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Greystone Estates by M/I? A total of 34 homes, none sold yet but people have shown interest in it. They have released sketches of the plans, so you have to use your imagination solely...
I really like the designs, but then the concerns - in this economy, what if the houses don't sell? The swimming pool area is already built and being used, and they will start building the estate homes soon. I know it is a good idea to buy a home at the beginning of a phase, as prices go up your equity goes up, but in this economy??? Get real, right?
Not only NO, but Hell NO!
Too much downside risk. The US economy as a whole, has a 38% chance of national bankruptcy as it is right now. I am predicting a National depreciation of home values at 40% lower then their already 30% downfall now. It happened to Japan, Russia and others. Now it is our turn, due to our own doing.
A home is Southern California that once sold for $700,000 2 years ago is down to $415,000 and will be at $250,000 or lower within 2 years. It might not be that bad here, but home prices WILL decrease over the coming years.
I know the realtors here will scream and yell and 100% of the time they are ever asked........."hell yeah now it a great time to buy." Never heard one state differently, NEVER! The fact is, all the formlation for depreciation is there and growing by the day.
Not only NO, but Hell NO!
Too much downside risk. The US economy as a whole, has a 38% chance of national bankruptcy as it is right now. I am predicting a National depreciation of home values at 40% lower then their already 30% downfall now. It happened to Japan, Russia and others. Now it is our turn, due to our own doing.
A home is Southern California that once sold for $700,000 2 years ago is down to $415,000 and will be at $250,000 or lower within 2 years. It might not be that bad here, but home prices WILL decrease over the coming years.
I know the realtors here will scream and yell and 100% of the time they are ever asked........."hell yeah now it a great time to buy." Never heard one state differently, NEVER! The fact is, all the formlation for depreciation is there and growing by the day.
Just curious about where you get your risk of bankruptcy figure.
My views have changed on this matter considerably over the last year. We're on the sidelines after selling our $500k Cary home last year. My concerns with buying back in (we're now in Richmond VA) are numerous. I do believe that higher future energy costs (partly as a result of Cap and Trade) will make buying larger homes considerably more expensive going forward--although buying an energy efficient home might offset this. I also think that property taxes will be much higher in the future--especially in areas that take and spend stimulus money. Finally, I believe that although federal (and possibly state) income tax hikes are currently affecting only those making over $250k, they will eventually trickle down and affect many more people (because you could take 100% of the income of the top 2% and still not get rid of the debt) so I think our after tax income may be considerably smaller in the future so my budget for housing will need to shrink accordingly. Way too much uncertainty/negative bias to make a $500k purchase at this point for us.
Have to agree, big risk. In this economy you might be better off adding value to a nice existing home on a good size piece of property. Building costs are very low, materials are relatively cheap. The value you add to the home is matched by the acreage. If I was in the market for $500K I'd look for something in $385-$430 on a decent lot (2+ acres) and then build out the kitchen or so into something that I'd like. Less money, more value.
I don't think the OP's question had as much to do with buying a $500K house as it does with buying the first house in a new development that might never be completed.
What do you all think? What are your opinions?[/quote]
No I definitely wouldn't buy an M/I home for 500K. Seems very overpriced to me for any corporate builder, as is often the case for the early stages of a new subdivision (take KBs Wynbrooke for example).
Go with a local custom builder at a different site. My 2008 3200sq ft house in North Raleigh just cost me 420K for example. Bide your time.
I would definitely only buy in an established neighborhood. There is no way to know if M/I might go out of business or if the market wouldn't pick back up and the neighborhood would be incomplete for years longer than you thought. And most builders won't put in the amenities at the beginning. And if they do, your HOA fees will have to be sky high for so few homeowners to pay for them.
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