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Old 12-23-2008, 11:08 AM
 
Location: US
1,189 posts, read 3,670,125 times
Reputation: 822

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Quote:
Originally Posted by chet everett View Post
If you can rent a place for FAR LESS than you total monthly cost of owning then maybe it does not make sense to buy. I think MOST people are smart enough to figure out that over extending themselves to 'buy' a house with a plan to "get rich" by flipping it is not realistic anymore.

If you can get a nice rate on fixed term mortgage, and a good value on the property it might make sense.

Bottom falling out? Who really knows...
Not around here. If anything I would be slightly saving money by owning something in what I consider affordable. (I am a cheap SOB)

Quote:
Originally Posted by Thatguywho View Post
that cute home will be a lot cheaper in a few years. All you do by buying it now is over pay for it.

If you can handle the payments, get a fixed mortgage, and are planning on not moving for 10 years and do not care about the equity issue, then you could buy it and be happy.

but if you have to move you will not be able to rent it out or sell it without a loss each month or at sale.

Since you are likely putting money down, that is money down the drain. You could get it much cheaper later.
I see you are in Florida? I can't imagine the real estate market here is remotely similar to that in Florida. There are not nearly as many condos and highrise apartment setups. You really think prices are heading down nationwide? What new mortgage systems are coming in that you mentioned?

The comments from this thread are pretty amusing: http://forums.fark.com/cgi/fark/comm...IDLink=3516406

Last edited by J Arp; 12-23-2008 at 11:46 AM.. Reason: edit edit linky link...
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Old 12-23-2008, 11:13 AM
 
16,434 posts, read 19,641,730 times
Reputation: 9550
wait until property taxes go up before you decide to buy. Not only will property prices go down, but taxes will absolutely go up. A lot.
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Old 12-23-2008, 11:21 AM
 
242 posts, read 673,601 times
Reputation: 192
Quote:
Originally Posted by J Arp View Post
I see you are in Florida? I can't imagine the real estate market here is remotely similar to that in Florida. There are not nearly as many condos and highrise apartment setups. You really think prices are heading down nationwide? What new mortgage systems are coming in that you mentioned?
Some areas drastically went up and some did not, but all went up.
Although the numbers may seem hugely different, they are not.

In florida homes shot up 3, 4, 5 times in value. And the market allowed for it. They must fall back to the normal 1x value.

In less 'crazy' areas, the homes still shot up in value relative to the economy of the area. Where as 'some' parts of florida could see a 300k increase other parts saw an increase of a 50k home to only 150k.

Other areas in the country had the same relative upshoot for their area.

A home over valued by 10,000 in South Florida is nothing to the market. A home in rural alabama over valued by 10,000 may not realize that price again for 12 years.

It hurts just as much no matter where you are. Home values, sales, prices have all dropped and still are. Heck, the NAR just released October's numbers. Biggest decline since the great depression.

Rural areas are even harder hit in the depression, that is just fact. Makes paying for that home extrememly hard. And almost impossible to find a buyer due to low demand.

Yea, its gonna hurt to buy now.
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Old 12-23-2008, 01:08 PM
 
242 posts, read 673,601 times
Reputation: 192
http://www.bloomberg.com/apps/news?p...zUE&refer=home
U.S. Economy: Housing Prices Collapse at Near-Depression Pace

Dec. 23 (Bloomberg) -- Sales of single-family houses in the U.S. dropped in November by the most in two decades and resale prices collapsed at a pace reminiscent of the Great Depression, dashing speculation the market was close to a bottom.

“Housing is still in a freefall,” , chief economist at IHS Global Insight in Lexington, Massachusetts.

Last edited by Waterlily; 12-23-2008 at 08:35 PM.. Reason: copyright issues
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Old 12-23-2008, 04:12 PM
 
3,722 posts, read 4,711,541 times
Reputation: 4751
Quote:
Originally Posted by Thatguywho View Post
well....with the coming rental boom this year, people will get nutty and pick up those foreclosures quick.

When the rental bust happens shortly thereafter.....it will bottom out completely.

And anyone who did not buy a house and waited til late 2010 or 2011 or even later will have a lot less debt and probably be able to get a real cool mortgage when the new systems are introduced. I would say assumable mortgages are in our future.

