Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Like 8 Snake,
We're also home owners with good credit etc... seeing how parts of the market in So Cal, and NV has been hit really hard in the last year or so, we're actually considering in the next year or so to get an investment property/rental... or maybe investing in REITs? Condo in Las Vegas for the weekends? Sounds kinda nice as a timeshare with other relatives... with hotel rates going up.
I think with all the restrictions and tightening of credit, people with good credit, etc.. is going to do great in this market. Too bad for all those people who walked out or killed their credit ratings... with builders slowing down or stopping building... it'll just restrain the supply. With the 7k credit (in the works) for people buying foreclosed properties, that'll also help out people with good credit and investors. Lastly, as costs go up and margins in the negative, building houses won't be as profitable... so why build? Builders can transition their skills to commercial/industrial/ smaller houses (cheaper), etc...
So maybe now might not be the greatest time to buy... but I see things being great for those that have good credit/financials in the future. Not to be mean average Joe, but you had your turn. May the best investor/buyer win in the next rat race :P.
I consider myself financially responsible. And yet I prefer having the escrow. The interest earned from this small amount of money wouldn't offset the cost of having to deal with paying it every month on my own. For some if their taxes are very very high I could see wanting to manage it on your own.
As for the folks who choose not to escrow and also choose to not put money back every month to cover taxes....(shakes head)....I guess they think money is going to fall out of the sky when it comes time to pay taxes and insurance.
What is your background? You say you don't work in real estate but you seem to know alot about it.
Its great that you have a credit card at 9% lifetime rate but it doesn't matter if your rate is 25% if you pay your balances every month like I do and get 2% cash back. I think my rate is like 10-11% depending on Prime but I don't really care as I have never paid them any interest.
I recommend waiting for those on the fence who can afford to stay put. The credit market has already gotten tight and will only get tighter for those with marginal credit.
For people with good credit though or those that can pay cash I would only buy if you find that dreamhouse you plan on staying in for a decade or more. For investors, the deals are only going to get better as the number of short-sales and foreclosures increase.
When do you see prices bottoming out in Dallas? Nationally?
I do see prices dropping in Dallas in the next 12-24 months, but only a little.
LOL!! My background, kind of like my dad, jack of all trades. As for a "specific" industry I've worked in banking, interior design and for a builder (worst job almost ever - and this was back in the BIG heydays). Our business is one that touches just about every industry/business sector/market out there. Many people don't understand it as they don't realize all of the behind the scenes aspects of it. We deal w/ customers that run the spectrum from construction companies and everything that entails (concrete, plumbing, heating & a/c, elec, etc), manufacturing, medical & health care, emergency response, public utilities, auto industry, restaurants/bars, artists, farmers, etc. Trust me, it is NOT a "normal" business that can be keyholed.
I keep up w/ the real estate as here our property tax rates are what many consider very high. We can protest our taxable market values every year and one needs current comps to do so. If one is not in the market to sell anytime soon it is in their best interst to go fight to get their value down. I'd almost say that I'm on a first name basis w/ some of the property appraisers at the county as I not only protest our personal properties but our commercial properties.
Commercial is a WHOLE NOTHER BREED . We are also in the market (again and I guess it is a sign of a good market) to expand. Commercial propety is SKY HIGH right now around Dallas and the sellers are getting their asking price IF you can find something for sale that fits you. With the job market here being VERY healthy it helps on the business end but hurts when your trying to find more land/buildings to expand. We have two deals right now that after todays paperwork signing we can start on one (yippie - I don't like building, can ya tell) and still going thru the city on the other. When we were signing today the officer said that commercial closings are what is REALLY driving this market right now. I don't know whether to be sad or happy as we did lose one deal or else we would have three projects going on. Wish we had that property but it sold before anyone even listed it. Gotta let people know round here if your interested in their land/building IF they ever decide to sell.
Credit cards - CAN NOT STAND HAVING A BALANCE! YIKES! When I hear people say things about they have x amount in credit card debt I about pass out. Then they go on to say stuff about the interest rates and I'm VERY thankful we have that one that is so low and always will be. Can't keep that if you don't pay it off or at least on time. I SOOOO agree with you concerning credit card debt. As soon as that baby comes in it gets paid.
Have to agree with you that it is going to be those that have the money and credit that will make it thru this one and come out ahead. Even if they do buy and need to sell in a few years. Depending of course on WHAT and WHERE they buy . There are some areas around Dallas I would not touch for anything. I don't care how low the prices go. What is strange is these are the very areas that people relocating here flock to WHY? Why on earth would you flock to an area that is seeing an over abundance of homes being built that can not sell, foreclosures due to crappy building issues or they got transfered AGAIN and could not sell in a flooded market. I just do not understand their logic. You travel to the more "desireable" areas for those of us that KNOW this market a little more and you don't see foreclosures, you see rising prices, you see homes FLY off the market the minute they list, etc. Blows my mind.
Yet in the end when all is said and done and the dust has settled it will be those that have sat on the sides waiting that were in a position to buy who will be upset they "missed out". In business sometimes you have to put your neck out there to get ahead. You have to watch the "market" and how it is changing. You plan accordingly and pray for the best and follow your gut. If it doesn't feel right then you don't do it. However if nothing was holding you back but some fears that the market "might crash even further" and you have everything in place to keep you afloat IF it does........ and it doesn't go as low as you thought. No one to blame but yourself. Meanwhile those that were willing to take the chance and went out and bought property and held onto it are the ones your going to be mad at for "getting rich".
