[SunnyDog]

Originally Posted by Floridamex

I think buying a house now is a great thing to do. With 70 years of no natonal loss in value what are the odds of a crash. My grandfather got some land in Florida in 1944 to raise cows. In 1923 that land was worth 1.2 mil
in 1944 he paid 30k. What are the odds. do the Math.

Please don't tell the realtors here that people can lose money on real estate. Reality checks hurt.
Of course I have no guarantee of this, but 2-4 years from now I see myself owning a nice condo here while its current owner will be back up north shoveling snow. And for realtors, AutoNation's always hiring.

[Tampa Red]

Why be sheep? Think for yourselves.

Prices will never go back to 3 years ago. Interest rates could easily double, remember Carter?

If you're waiting for dramatic decreases that might be the reason.

Why not look around and make some low ball offers? Somebody might bite in a buyers market.

The ones who waited til they were absolutely sure prices were going up are the ones who bought at the top of the market.

[SunnyDog]

You folks seem to be missing something here I took for granted was understood: Here in South Florida, you got no business buying property unless you got $60K household income. I don't, and many, many here do not make that money. You can't afford it at today's prices and carrying costs if you're not making at least $60K/yr. Read through this forum and much of it is dismay over how they can't afford where they live anymore, but how many of them were slicing it thin in terms of affordability in the first place? Probably most were. Make less than $60k/yr here household as a newcomer to the market right now and you're either a renter, an overextended buyer, or are looking to move elsewhere. Take your pick, I took mine.

[Shores9]

Originally Posted by SunnyDog

I myself rent a $1350/mo condo, the unit above me is for sale for $500K. Paying $1350/mo housing costs would hardly allow me to buy a 1 bedroom condo in the 'hood

Not my words but yours remember

[Need_affordable_home]

Originally Posted by SunnyDog

My 1 bedroom ain't in the hood. The houses across the intracoastal from me (i"m on the beach) are $3 Million dollars. I had my previous landlord try to raise rent on me 2 months ago--(snip)I got plenty of cash set aside for this--not through gifts or lotto winnings, but from money I earned through working. Meanwhile, I got plenty invested in stocks, bonds, money markets making very nice returns. I have the kind of financial cushion that many homeowners in Florida are now wishing they had.

Smart guy! But on a serious note, will you relocate out of Florida if house prices dont correct soon enough? Do you want to rent for life or live the american dream even if its in another state?

Originally Posted by tallrick

Why not just move to a place you can afford, put a nice down payment and enjoy the lower stress life. Make investments and if you're crazy take all that money and move to Florida. I I needed a house that's what I would do.

This is what im doing rather than rent for life in south Florida. Yes rent is cheap in comparsion to buying in south Florida(and other hotspots) but I want a piece of the american dream and I can get that for $50k in a town in WV or OH. Far cheaper than renting in south Florida, even if house prices dont really appreciate in "the middle of nowhere" OH or WV I save like $1500 a month that rent would cost in south Florida!

Originally Posted by Tampa Red

Why be sheep? Think for yourselves.

Prices will never go back to 3 years ago. Interest rates could easily double, remember Carter?

If you're waiting for dramatic decreases that might be the reason.

Why not look around and make some low ball offers? Somebody might bite in a buyers market.

The ones who waited til they were absolutely sure prices were going up are the ones who bought at the top of the market.

This will still benefit those who buy with at least 50% down or better yet 100% down. I will be buying 100% down when I get my own house.

Originally Posted by SunnyDog

You folks seem to be missing something here I took for granted was understood: Here in South Florida, you got no business buying property unless you got $60K household income. I don't, and many, many here do not make that money. You can't afford it at today's prices and carrying costs if you're not making at least $60K/yr. Read through this forum and much of it is dismay over how they can't afford where they live anymore, but how many of them were slicing it thin in terms of affordability in the first place? Probably most were. Make less than $60k/yr here household as a newcomer to the market right now and you're either a renter, an overextended buyer, or are looking to move elsewhere. Take your pick, I took mine.

