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Now you could be right, but you won't know if you made the right decision for a couple of years.
I'm willing to take that risk. Obviously I could be wrong but I do think the market is tightening up a little bit for this neighborhood and now is the time to move.
If I'm wrong ... c'est la vie. In two years I would have paid over $40,000 in rent money so ... if the same house is worth $40K less by then I'll break even and still have the same mortgage payment with, at least, a tax break to boot.
I don't, however, think the price would drop much more than that anyway but, of course, only time will tell.
I
If I'm wrong ... c'est la vie. In two years I would have paid over $40,000 in rent money so ... if the same house is worth $40K less by then I'll break even and still have the same mortgage payment with, at least, a tax break to boot.
Are you serious? You won't break even as if you would've purchased for $40k less which if saved over 30 years would amount to around $160,000.
Furthermore, the vast majority of your monthly carrying cost on the home is no different than rent in that you'll never get it back. So suggesting that its a wash because you'll be paying rent of $40,000 over two years makes little sense.
Its funny though, you go from arguing about how much better you are off paying less to making arguments excusing the losses.
Your emotions lead you, the rationalization comes after the fact.
Quote:
Originally Posted by sheri257
I don't, however, think the price would drop much more than that anyway but, of course, only time will tell.
Yeah, you said the same thing last year. You were wrong in every one of your claims about the California market.
But things are even worse now, there is a global recession coming.
Anyhow, you jumped off the cliff. Only time will tell how deep your fall will be. Good luck.
Are you serious? You won't break even as if you would've purchased for $40k less which if saved over 30 years would amount to around $160,000.
Furthermore, the vast majority of your monthly carrying cost on the home is no different than rent in that you'll never get it back. So suggesting that its a wash because you'll be paying rent of $40,000 over two years makes little sense.
Its funny though, you go from arguing about how much better you are off paying less to making arguments excusing the losses.
Your emotions lead you, the rationalization comes after the fact.
Yeah, you said the same thing last year. You were wrong in every one of your claims about the California market.
But things are even worse now, there is a global recession coming.
Anyhow, you jumped off the cliff. Only time will tell how deep your fall will be. Good luck.
Isn't Humanoid funny? He just truly does not get it and obviously did not get past accounting 101. your $40,000 dollar example makes PERFECT sense. And he also NEVER listens to the fact that nearly NO ONE pays for the 30 year loan they take out. The "life" of a 30 yr, fixed loan is usually about 10 years. But anyway, he's not reading this post anymore because he only reads the first couple of lines- at least of mine. Perhaps THIS is why he constantly takes things out of context and twists certain sentences into things not actually said. He is probably a skimmer! It would also explain his over analysis of so much data and the just plain "misunderstanding" of it. And he accuses me of being "dishonest". Brother! Anyway, I still wish you good luck and don't let one, very misinformed person in our great population, make you insecure in your decision. Many, not just me, will tell you you did the right thing- for you!
Are you serious? You won't break even as if you would've purchased for $40k less which if saved over 30 years would amount to around $160,000.
Furthermore, the vast majority of your monthly carrying cost on the home is no different than rent in that you'll never get it back. So suggesting that its a wash because you'll be paying rent of $40,000 over two years makes little sense.
Its funny though, you go from arguing about how much better you are off paying less to making arguments excusing the losses.
I do see your point but a $40K price drop is the worst case scenario. That doesn't mean it's going to happen.
When I looked at buying before ... I would have spent $300K so ... prices have come down from that to about $250K on average. I always thought these homes were going to come down to $250K or so.
The question is whether they'll move down even further than that. They could but everything seems to be moving in this price range ... give or take ... depending on the square footage, property condition, etc.
Sure ... there's a risk of another price drop and I may lose some money but, there's also a risk of prices going up with the inventory tightening up in this neighborhood. Another foreclosure just went under contract this weekend.
