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I have actually question about the North Dallas housing market, the price here still seems to be going up. I was thinking about buying a house but in popular cities like Plano and Allen, Texas the price still is going up. Anyone sees a drastic fall in housing price in North Dallas or will just keep on going up?
One way I can quickly tell I am dealing with a ludicrous bullshhter is when they start the “I garontee it†routine. Whatever “It†is. Does not seem to matter what they are claiming to guarantee (with absolutely no capacity to back up said guarantee.) As if bs-ing someone added credence to their claim.
Overall, I agree that varying by area and present and future conditions there is considerable downside risk to purchasing real estate in the US for now and probably the next two to three years.
However, if you correctly determine your capacity for the downside and factor it in, it does not make that big of difference. For example – if you considered the likelihood of a ten percent drop per year for the next three years, and you could afford a $10,000 expense per year, that would mean you could very comfortably afford to start with a $100,000 property and let it go down $10,000 a year – which may be viewed as the equivalent of $800 a month “rent†(not considering taxes). Many folks can afford that. As potential buyers we consider that tolerable.
I am not saying that 10% per year for the next three years is some magic number. It is just a number to do the math with. Pick your own according to your own risk tolerance, location and conditions. Everyone can do their own risk evaluation and figure what is good for them.
Another example could be a $500,000 house in area where houses are dropping 10% or more per year. That comes out a loss of $50,000 per year or $150,000 across three years – that might not be so tolerable. I would not consider it so.
Point being – If people are going to stop being harmed by following mindless “advice†whether BUY NOW! -- or just as stupid -- DO NOT BUY NOW! They are going have to stop avoiding thought and instead think their situation through.
Do not buy a home now. You will regret it. For the very well off it will just be a bit of a loss. For regular joes and janes, who I am talking to, it will be devestating.
Why do that to yourselves. There is NO harm in just waiting. Stop drinking the 'buy now' kool aid.
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Meh - you may well be right dollar wise but you are forgetting a very important element in purchasing a house. The human factor. We traded up in 2007 and paid $200k less than it was assessed at in 2005. Our 2009 assessment values it $150k less than our purchase price. So we lost $150k on paper. So what. We considered selling our smaller house and renting a larger one but in the end I wanted my kids grow up and make memories in their house. One they can plan on being in till they graduate high school. One that they can paint their room a hideous color and stick posters all over the wall and not worry about the landlord getting pissed. One they can have a dog in. One they can drive by in 30 years and tell their spouse, "I grew up here". And the list goes on.
We will see how it plays out financially when the game is over....but $'s are not the only factor in play here. Actually I would caution people to buy a house they can actually afford (imagine that) rather than not to buy at all for 10 years.
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ANd possible allow his income to go up?
