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I have personal knowledge, they have been saying this for 2 yrs! Curious, do you rent?
Sure, I rent. It beats stressing over payment in Orange County. Prices here are insane. We could afford the mortgage, but that wouldn't leave much for a life outside of that. This way we get to actually enjoy our lives plus sock away the money for down payment on next home. Besides that, we also have other investments and 401k, etc.
They may have been saying it for two years, but you know "they" are right ...
Not in all areas is the price to rent (throw your money away) cheaper than buying. Actually, it is a buyers market. NOT a sellers market. The time to buy is actually now. Cheap deals are out there as sellers want and need to sell and there is TOO many homes to choose from making it a buyers market. When there are more homes than qualified buyers, that makes it a buyers market.
What concerns me is that I live in the Phoenix area and see what has happened to market in a very short period of time. I have thought of those people that bought last year at what I consider highly inflated prices. I don't think they could sell for the same price that they bought at right now.
Will that also happen in NC? Looking for advice, not giving it. Thanks!
Sure, I rent. It beats stressing over payment in Orange County. Prices here are insane. We could afford the mortgage, but that wouldn't leave much for a life outside of that. This way we get to actually enjoy our lives plus sock away the money for down payment on next home. Besides that, we also have other investments and 401k, etc.
They may have been saying it for two years, but you know "they" are right ...
What will you do when your 65? Rent? How will you afford it? Social Security? Now that's a joke. Define stock your money? I am really not trying to sound like a jerk. Just confused on how someone would choose not to buy, but rather rent for your reason. There has to be other reasons. Such as FICO scores or what not. We can all say we have 800 FICO and make $400k a yr know one online would ever know. But, be honest. Your here on a forum were most are wanting to buy, and your renting in OC. I am assume in 1960's apartment paying $1700 a month. Which is my house payment! I just don't see the logic in it. I hope your not ones of those who say they are just happy where they are in a small 800sq ft apartment and are in love. When I was young, yes, we also said that. But, then I grew up and said I want to own and not have a payment when I am 65yr!
Last edited by TornadoAlley; 07-17-2006 at 09:27 PM..
That's what diversified investment strategy is for.
Quote:
Originally Posted by TornadoAlley
and your renting in OC. I am assume in 1960's apartment paying $1700 a month. Which is my house payment! I just don't see the logic in it.
My FICO is above 700. My rent is $1800 for a condo rented by Irvine Company. Built in 2000. Has pool and exercise facilities. It's quite nice, actually.
Don't get me wrong. I'm looking to move to NC. But, even when we move, I still won't buy (build, actually) yet. Not at the current prices. My reasons are many, but one of which has been echoed above by tismekll: you buy now, you will be underwater soon. I have no reason to buy now (even at lower interest rate) to be underwater in the future.
That's what diversified investment strategy is for.
My FICO is above 700. My rent is $1800 for a condo rented by Irvine Company. Built in 2000. Has pool and exercise facilities. It's quite nice, actually.
Don't get me wrong. I'm looking to move to NC. But, even when we move, I still won't buy (build, actually) yet. Not at the current prices. My reasons are many, but one of which has been echoed above by tismekll: you buy now, you will be underwater soon. I have no reason to buy now (even at lower interest rate) to be under water in the future.
Again, don't get me wrong I am not trying to be rude and if I sound that way I am sorry. How would you be underwater? Your actually paying more for rent than my mortgage payment! My payment stays the same for 30yrs! Your rent will go up and then you will be under water.
Location: Charlotte,NC, US, North America, Earth, Alpha Quadrant,Milky Way Galaxy
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Quote:
Originally Posted by tismekll
What concerns me is that I live in the Phoenix area and see what has happened to market in a very short period of time. I have thought of those people that bought last year at what I consider highly inflated prices. I don't think they could sell for the same price that they bought at right now.
Will that also happen in NC? Looking for advice, not giving it. Thanks!
Phoenix RE was *torched* by speculators who bough 2,3,4 properties. Now they're arms adjusted and the rents can't keep up, so now they are now squeezed, having to dump the houses for less than what they paid. They messed it up for the folks that have bought over the last few years. That's only a problem if you plan to sell this year. You'll loose money. If you buy a house and plan to be there 10 years, you will be fine. RE goes up over a period of time.
As for NC? It's fine. Your housing cost went up $2K in a month (or was it a week). It'll probably keep going up. It's summer, it's still a good RE market. Why? Because speculators haven't come in and grossly driven up the prices. I would say if your $200K property went to $220K in a month, *then* you have a problem. A 30 fixed is still less than 7% so you are still good.
NC isn't going to go down, because it's good moderate (3%-5%) appreciation.
There's no general rule if it's better to buy or rent, buy now or wait. It depends on your needs, your lifestyle, your age, location, and many other factors.
Just saying that what someone pays as rent is the same or less than a mortgage is not a valid argument. Homeowners have a lot more expenses than just the mortgage. Taxes, Insurance, HOA or condo fees, Maintenance, Maintenance and Maintenance. And etc. When you rent you don't have to pay any of that.
There are also some other factors that may apply for certain markets. For example, in California most homeowners don't have earthquake insurance because it's expensive. And it covers only up to a certain amount. So if the quake comes all their equity will be gone in a matter of minutes. If you rent (and survive ) you'll still have your money in the bank.
Some people (like me) can't even think about the possibility of renting long term. Owning a home is costly but it's your home. Redecorating, remodeling, putting additions, not having anyone above or below, all this can be priceless for some.
What I don't understand is people who keep "waiting to buy" biting their nails in expectation for the bubble to burst. Sure, there have been market adjustments in a few markets, but I've been hearing about a bubble burst for 10 years. So if you're (very) patient, go ahead and wait. But it might be a while...
Last edited by Grass Is Greener; 07-17-2006 at 09:48 PM..
Location: Charlotte,NC, US, North America, Earth, Alpha Quadrant,Milky Way Galaxy
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Ask and ye shall received....geesh T.S. your fast dude!
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) you'll still have your money in the bank.