Demand is picking up as prices are dropping so ... if I'm going to blow $40K on rent for the next two years anyway that's why I'm willing to take the risk on a house that I at least want to live in.
I won't waste my time reading your ranks anymore. I read the first sentence of each paragraph.
That's too bad, you missed a lot of information that followed those first sentences. No wonder you keep misinterpreting things! You must read all to come to a conclusion, my friend. English 101!
Looking back over the past 14 days (a standard report from my MLS)
The bank/corporation/SS owned properties in my area are selling at about 95% of list.
The resident owner sales are selling about 90% of list.
The ratio of sales between the two classes is about 70%/30% while the on-the-market ratio is 90% resident owned.
Over a given period there are more new listing than pending sales, while withdrawn, expired listings and pending sales are balancing the total number of properties on the market.
What this tells me; we are still in a buyers market. Banks price aggressively in order to get quick sales. The list to sales price ratio on bank owns is what I'd expect in a normal market. Until the resident owner prices their property competitive to the bank owned properties they are not really on the market.
I think the banks are discovering the market price of property.
I do see your point but a $40K price drop is the worst case scenario. That doesn't mean it's going to happen.
This isn't the worse case scenario this is the likely scenario. The declines will be worse if the recession gets bad. Also, it seems you rent is around $1650 and if you are going to be purchasing at $250,000 then your PITI is going to be about
$1900 a month (Assuming $200/month for HOA and/or insurance).
. And he also NEVER listens to the fact that nearly NO ONE pays for the 30 year loan they take out. The "life" of a 30 yr, fixed loan is usually about 10 years.
This doesn't change anything. The calculations will be similar, that $40k that you over paid compounds over time to be a pretty hefty amount.
If you disagree with the calculations state why you disagree. Its really just simple math though. Ranting doesn't support your position. I will read any argument you want to give for your positions, I won't read your rants.
This doesn't change anything. The calculations will be similar, that $40k that you over paid compounds over time to be a pretty hefty amount.
If you disagree with the calculations state why you disagree. Its really just simple math though. Ranting doesn't support your position. I will read any argument you want to give for your positions, I won't read your rants.
OK, assuming your $1,900/mo is accurate, and we won't even worry about the fact that most goes to interest, in the beginning. Just straight talk money! Sooooo, lets say she keeps that same monthly for 10 years. That comes to 228,000 in total payments. Since she didn't have a down, this is rather high but still under what she paid on paper of 250,000. And just to humor you, lets say she gets NO appreciation in 10 years and sells for the same $250,000. She made roughly 20,000 and lived, RENT FREE for 10 years. If she were to continue to rent for 10 years, giving that money to someone else, therefore having NOTHING to sell in 10 years, that $228,000 would be GONE!!!! Is THAT simple enough for ya? I hope so. Pretty scary I have to "give the numbers" for you to think my posts are more than rants.
*****EDIT: I'm also banking that in 10 years, she'll be able to sell for more than the $250,000 she paid. In fact, I'd almost guarentee it!! Lets say she earns a modest appreciation of 2% a year (this allows for a possible decline before an incline, to average the 2%). That means it will sell for just over $300,000, but then this edited "rant" is wateful, to doomers, who believe a home won't appreciate.
Last edited by fairmarketvalue; 10-27-2008 at 07:00 PM..
This isn't the worse case scenario this is the likely scenario. The declines will be worse if the recession gets bad. Also, it seems you rent is around $1650 and if you are going to be purchasing at $250,000 then your PITI is going to be about
$1900 a month (Assuming $200/month for HOA and/or insurance).
My rent is actually $1800 a month. And yes, that's market rent for the area. I just saw a "for rent" sign for a very similar property listed at $1,900 a month.
Last edited by sheri257; 10-27-2008 at 06:27 PM..
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Anyway, I still wish you good luck and don't let one, very misinformed person in our great population, make you insecure in your decision. Many, not just me, will tell you you did the right thing- for you!
