I am sick and tired of renting, but am unsure about the market. Many people have told me to wait, others say I should take advantage of the low interest rates. Any suggestions?
2007-11-15 14:07:52 · 8 answers · asked by Mariposa13 3 in Business & Finance ➔ Renting & Real Estate
I am seeking to live in the home for at least three years, and I would like to buy something in the city of L.A., Calif.
2007-11-16 05:02:03 · update #1
Right now is a really good time to buy. Not only is it a Buyer's market with prices hitting what they were five years ago, but interest rates have not sky rocketed yet and there are more and more foreclosures and short pays on the market everyday. I believe it's far better to buy now then to wait for the next president to get into office and watch them try to screw with the interest rates to control where Americans put their money.
The biggest benefit of buying this year over next year is what you will have to show to get the loan. If you wait until January, you will have to bust your rear to get your taxes done to qualify for a loan. If you do it now, you can go on last year's taxes and the taxes from the year before (assuming you choose a full doc loan versus a stated income).
Just remember...it's a buyer's market. That means you can drive a really hard bargain, even on short pay properties where the bank owns the property. Don't jump on the first one that comes along. Find a decent home with a foundation, and always always always get the inspection. It gives you extra bargaining power even after you have agreed on a property. (An inspection got us a new septic tank and an extra $5,000 back.)
Hope this helps.
2007-11-15 14:18:25 · answer #1 · answered by E.T. Barton 5 · 0⤊ 0⤋
Rates are still low historically low but are creeping up. You will have your choice of sellers now and can generally buy more house for your money at a lower price than just a few years ago. As in most parts of the country the sellers are willing to pay all your closing costs and make it worth your while because other than you, no one else much is buying!!. As a loan officer for a national bank, I would ask you however how long you plan to stay in the area? If you plan to move out of your area in the next year or 2 then don't buy. Other wise look at houses, or perhaps a condo/townhouse, that will be much like what you're used to renting, but have the tax benefits of owning, as well you can paint any color you want or have pets which you may not be allowed to have now. Why make the landlord richer? If you'd like more detailed help on low or no $ down 1st time buyer programs let me know. Good Luck!!
2007-11-15 22:57:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Realistically the chances of interest rates taking a significant jump over the next three to 5 months is not all that great. It is always a risk, but one most "experts" don't see as likely. So the question is, are you ready to buy a house now. Do you have enough for a downpayment? If so, start exploring your options. Here are several important things to keep in mind:
-use a realtor! Find one you like and that will work with you in your price range.
-know how much you can afford and do not overspend
-DO NOT get into a mortgage that you cannot afford, that is interest only or that will potentially adjust to a much higher rate 2-3 years down the road.
-There are always more houses for sale in the spring than right now. So you will have a much better selection if you wait a few more months.
Good luck.
2007-11-15 22:19:37 · answer #3 · answered by HoustonTexan 3 · 0⤊ 0⤋
Start looking now. Go to a bank and get preapproved. This will give you an idea of what you should be looking for.
I am in the real estate business, well kind of.
My thinking is that the market in most places has not hit bottom. However, I feel the Interest rates will only rise from here on. GOD FORBID THE DEMS TAKE OVER!
I would look to make an aggressive move in the beginning of the year. Depending on the situation, you can take advantage of the homeowner being behind on tahes or HOA etc. You will have to pay them, but you will be in the cat-bird seat.
I wouldn't wait too long though.
That is my SE US opinion!
Good Luck!
GO FOR IT!
2007-11-15 22:32:55 · answer #4 · answered by Wine and Window Guy 4 · 0⤊ 0⤋
This question has more to do with where you live. Mortgage rates are at historical lows and the cost of money is relatively inexpensive.
If you are in a declining area like the Inland Empire of California wait it out until the prices go lower in around 18 months. It really matters what is going on in your local market. Use the home value trends from Zillow.com and look at foreclosures at foreclosureradar.com.
Good Luck!
RJH
Empire Realty
http://www.empireteam.com/
2007-11-16 01:06:00 · answer #5 · answered by Empire Realty - Upland CA 2 · 0⤊ 0⤋
There are many great deals to be had out there - just don't pay retail. Mortgage rates are still excellent, so that is a bonus. The sooner you become a home owner, the sooner, you start building your equity and taking advantage of the tax benefits of home ownership.
2007-11-15 23:14:58 · answer #6 · answered by Anthony 3 · 0⤊ 0⤋
Ca is number one in the amount of depreciation and foreclosures that is expected to happen over the next year depreciation of 25%. Would wait as you will end up with a better deal and not end up out of equity in the first year
2007-11-16 17:40:41 · answer #7 · answered by Pengy 7 · 0⤊ 0⤋
Doesn't hurt to start looking into it, it is definitely a buyers market! Might as well know what you qualify for and what your payment range will look like.
I honestly do not think there will be that great a difference between now and 2008.
Congratulations and good luck!
2007-11-15 22:16:38 · answer #8 · answered by U812B4 4 · 0⤊ 0⤋