Price of new homes going up! (Charlotte, Gastonia: rental, crime, buying a home)
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Why not? At 65 "IF" Social Security is still around and your rent is $3,000 a month and you get $2,000 a month (If you worked) how to get that to work? If you had payed your house off, you would have........$2,000 in your pocket each month and is my goal! I got wife's S.S print out and it said full retirement is 72! She gets $2200 a month I think or 62 for $1200. That will not cover our house payment NOR rent payment. Time to buy and get house paid off before then and buy property now and sell it at 55yr and relax on the beach, while those renters are figuring out how to stretch $1200 a month to cover a $3,000 rent payment. Make sense?
I am in agreement with buying versus renting....not sure if that came across in my last post.
Also to add, for those trying to keep their homes, they use their cash from salary to pay their mortgages and credit cards for everything else, consumer debt is also on the rise..
Exactly!!! And what do you think is going to happen when people can't use their homes for an ATM anymore? OH, it's going to be ugly!!
Well let's not confuse "bubble burst" with "market corrections". As I said, there are markets where homes are extremely overvalued, and the price will come down to more reasonable levels. But I don't think it's going to be this apocalypse that you predicted. California might have the biggest drop, since the homes there are ridiculously overpriced.
And also I didn't say that the "bubble" won't burst just because it hasn't in the past few years. My crystal ball is out for repair But in any case, as I said, if you want to wait, go for it. I personally don't see my house as a stock ticket. It's a place where I enjoy living. But everyone is different..
Let's just say it's going to be a large "correction"!! I don't see the home I bought as a stock ticket either.....homes are to be just that .....a home.....not an ATM. It has only been the last 5 years or so that people have been flipping or taking lots of equity out to finance their lifestyles. I think people should definately wait to buy in California, Florida, Arizona etc. I don't think there is a National bubble at all.
Let's just say it's going to be a large "correction"!! I don't see the home I bought as a stock ticket either.....homes are to be just that .....a home.....not an ATM. It has only been the last 5 years or so that people have been flipping or taking lots of equity out to finance their lifestyles. I think people should definately wait to buy in California, Florida, Arizona etc. I don't think there is a National bubble at all.
It is some what stock. I bought 10 months ago for $250k (new home) that is now worth $360k. Not bad!
I think people should definately wait to buy in California, Florida, Arizona etc.
Geez, don't say that!!! I'm trying to sell in Fresno, CA to get to NC. I need that buyer! LOL
In the past 5 years, Fresno was in the top 5 cities for the hottest markets in the country. The entire state of Cal was moving here because it's cheaper and we have a few top-rated school systems. It was crazy!!!
Here's what's interesting: 20% drop in Fresno's RE market. But an 8% increase in prices from last spring. Why?? Some feeling that the "bubble" is a media creation and that we are only in a market correction. Also, sellers aren't going to drop their prices that much. Sure, they'll reduce prices, but not enough to lose money. The result seems to be a standoff - buyers waiting for prices to drop, sellers holding out. I think sellers will have to deal with a reality check, but buyers will soon realize that it won't ever be 1998 again -that $900K house is not going to be reduced to $650K. Maybe $825K, but not $650K. Sure, there are foreclosures. But most sellers will stay if need be rather than give their house away. We've already started to see sellers taking their homes off the market here - won't reduce their prices anymore and will try again in a few years.
Our agent thinks that fall will be a little busier, as buyers who have waited out the season will buy and sellers will want to finalize this process. Also, making sellers wait until next spring will likely result in sellers taking their homes off the market in winter, and then putting them back on in spring at higher prices.
Now is the wrong time to buy (any time that it costs more to own a house vs to rent similar property is a wrong time to buy).
If it costs more to own than rent, isn't that because the person lacks sufficient funds/ income for the down payment?? If so, perhaps the better question is whether that person is living in the right city. They might have been priced out of it, even though they have good jobs, which is the upsetting part of it. But given that home ownership is well established as the most important and required investment one can make, a move to a city more affordable may be the solution that some don't want to realize. I think this is particularly true for people living in fancier areas of the country.
Originally Posted by dirtykj
Now is the wrong time to buy (any time that it costs more to own a house vs to rent similar property is a wrong time to buy).
Quote:
Originally Posted by connie
If it costs more to own than rent, isn't that because the person lacks sufficient funds/ income for the down payment?? If so, perhaps the better question is whether that person is living in the right city. They might have been priced out of it, even though they have good jobs, which is the upsetting part of it. But given that home ownership is well established as the most important and required investment one can make, a move to a city more affordable may be the solution that some don't want to realize. I think this is particularly true for people living in fancier areas of the country.
At no time in my life has owning a home cost less than renting. Owning a home has always cost more than renting. I’m not sure where you are living, but if renting cost more than owning then who would ever rent?
Am I not reading this right or did I just cross into an alternate universe?
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But in any case, as I said, if you want to wait, go for it. I personally don't see my house as a stock ticket. It's a place where I enjoy living. But everyone is different..
I don't see the home I bought as a stock ticket either.....homes are to be just that .....a home.....not an ATM. It has only been the last 5 years or so that people have been flipping or taking lots of equity out to finance their lifestyles. I think people should definately wait to buy in California, Florida, Arizona etc. I don't think there is a National bubble at all.
