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I bought my home in 1988. I can tell you the exact day that the real estate market peaked in the late 80's because it was the day that I closed on my house! Anyway, in the early nineties the real estate market tanked (much like the last 2 years) and I definately could not have sold it to cover my mortgage. Did I look at this as "losing" money? No, because it was my home and I could afford it. Today, it is worth about three times what I bought it for. In the greater scheme of things, I am still way ahead.
So maybe we can all come to an agreement here: If you know that you will be living in this place for twenty something years, hopefully retire in it, go ahead and buy it regardless of the market.
If you are more like a regular Joe and don't know exactly where you will be twenty years from now, it may be a better idea to consider the market conditions.
So maybe we can all come to an agreement here: If you know that you will be living in this place for twenty something years, hopefully retire in it, go ahead and buy it regardless of the market.
I completely agree.
Although I will add the caveat that I thought the same thing ("this is absolutely my fourth and LAST house!") when I bought my last house (when I was in my mid-50s) but that was before I met my SO who had also bought his supposedly "last" house.
A year ago we both sold our houses and are now looking to buy one together. So you never know.
And of course we are both absolutely positively sure that this will be the "last house" for both of us (or as I semi-jokingly put it, "for whichever is the last one standing"!) ;-)
So maybe we can all come to an agreement here: If you know that you will be living in this place for twenty something years, hopefully retire in it, go ahead and buy it regardless of the market.
If you are more like a regular Joe and don't know exactly where you will be twenty years from now, it may be a better idea to consider the market conditions.
Agreed?
Bingo - just because you think you will be in a hosue for 20 years doesn't mean you should ignore market conditions and buy at historical highs because you can afford it. Yet, each and every real estate agent will tell you that.
When the housing market is in an obvious bubble as it was in 2006, it's not a good time to buy. In reality, I agree that a house purchase should be one made with the intent of staying put and not making a quick buck. However purchasing at all time highs is not a wise decision no matter the circumstances. Being upside down on a mortgage is a terrible way to live, because even if you have the intention of staying, you never know what life could bring. Why put yourself in a bad position because everything will even out in 20 years? Yet you will never hear a RE agent say this.
You should talk to my dad. He bought his first house in 1974 and watched it lose 20 % value a year later. At 14% interest of course. Stayed like this for over 15 years. Oddly enough, my Dad never felt "Upside down" on his mortgage. I don't think anyone did.
As for RE agents, there is evidence that now is indeed a good time to buy a house! Prices have dropped and interest rates are low. Plus, first timers get 8K if they do buy now. So are the RE agents wrong for saying it's a good time to buy? Don't get me wrong; My opinion of RE agents is not exactly positive but you seem to be letting your opinion stand in the way of objectivety.
You should talk to my dad. He bought his first house in 1974 and watched it lose 20 % value a year later. At 14% interest of course. Stayed like this for over 15 years. Oddly enough, my Dad never felt "Upside down" on his mortgage. I don't think anyone did.
As for RE agents, there is evidence that now is indeed a good time to buy a house! Prices have dropped and interest rates are low. Plus, first timers get 8K if they do buy now. So are the RE agents wrong for saying it's a good time to buy? Don't get me wrong; My opinion of RE agents is not exactly positive but you seem to be letting your opinion stand in the way of objectivety.
I am not arguing that there aren't reasons to buy now, my whole argument is that real estate agents always say it's a good time to buy - and use the cop out that "if you plan on staying for 20 years and if you can afford it, etc". I have never (and will never) hear a real estate agent say it's not a good time to buy. I have heard surgeons say that surgery wasn't the best option, and I have heard mechanics say that new brakes aren't necessary, but never a real estate agent say it isn't a good time to buy.
Another poster put it best - market conditions should be a major factor when purchasing a home. Real estate agents would say ignore market conditions so long as you plan on living there for 20 years and you can afford it. That's simply an ignorant way of looking at things.
I am not arguing that there aren't reasons to buy now, my whole argument is that real estate agents always say it's a good time to buy - and use the cop out that "if you plan on staying for 20 years and if you can afford it, etc". I have never (and will never) hear a real estate agent say it's not a good time to buy. I have heard surgeons say that surgery wasn't the best option, and I have heard mechanics say that new brakes aren't necessary, but never a real estate agent say it isn't a good time to buy.
Another poster put it best - market conditions should be a major factor when purchasing a home. Real estate agents would say ignore market conditions so long as you plan on living there for 20 years and you can afford it. That's simply an ignorant way of looking at things.
This is tiresome.......... We get it. You don't like real estate agents. Please bore us by pounding away at a different topic.
As long as everyone knows it's always the right time to buy, right Tom?
Ho, Hum......
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Anyway, in the early nineties the real estate market tanked (much like the last 2 years) and I definately could not have sold it to cover my mortgage. Did I look at this as "losing" money? No, because it was my home and I could afford it. Today, it is worth about three times what I bought it for. In the greater scheme of things, I am still way ahead.
Stayed like this for over 15 years. Oddly enough, my Dad never felt "Upside down" on his mortgage. I don't think anyone did.
