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Old 12-18-2015, 09:09 AM
 
40 posts, read 40,031 times
Reputation: 49

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I'm new to the Bay and dont plan to buy anytime soon. I have great uncertainty in the near future and fear severe economic pain nation wide in the next two years. I need to stay mobile and debt free. Saddling yourself with a huge debt to save a few bucks on rent is insane. Asset prices will fall hard and given how inept our government is they will only make it worse. Buckle up.
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Old 12-18-2015, 09:10 AM
 
1,039 posts, read 1,158,484 times
Reputation: 817
Worst time would have been buying the day before an earthquke
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Old 12-18-2015, 09:51 AM
 
28,115 posts, read 63,666,290 times
Reputation: 23268
Quote:
Originally Posted by MajorDMP View Post
I'm new to the Bay and dont plan to buy anytime soon. I have great uncertainty in the near future and fear severe economic pain nation wide in the next two years. I need to stay mobile and debt free. Saddling yourself with a huge debt to save a few bucks on rent is insane. Asset prices will fall hard and given how inept our government is they will only make it worse. Buckle up.
You are not alone.... many believe this otherwise the landlord business wouldn't be as viable as it is...

When a 2 bedroom 1 bath apartment has well over 100 inquiries in 48 hours... renting or the competition for rentals is just as extreme...

There was a time when the same unit would generate 3 of 4 applications in a week...

I do believe you are right in that the cycle is posed for a change.

The question is when prices are down... many are no longer interested.
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Old 12-18-2015, 11:14 AM
 
Location: SF Bay Area
12,287 posts, read 9,819,598 times
Reputation: 6509
Quote:
Originally Posted by Ultrarunner View Post
You are not alone.... many believe this otherwise the landlord business wouldn't be as viable as it is...

When a 2 bedroom 1 bath apartment has well over 100 inquiries in 48 hours... renting or the competition for rentals is just as extreme...

There was a time when the same unit would generate 3 of 4 applications in a week...

I do believe you are right in that the cycle is posed for a change.

The question is when prices are down... many are no longer interested.
The smart ones are the ones that buy then.
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Old 12-18-2015, 02:13 PM
 
40 posts, read 40,031 times
Reputation: 49
I am saving like a mad man and virtually debt free minus two small student loans. When hell reaches the Bay, and homeowners are bailing on their properties, I will swoop in and finally get a little piece of heaven that is reasonable for my budget. I wont buy until then. Of course that all depends, if I still have a job or waiting in line at the nearby soup kitchen.
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Old 12-18-2015, 06:37 PM
 
1,185 posts, read 1,502,989 times
Reputation: 2297
Quote:
Originally Posted by MajorDMP View Post
I am saving like a mad man and virtually debt free minus two small student loans. When hell reaches the Bay, and homeowners are bailing on their properties, I will swoop in and finally get a little piece of heaven that is reasonable for my budget. I wont buy until then. Of course that all depends, if I still have a job or waiting in line at the nearby soup kitchen.
You're playing it smart. People buying right now are catching a falling knife.

And it looks like lenders are up to their old tricks again.

"Many lenders say they expect credit standards for mortgages to be lowered even further in the next quarter."

Lenders predict lower mortgage rates in early 2016 - TODAY.com

I'm no expert, but anyone else remember another time with super-inflated house prices, relaxed lending standards, and a market full of buyers who were borrowing beyond a comfortable debt-to-income ratio?

Looks like we're in for another crash in the next few years.

I'm curious to see how many new mortgages are getting the "teaser arms" or are going over the 0.50 DTI ratio.
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Old 12-18-2015, 08:10 PM
 
Location: san jose
207 posts, read 257,336 times
Reputation: 60
It would be foolish for them if they do so. Moreover ppl learn from mistakes. Nevertheless Yelen mentioned that interest rates would raise in 2016 which would make buying difficult. Consequently those people will rent and drive rents even higher. There is no right or wrong answer to whether this is right time to buy or not or whether housing will crash anytime soon.
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Old 12-19-2015, 11:45 AM
 
28,115 posts, read 63,666,290 times
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Higher Interest Rates mean higher payments...

Prices were really down when interest rates were 15% and that was considered low...
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Old 12-19-2015, 04:24 PM
 
Location: san jose
207 posts, read 257,336 times
Reputation: 60
for 15% i agree, but by 0.25 - 0.5% (raise as per Yelen) i dont think so.
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Old 12-20-2015, 12:22 AM
 
28,115 posts, read 63,666,290 times
Reputation: 23268
It will be interesting to see how this plays out...

Conventional wisdom said 6% for a 30 year fixed would be absolute rock bottom and I know people with sub 4% 30 year and I have a 2.75% 15 fixed with zero cost...

Never really isn't forever...
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