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Would you....
Buy a house this summer (by the skin of your teeth) and grab these excellent interest rates ....
OR
save for a year, buy a house next spring with a nicer financial cushion, but risk a higher interest rate?
I am assuming the cost of housing will be the same next spring but I am concerned that interest rates might be back up to 6%. WHat would you do?
As for the tax incentives, they do not apply for us since we make over 150,000 (which I believe is the cap).
I guess I am afraid of losing out on this "good time to buy"...
Ever hear the saying "Hope for the best, plan for the worst?" Without a cushion, you're only solving half that equation.
I don't think rates go up that much by next year, but do nk prices will decline more r worse case stay flat. IMO, save your money and buy next year when the economy is more stable and you have some money in case the 'what if' turns into 'what now?'.
It's a good time to buy if it is a good time for you. Treat your home like a home and not a short term investment and you will do just fine. If you are planning to stay in a home for at least ten years and you can afford the payment, you have nothing to worry about. Those who try to time any market (be it the stock market, the real estate market, or any other market) with the intention of buying at the absolute bottom or selling at the absolute peak inevitably get burned.
Tell that to people who bought in 06/07 ... higher rates, higher prices, they would have been much better off if they had timed it and bought now, but of course hindsight is always 20/20.
I think the dont time it buy when you are ready thing is a bit misleading. No one wakes up one morning and says, hmm I have an extra 100k in the bank, I think I am ready to buy stock and then bam just buys a stock without doing some research and at least making a decision that things will go up and not down, why buy otherwise.
I think the question is do you "need" a house. If you have two kids and are growing out of an apt or if you simply feel your quality of life is being greatly diminished by your apt or if you simply really really want to buy a house then sure, in the long run you will be fine, but who knows, you might do better waiting.
Everyone times the market whether they make a conscious decision to or not. When someone is ready to buy a house and does it, they are are choosing that as the proper time to buy and are in essence making a gamble on it one way or another. Everyone has somewhat of a speculation of what the think will happen in the future, I don't see why someone who thinks prices will drop more would buy now when you can simply wait and see. Like I said you gamble either way.
Look at it this way, say you were ready to buy in 06/07 but put it off .. today you are in much better shape to buy then back then. If you wait even more, the worst that could happen is prices creep back to 06/07 levels which you thought you were going to have to pay anyhow and now you have a much bigger down payment.
It's a good time to buy if it is a good time for you. Treat your home like a home and not a short term investment and you will do just fine. If you are planning to stay in a home for at least ten years and you can afford the payment, you have nothing to worry about. Those who try to time any market (be it the stock market, the real estate market, or any other market) with the intention of buying at the absolute bottom or selling at the absolute peak inevitably get burned.
I'll have to agree with the poster above me. The "it's a good time to buy when it's a good time for you" line is old, tired and a load of garbage. It wasn't a good time for anyone to buy in 2006. Renting for 2 years and then buying would have saved anyone thousands of dollars. Yes, houses should not be looked at as a short term investment, but the fact is there are times to buy and times to stay away. Real estate agents use the "it's a good time to buy if it's a good time for you" line to get people to buy even when the market simply doesn't call for it. It's a cop out and any real estate agent who uses that line to tell people that it's a good market to buy a home even when that is clearly not the case should be ashamed of themselves.
Don't let any fear mongering sway your decision. Sometimes you need your gut to decide if the problem is larger than what can be worked out in your head. Make sure your finances are in in order. Japan has had low interest rates and falling prices for 10 years. Prices will remain low for years, and if the federal government has their way, so will interest rates. There's no reason to rush unless you just happen to need a place to live now and you think you've found the right place, and you can afford it.
I'll have to agree with the poster above me. The "it's a good time to buy when it's a good time for you" line is old, tired and a load of garbage. It wasn't a good time for anyone to buy in 2006. Renting for 2 years and then buying would have saved anyone thousands of dollars. Yes, houses should not be looked at as a short term investment, but the fact is there are times to buy and times to stay away. Real estate agents use the "it's a good time to buy if it's a good time for you" line to get people to buy even when the market simply doesn't call for it. It's a cop out and any real estate agent who uses that line to tell people that it's a good market to buy a home even when that is clearly not the case should be ashamed of themselves.
What you are choosing to ignore is my caveat that you should be planning to live in the home for at least ten years and be able to afford the payment. So, I stand by my "load of garbage" as you put it, and, I am not "ashamed of myself".
