[preferentialtreatment]

Question is, for how long can people stay in one place when they have no income coming.Do they still rent and look at the silly sky?Finally,there was and is money to be made but you have to have money to make money and it`s not that easy.Remember a lot of people jumped into the real estate because they didnt have jobs or creativity.This was almost 7 years ago.God bless our history.

[wagonman76]

Originally Posted by Sparrow_temp

It's probably the perfect time to buy a house if you had guaranteed job security. Eventually property values will go up if the economy gets better. If the economy doesn't get better and inflation/hyperinflation happens -- you're still in great shape because property values will also go up. The problem is a state like MI where there's high unemployment. You could easily find yourself looking for a job and having to move to find work. A house will limit your options to the local area and could just as easily be the biggest liability you have in such a situation.

Couldn't agree more.

[JimmyInGreatLakes]

Buffet has a point. We always think the doom and gloom we are currently in will last and we won’t recover. Yes, things aren’t great right now and maybe worse than most previous cases but history shows we come back time and time again and those brave souls that swim against the tide come out smelling like a rose. I’m not one of those brave souls but I applaud those that take the risks and don’t begrudge them a dime of what they earn if/when there’s a recovery.

[magellan]

Originally Posted by preferentialtreatment

Question is, for how long can people stay in one place when they have no income coming.Do they still rent and look at the silly sky?Finally,there was and is money to be made but you have to have money to make money and it`s not that easy.Remember a lot of people jumped into the real estate because they didnt have jobs or creativity.This was almost 7 years ago.God bless our history.

You don't have to "have money to make money." That whole mantra doesn't even make sense. You have to have a good plan and be able to sell it to people who have money.

[electric_lady]

So back to this recurring Warren Buffett quote:
"Be nervous when everyone is buying, and buy when everyone is nervous."

I know a lot of people buying in Michigan RIGHT NOW. So, should I be nervous?

FYI, I'm referring to first-time home buyers, paying less than $70K for a home in suburban Detroit.

[magellan]

Originally Posted by electric_lady

So back to this recurring Warren Buffett quote:
"Be nervous when everyone is buying, and buy when everyone is nervous."

I know a lot of people buying in Michigan RIGHT NOW. So, should I be nervous?

FYI, I'm referring to first-time home buyers, paying less than $70K for a home in suburban Detroit.

The key word is "everyone." The number of homes being bought by first-time homebuyers right now is still far far below the volume of homes that were being bought/sold back in 2003 - 2006.

[tryin2buy]

Well....I'm trying to buy (hence the user name). I'm not a first time buyer and therefore don't qualify for the $8,000 credit but I am helping to "fund" the program (or my kid will be, I'm not sure yet!)

My biggest problem is that so many people owe so much more than their house is worth (upside down) or are still hanging on to an unrealistic price from 2005/06 and "don't have to sell". I sold my house about a year ago and took the hit but some sellers believe they are somehow different and their house is special. Yeah...mine was special too but I needed to sell it so did what I had to do. Nobody is going to overpay in this market, they will just move on to the next one. I'm more than willing to pay a fair price but will not overpay. Nobody overpaid me.

Most foreclosures I've seen require too much work so I'm just waiting for the right one to come along. Time is apparently on my side which is really not a good thing for any of us in Michigan.