Right now I can buy a palce but...everyone is giving me diff advice. Seems as though most say RENT right now because prices will continue to go down thru 2008. I always though by renting it was a lot like throwing your money ou the window being that your not paying on a mortgage. Whay do you people think. I'm in California.
2007-10-18 12:43:23 · 11 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Ask yourself: are you buying it mainly as an investment that you'll want to sell in a few years or are you planning on living there long term?
If your time horizon is short term, I would not buy until the market bottoms and starts to recover. No one really knows yet when that will be.
If you are confident that you will live there 10+ years, it may be a good time to buy in 2008 while the market is depressed and interest rates may be lower than today.
2007-10-18 12:57:05 · answer #1 · answered by Anonymous · 1⤊ 0⤋
The real estate market will go down for maybe 6 months more. But getting in now is not a bad idea. The only difference about renting and owning is taxes find out what your local tax rate is going to be and see if you really want to pay that much extra a year.
You certainly can find good deals now it is a buyers market so take advantage you might want to wait a few months more but start searching.
Make sure what your annual taxes is going to be and try to put at least 20% down. That way you will save money on the long run. (Please dont take that 0% down it is a horrible mistake you will end up paying 3 or 4 times the value of the house)
2007-10-18 12:52:51 · answer #2 · answered by adrenalineguy87 2 · 3⤊ 0⤋
You're paying on a mortgage.
It's just not yours.
If I were you......I would save as much every month as I could.
Make sure my credit was ok now or start working on it, then I would probably buy this time next year....or during holiday season next year. (however can't guarantee rates will be low then too)
However, that being said........and living in Ca myself.....bay area, there are alot of steals out there. Next year you may be looking at previously owned homes in older areas, when right now builders are really heavily discounting new homes in nice new areas.
I wouldn't try to time the market. If I was settling down, I would go after a price range with a payment I felt comfortable with......not an adjustable, low payment..... but a 30 fixed that wont change on you.
I don't know where in CA you are but even in the Bay Area bedroom communities have seen prices drop so that first time buyers can get in without a Jumbo loan (under $417K).
If you plan to live there for some time..don't worry about losing $ or prices dropping........you don't lose money until you sell. If you don't need to sell I wouldn't even watch prices for the first few years.
When gramps bought his home, it cost $12,000.
When my parents bought their first home it was $89,000.
When I bought my first home it was $128,000.
The home I bought just 8 years ago costs $189K. At the time I bought right....with land and a rental property on the lot. Now it would sell for well over $600K (appraised last mo).
You have to get in when you can.....ride out the dips.......a buyers market is the time to do that.
Right now you can get all closing costs paid and get a super deal on a place. I have a client right now getting ready to close on a $330k home for $289K and the sellers are paying all of their closing costs. It is a great time for buyers......not so much sellers.
Good Luck
OBA™
2007-10-18 14:48:33 · answer #3 · answered by Anonymous · 1⤊ 1⤋
That depends upon where you are in CA. If you're in the Bay area, prices are not dropping much if at all. If you're in LA, that's a different story. Even so, it depends upon where in LA as some areas are doing much better than others.
If you need a place to live and plan on staying there several years, go ahead and buy while interest rates are at near historic lows. Even though prices may drop somewhat over the next year it's likely that interest rates will rise. That will leave you in the same cash-flow situation either way so if you need digs, buy now. It's a buyer's market, make use of it while you can!
2007-10-18 12:56:30 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 0⤋
If you can buy, buy. Maybe look into a duplex situation where you can live in one side and rent out the other side to pay most of the mortage. That's what I did. Keep checking the market for any good deals. If you see one, pounce on it. If not just keep renting until you find something you can afford and like. Now its def a buyers market cause theirs an overflow of homes on the market, so you can usually haggle the price down. Good luck!
2007-10-18 12:54:27 · answer #5 · answered by integragirl98 2 · 1⤊ 0⤋
I'm a RE investor and I think it's a great time to be a buyer right now, but it's gonna get better. I think you should wait another 1/2 year to a year. When you do buy, be sure to look at foreclosed properties. These days, unlike the past, many foreclosures are move-in condition requiring little to no fix up.
2007-10-18 13:02:17 · answer #6 · answered by zaidin 2 · 1⤊ 0⤋
Even if the real estate market continues downward through 2008... it will rebound at some point. You have to look at how long you are planning to own the property, and wait for a return on investment. Purchasing property now, with a downward spiraling market, will not hurt you unless you cannot hold out until it rebounds.
2007-10-18 12:55:23 · answer #7 · answered by Anonymous · 2⤊ 0⤋
If you found a place you absolutely loved, I would buy today.
Sure prices may go down a little next year but WHO CARES!
Homes are places to be enjoyed. Not for speculation.
America has gotten caught up in this mentality that they can "Time" the bottom in the real estate market.
Can't be done.
Were close to the bottom so go ahead and jump if you find what you want.
Good Luck!
2007-10-18 12:55:11 · answer #8 · answered by Terry S 5 · 2⤊ 0⤋
How much of a tax deduction will you get from renting? I would try to purchase a house by early spring. Prices will not erode greatly past that point unless we drop into a recession.in the meantime.
2007-10-18 13:12:23 · answer #9 · answered by Bobcat 3 · 0⤊ 0⤋
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2016-10-07 04:43:12 · answer #10 · answered by ? 4 · 0⤊ 0⤋