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I am buying a house in Bergen County and offered a lot over asking. HAd to beat out 12 other offers on the house within 3 days of list. The problem now in all these towns, where houses are selling higher than asking, and what they have been going for 1 year ago, is the appraisal. Appraisers are known to be slow to react to current pricing...
how do you know this? I remember hearing this in 1992 when I bought my house with an 8% mortgage.
btw, you're arguing with someone who really doesn't GAS as I'm not buying or selling.
Are you suggesting rates are going to trend below 3%! OMG, if that happens nobody is going to have to worry about buying any houses....the whole economy will have finally unraveled to the point of no return. And I am not arguing with anyone and couldn't GAS what you think is a good buy opportunity or not. I think we are on the same page vis a vis what we think about each other's opinions.
I'm thankful for taxpayers and my mother who paid for my state school college education. I've paid society back a few times over with the $1M in taxes we've paid throughout our working careers!
I am a taxpayer too and have paid multiples of that $1M and have half my life still in front of me. Doing my part to subsidize the system. My parents were too poor to fund my education, but God bless them for giving me good values and a strong work ethic. I am thankful for that mentoring and am proud to have paid my way through school.
it's actually not that commendable in my generation. generation y & millenials are known for paying the credit card balance in full, and being generally adverse to debt.
every generation thinks the next is lazier and more entitled, and every generation thinks it was harder "in my day".
increased college costs are not really solely blamed on pensions and comp packages. if you look at colleges' balance sheets (which i've audited many), their payroll compensation costs have stayed relatively the same as a % of total costs. but the bottom line, states have cut funding to schools, and so has the federal government, and that cost has been passed on to students. yes, salaries and total comp has increased over time, but you'll find that most salaries have barely kept up with inflation.
I disagree... I always thought my grandparents living through the Great Depression had it much harder. I have never been that delusional or so self absorbed to think I've had it harder than them. Pension costs have ballooned expontentially at college and universities.
And the number of kids being sent to school and provided with a student loan has increased substaintially, which has driven up the costs....supply and demand out of whack because of gov't intervention creating an inflated demand.
Are you suggesting rates are going to trend below 3%! OMG, if that happens nobody is going to have to worry about buying any houses....the whole economy will have finally unraveled to the point of no return. And I am not arguing with anyone and couldn't GAS what you think is a good buy opportunity or not. I think we are on the same page vis a vis what we think about each other's opinions.
right now, 30 yr fixed is around 4%. when it was 6%, people were saying "rates have never been this low!". when it was 5%, they said the same thing. then at 4%, the same. i ended up refi into a 3.875%, thinking...how much lower can they go? well, up until about 2 months ago, people were refinancing 30 yr fixed into 3.4ish%.
sure, they won't go much lower...but that's not a reason to "buy now". it's a contributing factor - all tahiti is saying is don't get all caught up in the frenzie.
I am buying a house in Bergen County and offered a lot over asking. HAd to beat out 12 other offers on the house within 3 days of list. The problem now in all these towns, where houses are selling higher than asking, and what they have been going for 1 year ago, is the appraisal. Appraisers are known to be slow to react to current pricing...
Appraisal risk is a problem, but assuming a reasonable LTV ratio is sought by they buyer, the deal should proceed smoothly. When I bought my sister and her kids their condo a few months ago, we had no problems with the appraisal or loan.
I disagree... I always thought my grandparents living through the Great Depression had it much harder. I have never been that delusional or so self absorbed to think I've had it harder than them. Pension costs have ballooned expontentially at college and universities.
And the number of kids being sent to school and provided with a student loan has increased substaintially, which has driven up the costs....supply and demand out of whack because of gov't intervention creating an inflated demand.
sorry, i should clarify. every generation thinks it was harder for them than it is for the next. obviously, no one thinks they had it harder than those who lived through the great depression.
pension costs aren't the half of it. like i said - total compensation, including pensions, has remained pretty much the same in relation to total costs.
yes, the number of kids going to school has increased dramatically. it's because the number of jobs requiring a college degree has increased dramatically. loans increasing? eh...yes and no. students rely on loans more now because tuition falls more on students than it used to (due to decreased state and federal funding, and increased investment in institutions by the universities).
student loans on avg total about $26,000 for a graduate. yet the avg 4 yr institution costs in the order of $80,000-$120,000, or as much as $150,00-$200,000 for some private.
when my uncle graduated college, it was $600/semester. now, it's $900/credit.
right now, 30 yr fixed is around 4%. when it was 6%, people were saying "rates have never been this low!". when it was 5%, they said the same thing. then at 4%, the same. i ended up refi into a 3.875%, thinking...how much lower can they go? well, up until about 2 months ago, people were refinancing 30 yr fixed into 3.4ish%.
sure, they won't go much lower...but that's not a reason to "buy now". it's a contributing factor - all tahiti is saying is don't get all caught up in the frenzie.
The cost of the mortgage over time is a very big consideration. If you're familar with the time value of money and look at the present value difference between paying a bit over list price versus waiting it out for a lower price and paying more in higher rates at that point in time, the cost of waiting it out can be substaintially more than the premium paid over list....so while getting caught up in the frenzie is a bad idea, but at the same time, irrational financial decisions based solely on emotion can be much more costly. Reasoning and logic need to prevail in the end.
sorry, i should clarify. every generation thinks it was harder for them than it is for the next. obviously, no one thinks they had it harder than those who lived through the great depression.
pension costs aren't the half of it. like i said - total compensation, including pensions, has remained pretty much the same in relation to total costs.
yes, the number of kids going to school has increased dramatically. it's because the number of jobs requiring a college degree has increased dramatically. loans increasing? eh...yes and no. students rely on loans more now because tuition falls more on students than it used to (due to decreased state and federal funding, and increased investment in institutions by the universities).
student loans on avg total about $26,000 for a graduate. yet the avg 4 yr institution costs in the order of $80,000-$120,000, or as much as $150,00-$200,000 for some private.
when my uncle graduated college, it was $600/semester. now, it's $900/credit.
I had an Indian roomate in college...I remember whining to him one day how hard school was...he had a great line for me, "life is hard, buddy." He was right.
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