you go to a lower price home the chances of losing more money on devaluation than you'd throw away with rent (~$36K over 3 years!!!) obviously gets smaller and smaller. Personally I'd rather lose $15K on my house than pay a property owner $36K to pay HIS mortgage...
Thing is, Native, I'm renting at about a 1996-level price, whereas if I buy, I'm buying at a 2009-level price. That's the key there, that you're leaving out of your little calculation. I'm piggybacking on somebody else's cheap mortgage.
There are about a dozen other holes in your little calculation, but I'll leave it at that. The faster my ignorant peers go out there and load up on debt, the faster we'll all figure out that there aren't enough buyers to support current prices.
No, the only difference here is I got nothin' to lose by not buying a house. Renting is typically cheaper even if your home maintains its value.
Thing is, Native, I'm renting at about a 1996-level price, whereas if I buy, I'm buying at a 2009-level price. That's the key there, that you're leaving out of your little calculation. I'm piggybacking on somebody else's cheap mortgage.
There are about a dozen other holes in your little calculation, but I'll leave it at that. The faster my ignorant peers go out there and load up on debt, the faster we'll all figure out that there aren't enough buyers to support current prices.
lighten up Francis. we have fun. it doesn't take Sir Isaac Newton to figure out there was a real estate bubble so don't go awarding yourself the Fields Medal just yet.
I don't purport to know diddly-squat about you or your dilapidated flophouse. I'm glad to hear it's working out for you though...
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