---------------
Sorry for the caps everyone. I am not screaming on those words but rather emphasing that word as if I were in a conversation w/ you and my tone changed to do so. It is hard to express oneself thru the internet on such issues when you don't have the benefit of facial expressions or change in tone of voice to convey.
I agree 100%. I could rattle off several names right off the bat that I KNOW need escrow accounts. But for the rest of us that DO plan accordingly and do know how to budget and don't want someone else controlling our money, no.
I can't see one reason why anyone would buy a home for cash today when that same house could be 50-80% off in just a few short years. Absolutely no reason whatsoever.
I'm going to go out on a limb and say there'll be much much fewer transactions as families stay together and people swallow their pride and stay rooted where they're at. This is actually a blessing in a way, since fewer marriages will end in divorce (the throw away modern American society will end abruptly just like the transition between the 20's and 30's), families will stay rooted and together and tough out the bad times, and communities might be better established since people will be compelled to remain where they're at due to a massive loss of equity.
I disagree with both comments. I think your numbers have no basis. Houses won't decrease in value by 80%. It's virtually impossible.
I also don't think that families will "tough it out". If they couldn't do it better times they certainly won't do it worse times.
I disagree with both comments. I think your numbers have no basis. Houses won't decrease in value by 80%. It's virtually impossible.
I also don't think that families will "tough it out". If they couldn't do it better times they certainly won't do it worse times.
How is 80% off "virtually impossible"? If cash is king and no homebuyers have any real equity anymore, Fannie/Freddie are out of business (totally within the realm of possibility), how will people get mortgages? I'll tell you where, from Joe Bob down the street who coaches little league, like the way it used to be. The fad of mortgage securitization may struggle horribly during it's timely demise, but an end of it would mean the end of the concept of home appreciation. You work for your home. Your home doesn't work for you.
Incidentally, starvation is an excellent motivator to keep families together. Maslow's hierarchy of needs and all...worked very well in the 30's.
Well, for all of you sitting on the sidelines waiting "for prices to drop" yuo might not get such a swell deal after all. With all of the changes going on in the mortgage industry they are tightening the ropes A LOT!!!!!!! I don't know everything going on but have been finding out bits and pieces. Personally, for us we would NOT like the new requirements they are putting on home loans.
Starting June 1st EVERYONE must have an escrow account. For those of us that CAN manage our own funds, save for our property taxes and insurance...... those are the ones going to pay for those that can't. Why would I want to pay into an escrow account all year long and let THEM get the interest off of it. NO THANKS! I'd rather save all of the funds myself in a savings account and let ME earn the interest. Might not matter for those w/ low property taxes and insurance but for those that do pay a large sum in property taxes it DOES add up over time.
One year of Home Owners Insurance must be paid at closing. This will hurt those that pay monthly and again CAN budget for such. Many insurance companies give their clients a discount for paying by automatic withdrawal on a monthly account. There goes THAT savings.
If your FICO score is below 720 now you have a whole % added to the interest rate you could get. For those that have a great credit score they can take advantage of some great lower rates. For those w/ avg credit your going to have to pay more just because. So much for some people being able to save and get ahead.
These are just a few of the new "requirements" being put into place for home mortgages. If your looking to buy and prefer NOT to have an escrow account then you better hurry up. Who knows what else they are going to do to try and "clean up" the mess created by a few. As always it is those that are NOT causing the problems that will have to pay for it.
Oh My God !!!! What are they going to ask for next... a downpayment?
Sounds to me like we're on the way back to sane lending standards. As a qualified buyer, I don't mind not having to compete with the landscaper and his stated income (liar?) loan.
As for the credit cards we only have 1 that we use for personal purchases and it is set for LIFE at 9% and we have had that one card for over 10 years.
Oh yes, it is "set for life"... Right up to the day the CC company decides to raise your rates. Have you ever read your contract? A CC company contract is the worst of any kind. They essentially, "reserve the right" to "modify the terms at any time". Hell, most even state that they can demand payment in full at any time, for any reason. I'm not saying it happens often, I'm just saying that legally they can do whatever they want if you have a balance with them.
[quote=Brandon Hoffman;3420546]I disagree with both comments. I think your numbers have no basis. Houses won't decrease in value by 80%. It's virtually impossible.
I disagree also. In the 80's when this happened, houses did not decrease in value by 80%. I'm not sure of your process for providing information.
I disagree also. In the 80's when this happened, houses did not decrease in value by 80%. I'm not sure of your process for providing information.
The only information I have is to reference the Great Depression. Many of the draconian socialist measures being implemented now by the Fed and the government are reflective of what the New Deal tried to do in the 30s. Regretably, like the New Deal, it will only make matters worse. But it will assure an election win to whomever dresses up as Santa Claus best.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
. We are also in the market (again and I guess it is a sign of a good market) to expand. Commercial propety is SKY HIGH right now around Dallas and the sellers are getting their asking price IF you can find something for sale that fits you. With the job market here being VERY healthy it helps on the business end but hurts when your trying to find more land/buildings to expand. We have two deals right now that after todays paperwork signing we can start on one (yippie 
. There are some areas around Dallas I would not touch for anything. I don't care how low the prices go. What is strange is these are the very areas that people relocating here flock to 
WHY? Why on earth would you flock to an area that is seeing an over abundance of homes being built that can not sell, foreclosures due to crappy building issues or they got transfered AGAIN and could not sell in a flooded market. I just do not understand their logic. You travel to the more "desireable" areas for those of us that KNOW this market a little more and you don't see foreclosures, you see rising prices, you see homes FLY off the market the minute they list, etc. Blows my mind. 
