The house that we like, which is 1,100 sq feet on 7250 lot, costs $550-$600K. I know it kind of over price for that property but it locates in a good neighborhood. We could afford a down payment. However, we are afraid that we the housing bubble will burst. Should I just wait a little bit longer a few year more or jump in right now. We live fugally and have a lot of saving each month. My wife and I having about 170K in Saving. $50,000 in stocks and $120K in cash. Our gross combine monthly income is about $9000. Currently our monthly rent is $1200 for a two bedroom apartment. This is one of the biggest investment of my life and I don't want to make a mistake.
2006-06-26 15:44:10 · 7 answers · asked by cooldude_91801 2 in Business & Finance ➔ Renting & Real Estate
Housing prices in Los Angeles County as of May were still rising, but at a much slower rate than in previous periods. In most other parts of Southern California, housing costs are either flat or are beginning to drop (most notably Riverside, San Bernardino and San Diego counties). In other parts of the country, housing is starting to decline.
I believe that in LA County housing prices will follow the rest of the country and decline for awhile. Unfortunately, much of that decline will be triggered by rising interest rates. So you have to ask yourself: do you want your payments to go into a house that is declining in value, or to interest payments to the bank?
Long term, it doesn't matter when you buy. Housing will always rise long term. Many people who bought during the housing boom in the early 90s in LA County were downside for years after the bubble burst in 1991-1992. The decline bottomed out about 1997 and many people had recovered their losses and were in the black by 2000. People who held on through 2005 make a killing. If you're planning to stay for a long time, buy now. You'll be able to enjoy your new home longer.
If you're planning to stay a short time and perhaps move to a bigger house in a few years, wait awhile. Once you buy, you can't negotiate a lower price for the house, but you can always refinance your mortgage if interest rates decline.
2006-06-26 15:59:02 · answer #1 · answered by VinTek 7 · 4⤊ 0⤋
If you're renting, your bubble is already bursting at a rate of your monthly rent payment. Based on the information you provided, I would most definately purchase a home. I understand the fear that comes with a home purchase, but have you ever heard of a person who bought a home 10-20 years ago and lost money? Wouldn't you like to have bought some homes in Pasadena for 17k in the 1960's? As the population grows, don't you think land will be a scarce commodity? Even if prices drop, real estate goes in a cycle every 7 to 10 years (like in the early 1990s) with an upward growth that grows at a rate higher than inflation (6% average in the last 30 years), so you will be ahead of the game at a future time.
I can help you out with your home purchase and loan. I am located in Irvine, CA and am a licensed real estate broker (license number 01737366 verified at www.dre.ca.gov). I'll make sure that the offer you make is sensible and not over priced and make sure that I represent your best interest. I even give you up to $5000 at closing. Please see my website (www.amirifinancial.com) for more details. Also, you will only need to deal with me to check on the status of your home loan and property purchase, which will save time and energy. It's my job to know value and shift through the hurdles of contracts and negotiations.
Also, I want to state that even though it may look like I am biased or have a vested interest in you buying property, this is not the case. Real estate is the only investment where it is hard to lose money in. If you don't buy from me, I suggest you buy from someone else. I personally made a lot of money in real estate without knowing what I was doing at that time and all it took is the courage to jump in.
Good luck to you and I wish you well.
Regards,
Satar Naghshineh
satarnag@amirifinancial.com
2006-06-26 19:20:36 · answer #2 · answered by Anonymous · 0⤊ 1⤋
The sooner you can buy a place of your own the better.
This "rumored" bubble is just a scare tactic produced by the media.
If you are buying for a short time and looking to flip the property for a profit in the first year, then use caution.
However if this is a home you want to live in for many years, go for it!
Long term Real Estate is one of the best long term investments you can make and will continue to rise. There are always small hiccups in the market, but over time the trend continues upwards.
If you wait another 2 years then you will be paying even more for the same house.
Good luck,
Greg S.
2006-06-27 07:45:32 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Why are you getting a house? To live in, or as an investment? If it's the latter, there's never a good time. If it's the former, there's never a good time. If it's the right property and you can afford it, go for it.
2006-06-26 15:50:07 · answer #4 · answered by question_ahoy 5 · 0⤊ 1⤋
I would buy now and lock in a 30 year mortgage. LA's housing is always going to be higher then the rest of the country. You can check out the housing report
http://www.buildingonline.com/news/viewnews.pl?id=4178&subcategory=139
2006-06-26 15:49:27 · answer #5 · answered by chrome_rider 4 · 0⤊ 1⤋
It's good
2016-07-27 03:20:17 · answer #6 · answered by ? 3 · 0⤊ 0⤋
Thanks for the answers everyone xx
2016-08-23 00:37:19 · answer #7 · answered by cara 4 · 0⤊ 0⤋