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I am putting together one more article on this mess.
Yes, there will be a EO boom, and there will be a rental boom. All due to foreclosures and a small housing panic...then it is over and the prices fall all the way.
No matter what price you bought it at I can guarantee you will be able to buy the one next door for much cheaper in late 2010 and 2011...or 2012 or 2014...
Renting is cheaper, when you look at debt and not monthly payments. New types of mortgages will come out in the next few years after the rental boom/bust period. Things like assumable mortgages and the like. Wait for it....
Whatever you do...and I implore you...do not ride this small boom coming.
Make sure you are safe in your rental and hold onto your cash to buy a stable home in a few years.... The rental boom will start when the mass foreclosures start. As it increases, REO (real estate owned by banks) will sell briskly as rental prices go up. This intensifies efforts to foreclose so they can flip the properties.
The by the end of 2009, early 2010, the rental boom goes 'crash'...and the rentals will no longer support those investment properties.
All home values, in all parts of the US will now readjust sharply and quite suddenly. If you want to buy....wait unitl all that mess is over.
Yea, I sound crazy....and the article will be crazier.
But I have been right so far, and you lose NOTHING by waiting and saving money. NOTHING.
Not waiting means you are risking everything...credit, savings, future, extra money, peace of mind...everything.
They say people are gullible. They buy like crazy when the market or homes fall in prices and sell when they are going up. Well...the market is falling, both house and stocks... You have nothing to lose in pulling your cards from the table and coming back in 24 months.
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No matter what price you bought it at I can guarantee you will be able to buy the one next door for much cheaper in late 2010 and 2011...or 2012 or 2014...
...You have nothing to lose in pulling your cards from the table and coming back in 24 months.
Why not 48, or 72 or 144?
Inquiring minds want to know.
I hear real estate prices in Cuba have been steady for a long time.
Subscribing.
We bought 4 months ago and put 40% down. 1st time buyer here also but also a 1 time buyer. I never bought prior as we moved too much but now that we're stable we jumped in as we know this is our last hoorah so to speak. We bought w/ the intent to keep for the next 20 yrs easy...unless of course a hurrican wipes it off its foundation. We could've waited a few months and got a better rate from our CU @ 4.625% but 5.5% is fine and it's our only bill aside from taxes, utilities and food. Our CPA told us the same thing...to hold out until 2010 at the earliest but that didn't happen as the deal was good at the time. Could we have saved an extra 50K by waiting? Sure. But it is what it is...hopefully though the crash that is looming isn't as bad as they predict it be but I know better...it is.
I hope everyone is prepared...
I just have a question..... if people are supposed to wait until 2014 or 2015 or whatever, and for "new mortgage products" like assumable mortgages (which, btw, there really isn't anything stopping people from setting up an assumable mortgage right NOW... just takes a couple of lawyers and an open minded bank)..... how is that supposed to help anyone?
If I was a buyer who bought a house in 2004, paid 400k for it with a 350k mortgage (or more, depending on what sort of product I had).... and my house just went down to 200k in value, I am upside down by 150k or so..... who is going to want to assume my mortgage?
Assumable mortgages were a way to entice buyers into the purchasing houses back in the late 70's early 80's was inflation was double digit and interest rates on new mortgages were 14% or more. An assumable mortgage at half that meant that buyers could afford to pay a reasonable price for the property.
Lenders will not offer assumable mortgages if there is no upside for them -- inflation also "pumped up" the VALUE of the property. Right now the Fed and basically every other academic / reasearch oriented economist is desperately trying keep the GLOBE out of a deflationary spiral...
Supply and demand will determine the future of homes prices. Many people are still buying property today. For example, certain areas in Brooklyn, the Bronx and New Jersey are doing well; $250,000 or less. People like new and well kept properties that are close to work. It boils down to what people can really afford. There will be bidding wars for afforable nice properties. Believe me, there is a lot of crap on the market now. I like to go to open houses.
Subscribing.
We bought 4 months ago and put 40% down. 1st time buyer here also but also a 1 time buyer. I never bought prior as we moved too much but now that we're stable we jumped in as we know this is our last hoorah so to speak. We bought w/ the intent to keep for the next 20 yrs easy...unless of course a hurrican wipes it off its foundation. We could've waited a few months and got a better rate from our CU @ 4.625% but 5.5% is fine and it's our only bill aside from taxes, utilities and food. Our CPA told us the same thing...to hold out until 2010 at the earliest but that didn't happen as the deal was good at the time. Could we have saved an extra 50K by waiting? Sure. But it is what it is...hopefully though the crash that is looming isn't as bad as they predict it be but I know better...it is.
I hope everyone is prepared...
Congratulations on the purchase of your new home!
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Why 24 months?
We could've waited a few months and got a better rate from our CU @ 4.625% but 5.5% is fine and it's our only bill aside from taxes, utilities and food. Our CPA told us the same thing...to hold out until 2010 at the earliest but that didn't happen as the deal was good at the time. Could we have saved an extra 50K by waiting? Sure. But it is what it is...hopefully though the crash that is looming isn't as bad as they predict it be but I know better...it is.