I think the dont time it buy when you are ready thing is a bit misleading. No one wakes up one morning and says, hmm I have an extra 100k in the bank, I think I am ready to buy stock and then bam just buys a stock without doing some research and at least making a decision that things will go up and not down, why buy otherwise.
Buying a home is different from buying a stock. You can't live in a stock. The only real similarity between the two is that those who try to time either market usually get burned.
What you are choosing to ignore is my caveat that you should be planning to live in the home for at least ten years and be able to afford the payment. So, I stand by my "load of garbage" as you put it, and, I am not "ashamed of myself".
Even if someone who bought a house in 2006 planned on living in it for 10 years, they still made a mistake by not waiting. You are right in that you can't time the market, but how many real estate agents have ever said "now is not a good time to buy"? The fact is you are in the business of selling houses and you have a conflict of interest. You can post that you are above other real estate agents, but by simply using the phrase "stay in your home for 10 years and buy when it's right for you and you'll be fine" is still a cop out because it's creating a scenario in which you can never lose. It's sitting on the fence so that you can tell people you are an ethical real estate agent why still caveating that now may be the time to buy. Shameful indeed.
Even if someone who bought a house in 2006 planned on living in it for 10 years, they still made a mistake by not waiting. You are right in that you can't time the market, but how many real estate agents have ever said "now is not a good time to buy"? The fact is you are in the business of selling houses and you have a conflict of interest. You can post that you are above other real estate agents, but by simply using the phrase "stay in your home for 10 years and buy when it's right for you and you'll be fine" is still a cop out because it's creating a scenario in which you can never lose. It's sitting on the fence so that you can tell people you are an ethical real estate agent why still caveating that now may be the time to buy. Shameful indeed.
Why did they buy that home in 2006? It was because they could not predict the future. Neither can I. Neither can you. Now, if they bought the home and they could not afford it and were not planning on staying in it at least ten years, yes, they are in trouble today. However, if they can afford it and they are in it for the long term, the ultimate difference in equity (given long term appreciation) will be negligable. Plus, they will have lived in a home that they love.
Your argument is akin to "don't bet on a horse that will not win".
I still maintain that buying a home is a personal lifestyle decision first. You should not buy a home if you are not planning to live in it for a long time. Over the long term, owning always beats renting. One of my landlord clients has a tenant who has been in the same house for almost 20 years. He loves to say "She bought this house for me."
By the way, although you obiviously feel strongly about your position, your inuendos and personal attacks are becoming annoying. Please learn some etiquette.
Your argument is akin to "don't bet on a horse that will not win".
No it isn't. I'm just saying that there are times buying doesn't make sense (even if you plan on staying for 10 years and you need a house)... something that no real estate agent will ever say,
Quote:
Originally Posted by TomMoser
I still maintain that buying a home is a personal lifestyle decision first. You should not buy a home if you are not planning to live in it for a long time. Over the long term, owning always beats renting. One of my landlord clients has a tenant who has been in the same house for almost 20 years. He loves to say "She bought this house for me."
By the way, although you obiviously feel strongly about your position, your inuendos and personal attacks are becoming annoying. Please learn some etiquette.
I agree that buying a home is a personal lifestyle decision first - that doesn't mean finances and home prices and interest rates should be ignored. There are times buying a house doesn't make sense even if the person plans on staying in it for 10 years and need a house - that's all I'm saying.
And I'm not attacking you personally, just making clear your profession has a vested interest and that qualifying your statement is a cop out. It's nothing personal, it's just a weak statement and people should know it - no need to get to defensive
No it isn't. I'm just saying that there are times buying doesn't make sense (even if you plan on staying for 10 years and you need a house)... something that no real estate agent will ever say,
Please give an example.
Quote:
Originally Posted by nyugrad11
And I'm not attacking you personally, just making clear your profession has a vested interest and that qualifying your statement is a cop out. It's nothing personal, it's just a weak statement and people should know it - no need to get to defensive
Please note that I identify myself as a real estate professional on this board, and I also use my real name. Both things that most people do not do. This board is rife with people with hidden agendas. I have none. I have done nothing but provide unbiased advice here for the better part of two years.
I am guessing from your screen name that you are going to graduate NYU in 2011. That would make you about 20 years old. It would follow that you feel you will be in the housing market a few years down the line. If that is the case, you may have a vested interest of your own in this discussion. Just an observation.
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