$60k a year will get you a nice mobile home(and pay lot fees) or rent or buy a 1/1 condo(average price is $150k!) If you want a detached house, your gonna have to relocate.

[tallrick]

When my parents bought their new home in 1960 it was 15,000 and dad made 5,000 a year more or less, 3 X income = home price. The same house, 46 years later sells for 400,000 you would need to earn 133,333 a year to swing that today. Remember this is for a 2,000 sq foot dump with a 75 x 100 lot. There's no way this can stay this high. Also for many years the US had income growth, something we no longer have. You real estate optomists are crazy if you think prices will hold up.

[firemed]

Originally Posted by Tampa Red

Why be sheep? Think for yourselves.

Prices will never go back to 3 years ago. Interest rates could easily double, remember Carter?

If you're waiting for dramatic decreases that might be the reason.

Why not look around and make some low ball offers? Somebody might bite in a buyers market.

The ones who waited til they were absolutely sure prices were going up are the ones who bought at the top of the market.

I dont need to rent. but I tell everyone to sit back and wait . The Florida Association of Realtors show a 47-month supply of homes for sale. Thats not for sale by owner or other sellers that dont list in the MLS. The market is in distress. The NAR is spending money on ad's to Buy Now. Sellers are starting to feel the heat. So far all the predictions have been wrong. I look at it this way. Interest rates could easily double and that down payment money will grow if you put it in a C/D or money Market. But if you have a ARM your stuck. So Muggy is right. Why buy ? cause if you don't thats 6% off the top someone won't get.

[bale002]

Originally Posted by SunnyDog

Here in South Florida, you got no business buying property unless you got $60K household income.

Even this figure sounds too low, unless you refer to a single person looking to buy a studio or one bedroom in a non-prime area. What is your income/buy price multiplier? My understanding is that this multiplier is three times income equals maximum buy price.

Granted there are some studios or one-bedroom condos available for $180,000, but I just wanted to confirm the multiplier you are assuming, or at least how you derived the $60k figure.

[/quote]... Make less than $60k/yr here household as a newcomer to the market right now and you're either a renter, an overextended buyer, or are looking to move elsewhere. Take your pick, I took mine.[/quote]

Regardless of the figure, the point is well taken. I too am a renter (saving money) and possibly looking to move elsewhere unless buy prices come back into line with fundamentals, say a 30% drop, within the next two years.

It's a wide world out there and it's getting bigger for those who speak the language.

[josephhawkinson]

Originally Posted by Tampa Red

Why be sheep? Think for yourselves.

Prices will never go back to 3 years ago. Interest rates could easily double, remember Carter?

If you're waiting for dramatic decreases that might be the reason.

Why not look around and make some low ball offers? Somebody might bite in a buyers market.

The ones who waited til they were absolutely sure prices were going up are the ones who bought at the top of the market.

If the interest rates double it will be worse for sellers, there will be fewer buyers and then prices will have to come down even more. Do you think the ARM and interest-only mortgage craze will last another decade to keep the inflated real Estate market afloat? Banks are already getting tighter on mortgage qualifications due to massive defaults.

Summary: If interest rates double , house prices will have to adjust (either drop or keep flat for as long as affordability is low). That's what historical data says.

[shannon94]

Originally Posted by SunnyDog

Correction to your correction--Cali's population is growing faster than the birth rate, so yes more are moving in to Cali than out.

Here ya go.....


THE NEWS TRIBUNE
For the first time since 1998, the people who relocated from California to other states outnumbered those who migrated in from other states, according to a report released by the state’s Department of Finance this week.
California, which had a population of more than 37 million in 2005, had a net loss of 28,565 people to other states during the fiscal year that ended July 1, according to report estimates.

Howard Roth, chief economist with the department, said California’s housing costs discourage people from other states from moving here.

There are a ton of articles like this out there. Check it out.