Don't Buy!!! (investments, prices, renting, more expensive)
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When someone posts something like TexianPatriot did, I always wonder what his or her agenda is? Why add to the simmering pot with a load of doom and gloom prophecy. What does he or she have to gain from this? There are areas near me that are doing just fine in sales, other areas that are not. People who want to buy homes will buy homes. It's dooms-day prophets like the OP that causes much of the trouble in the first place.
Nothing to gain. Just trying to help some home owners that are being swindled by fat cat real estate agents. Not that all of you guys are bad. Heck, my mother is an agent herself.
There are no exotic loans anymore and credit is as tight as a snare drum. How can we be anywhere near a bottom?
The market is varied. The best way to make a decision about whether or not to buy is to get information on the specific area you're thinking of buying in, not to make a blanket judgment of the entire country (or even an entire state or city). It's not helpful to say "DON'T BUY" in relation to the market as a whole when that might be completely wrong advice for the next town over, or even the next neighborhood over.
Nothing to gain. Just trying to help some home owners that are being swindled by fat cat real estate agents. Not that all of you guys are bad. Heck, my mother is an agent herself.
There are no exotic loans anymore and credit is as tight as a snare drum. How can we be anywhere near a bottom?
How is a RE agent swindling? I mean, typically the people looking to buy or sell go to THEM after they have already made a decision about buying or selling. Also, not everyone looks at the purchase of a house as an investment. Many look at it as a HOME, as I do. We bought in January and yes, our home has declined in value (actually it hasn't as we don't need or plan on selling...only when we make that decision will we see what our home is finanically valued at)...we don't look at the numbers, we look at the value we are getting in terms of owning, having our own yard, having a place to live in and make memories in...SOme people value that over financials. Know what I am saying? (I have kids pulling me at the moment so am not writing as clearly as I would like)
Nothing to gain. Just trying to help some home owners that are being swindled by fat cat real estate agents. Not that all of you guys are bad. Heck, my mother is an agent herself.
There are no exotic loans anymore and credit is as tight as a snare drum. How can we be anywhere near a bottom?
What I'm seeing more of lately are the loss mitigation and foreclosure prevention specialists...and they're all experts! [sic] They're the fat cats in Florida today. JMHO
Real estate has a long way to correct. Don't jump in now. Rates are only going to increase (which will bring housing prices down much lower). Plus, interest on a mortgage is tax deductable anyway and as you pay more towards interest on a less expensive home, you get a better write off on your taxes. It's going to get much uglier from here.
Will you provide some mathematical calculations to back up your claim as proof? Let's take 2 examples, 1 in a bubble market, 1 in a solid market.
Bubble market home: 400k home that will decline and additional 10% and be worth $360k in 2 years. What is the 2 year mark, the 10 year mark (lets say it's worth $400k again here) and the 20 year mark (let's say $525 here).
Solid market: 200k home, appreciating at 2% per year, 2 years=208, 10 years=$240, 20 years=325k.
Don't forget the escrows and amortization in your calculations. Okay, I'm ready for you to prove your point that you'll save by renting. Let's see some math backing it up!
Investing in anything has ups and downs. People have been pumping money into gold, silver, oil and other commodities for years now.... it will have its bubble burst eventually.
Happened with the internet stocks, real estate, and other things before. Everthing has its cycles, and its only boosted by people jumping in trying to find the next big score. By the time the Average Joe gets into commodities, much like real estate, the big profits are gone and they are buying on SPECULATION.
As this first posted and I read it before anyone joined in my first thoughts were here we go again. Lets start another stale arguement. In my humble opinion the op just wanted to p.o. more people, to try to come across as having a crystal ball or that they know more than the next person. It just amazes me that there is never anything to back up the "theories" or even a clue to what the posters do for a living that may even give them the expertise in the argument. I am a business owner, contractor and work with pros daily so does that make me an expert in the economy of the states????
The guy/gal was trying to stir the pot a bit. But even I, a 'doomer' as you may call us, will say and have said over and over and over again, I am not an expert in your area as I only know my area. So yes I do believe all RE is local BUT that does not mean the rest of the nation is not impacted from the housing bust. Maybe not in terms of sharp declines but in terms of longer DOM etc.
What's funny is how some of you cheerleader guys get all bent out of shape and even challenge the OP when it's clear he is trolling.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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If you want you can go here: Gold Price and vote on the poll that asks if gold is overpriced at $1000/ounce. It's up today $23 to $836. It must have been a bubble or something.
Real estate has a long way to correct. Don't jump in now. Rates are only going to increase (which will bring housing prices down much lower). Plus, interest on a mortgage is tax deductable anyway and as you pay more towards interest on a less expensive home, you get a better write off on your taxes. It's going to get much uglier from here.
People will be more inclined to take your advice if it is backed up with facts.
Here are a few facts.
Mortgage rates are down 8 basis points over the last week and mortgage rates are down from 6.77% to 6.66% over the last month.
Some areas have seen stable prices for the last 10 months.
Some areas have seen inventories go down 16% since the beginning of the year.
Seems your statement may be wrong for same areas.
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