Not waiting is just not a good way to go. There is no harm in waiting...


and, for today, that is the last of my public service annoucements. You have been alerted and warned...the rest of your future is in your hands all you first time home buyers.
Thank you for this advice. I'm going to sit, wait, and save while I still can.
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Old 12-23-2008, 04:56 PM
 
1,831 posts, read 4,864,615 times
Reputation: 666
Quote:
Originally Posted by Thatguywho View Post
There is no harm in waiting...
Maybe there's no harm but, where I live in California there's multiple bidding wars for properties. The cheaper they get, the more bidders there are so ...

Good luck getting anything unless you can pay cash for the whole thing, which is what the banks want.

People say keep waiting. Ok but, how do you actually get these deals? It's only going to get worse.
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Old 12-23-2008, 07:59 PM
 
Location: Earth Wanderer, longing for the stars.
12,408 posts, read 16,923,984 times
Reputation: 8800
Quote:
Originally Posted by chet everett View Post
If you can rent a place for FAR LESS than you total monthly cost of owning then maybe it does not make sense to buy. I think MOST people are smart enough to figure out that over extending themselves to 'buy' a house with a plan to "get rich" by flipping it is not realistic anymore.

If you can get a nice rate on fixed term mortgage, and a good value on the property it might make sense.

Bottom falling out? Who really knows...
If I were REALLY certain of my continued employment, I might take on a mortgage. If things in the economy do get worse, and most people seem to think it will, few of us will be assured of continued employment, at least at our present salary levels.

Also, if I were selling a more expensive house and could pay cash, it would make sense.

I would be very wary of any continued financial commitment at this time. I would try to have living arrangements below my present means and save as much as possible. If you weather this financial storm unscathed property will still be inexpensive because most people will not have the down payment that you do for a house. If something does hit you, you will be grateful for not having that mortgage and some savings.
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Old 12-24-2008, 12:54 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
24,527 posts, read 42,151,315 times
Reputation: 26790
Quote:
Originally Posted by Thatguywho View Post
...
and, for today, that is the last of my public service annoucements. You have been alerted and warned...the rest of your future is in your hands all you first time home buyers.

Thank goodness, I feel so relieved by this timely advice. I will sleep much better tonight.

Thank you so much for this intellectual sharing
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Old 12-24-2008, 09:09 AM
 
Location: in my imagination
11,583 posts, read 18,973,922 times
Reputation: 8069
Thanks thatguywho,your posts make alot of sense but.....

It depends on a persons situation whether now is the time to buy or not.In my case I did sell my house in Miami at the tail end before prices started plummeting so I gained a decent sell.Been keeping it in CD's so far riding out the market but now those CD's are making little interest.Im paying $800 a month in rent and storage that I wouldn't have to if I bought a house paid off.2% or 3% CD interest with money in the bank doesn't compete with holding on to it for house prices to drop anymore.Money in the bank at this point I'll be lucky to make 3k interest for the year while if I use that money to buy a house I'll be saving $800 a month now.....

So in my case if I can find a good deal and the right place it makes more sense for me to buy a house cash now,then I won't be paying out rent and storage and will be pocketing most of my money every month specially since the interest isn't there anymore compared to what I am paying out in rent.

I'm looking,not in a hurry but if I do find a house I like at a good price I might go for it.Plus,renting and living with my friend is cramping my style.It was profitable to do so for a while but not so much anymore.
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Old 12-24-2008, 09:34 AM
 
268 posts, read 740,623 times
Reputation: 185
Quote:
Originally Posted by sheri257 View Post
Maybe there's no harm but, where I live in California there's multiple bidding wars for properties. The cheaper they get, the more bidders there are so ...

Good luck getting anything unless you can pay cash for the whole thing, which is what the banks want.

People say keep waiting. Ok but, how do you actually get these deals? It's only going to get worse.
It's the same in my part. Bare land has not gone down in value, AT ALL! Bidding wars for foreclosed properties, MORE THAN THE ORIGINAL ASKING! Banks are not accepting lower offers, they sit on the house and let it rot rather than move the property. Why should they, Uncle Sugar will buy it eventually for the price of the original loan.
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