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This thread is currently closed for responses.
- sunnyview
- Contributions:25127
[content removed by moderator for being off-topic]
I really feel like arguing with this, but they are all valid points.
- novatopro
- Contributions:18
Well said Splang.
- titan10
- Contributions:826
definitely valid points. However, here are some reasons to consider buying now if you are renting:
Interest rates are at record lows, and will probably skyrocket once inflation begins to go.
Some markets have had purchases increasing in huge numbers, reducing inventory to 3-4 months worth (this is where I live, maybe not for you)
Many areas have rents that are nearly double what a 30 yr mortgage goes for with 20% down with taxes and ins included.(once again, this is where I am, not neccesarily you)
The comment that the market will be flat for a long period of time also isnt necessarily true. It depends on where you live, local unemployment rates, local income (ie. affordability), etc. Once again, where I live, many people have money to put down on a home, but lack the credit. These are all of the people that have lost a home. Where I am, this started in jan 06, and those that lost their home then will soon have the credit to buy. These are people that were making 100k a year, but were stupid about buying multiple homes over 800k a peice, because they thought the market would never fall.
Interest rates are at record lows, and will probably skyrocket once inflation begins to go.
Some markets have had purchases increasing in huge numbers, reducing inventory to 3-4 months worth (this is where I live, maybe not for you)
Many areas have rents that are nearly double what a 30 yr mortgage goes for with 20% down with taxes and ins included.(once again, this is where I am, not neccesarily you)
The comment that the market will be flat for a long period of time also isnt necessarily true. It depends on where you live, local unemployment rates, local income (ie. affordability), etc. Once again, where I live, many people have money to put down on a home, but lack the credit. These are all of the people that have lost a home. Where I am, this started in jan 06, and those that lost their home then will soon have the credit to buy. These are people that were making 100k a year, but were stupid about buying multiple homes over 800k a peice, because they thought the market would never fall.
titan10,
what market are you in?
what market are you in?
- titan10
- Contributions:826
corona, ca. in riverside county
- titan10
- Contributions:826
dont get me wrong, Im not saying things are perfect. It is just some of the critical things for the market to start the change are happening here. There is, however, high unemployment, and more forclosures on there way.
Corona??? Are you friggen serious!? For a while there I thought, Ok this guy is saying all this because he must be in some mid west small town that never experience a major bubble. You are in Corona! HAHAHAHAHAAH!!! Dude you are so wrong. This is the epicentre of this crap. More foreclosures are around he corner. If people in the Inland Empire had so much disposable cash to put down why the plethora of foreclosures!!! This area has been and is predominantly blue collar folks that don't have the income and education to sustain such bubble and current prices! Get real pal. Thanks for the laugh though!
http://housing-kaboom.blogspot.com/
http://housing-kaboom.blogspot.com/
It's still not a good time to buy in the Inland Empire.
- Justin Bowen, "jabowen"
- Contributions:69
If now is not a good time to buy why are all well priced foreclosures being sold in less than 2 weeks with multiple offers, by investors who are renting them out and getting people like you to pay their mortgages for them. Why would you not want to pay for a 30yr fixed mortgage at @5% for the same amount you pay for rent? Sure the price may drop another 10%, but if your rental drops in value does your rent? No, it may increase if your land lord wants to. The value of your home will increase. Maybe tomorrow, next month or next decade, but it will always rebound.
As for your thoughts about the people that don't have money, thats false. There are a lot of people who do have the money in the bank, but can not get financing. When you buy a house for $700k, and then the value drops to $350k and your still making those large payments and barely getting by, it takes a toll on you mentally. Then you see you can rent a similar home that some investor just bought as a foreclosure for drastically less than your payments. You stop making payments on your home, save 5-9 months worth of payments up, get foreclosed on and move into a nice rental and wait until you are able to financing.
As for your thoughts about the people that don't have money, thats false. There are a lot of people who do have the money in the bank, but can not get financing. When you buy a house for $700k, and then the value drops to $350k and your still making those large payments and barely getting by, it takes a toll on you mentally. Then you see you can rent a similar home that some investor just bought as a foreclosure for drastically less than your payments. You stop making payments on your home, save 5-9 months worth of payments up, get foreclosed on and move into a nice rental and wait until you are able to financing.
Why the condascending attitude? For the record, I am not a renter.
List a Hummer vehicle on craigslist for 1$ and of course it will sell. But does that make it a wise investment? And when the the guy mentioned people in Corona have money, I assumed he meant money the right way (work, investment, etc.). Not being a low life deadbeat that kept he mortgage payments!
Anywa, your opinion as a used house saleman is biased. You dont sell, you dont eat. Simple as that. Of course you want people to jump in during some tough economic times "Sure the price may drop another 10%"
nice one Einstein!
[content removed by moderator for being a personal insult]
List a Hummer vehicle on craigslist for 1$ and of course it will sell. But does that make it a wise investment? And when the the guy mentioned people in Corona have money, I assumed he meant money the right way (work, investment, etc.). Not being a low life deadbeat that kept he mortgage payments!
Anywa, your opinion as a used house saleman is biased. You dont sell, you dont eat. Simple as that. Of course you want people to jump in during some tough economic times "Sure the price may drop another 10%"
nice one Einstein!
[content removed by moderator for being a personal insult]
- sunnyview
- Contributions:25127
If people have money in the bank, that's great, but that doesn't automatically mean it's time to buy. I have enough money to buy right now, and I can get financing today with no problem. It is still not time for me to buy. The market is too unstable for my taste in many areas and with rents in the falling in the Inland Empire from a current $1500 a month to about $979 a month forecast by the end of the year, investors must be careful to time their purchase well and buy for the long term link. Maybe I'm a chicken investor, but I don't want to risk my money when I don't have to.
- titan10
- Contributions:826
If you want to discuss it, look up the numbers. Inventory in corona down from over 3000 listings to under 1450 in one year.
My piti-$1547 after 10% down
My neighbors rent on a model match that is thrashed when mine has travertine, granite, etc-1800
My principle paid down every month $325
His principle paid down-0
My tax incentive-$15k tax deductible interest= about $4k
His tax incentive- $125 renters credit
The principle paid down and amount less than rent alone add to almost $575 a month
I
''Maybe I'm a chicken investor, but I don't want to risk my money when I don't have to.''
You are a wise investor. It's the guys like Justin that don't give an F if you or I lose our down payment 6 months from now. All they want you to do is buy now so they can get paid. He deserves to get cockpunched.
You are a wise investor. It's the guys like Justin that don't give an F if you or I lose our down payment 6 months from now. All they want you to do is buy now so they can get paid. He deserves to get cockpunched.
- jal74
- Contributions:1077
If now is not a good time to buy why are all well priced foreclosures being sold in less than 2 weeks with multiple offers, by investors who are renting them out and getting people like you to pay their mortgages for them. Why would you not want to pay for a 30yr fixed mortgage at @5% for the same amount you pay for rent? Sure the price may drop another 10%, but if your rental drops in value does your rent? No, it may increase if your land lord wants to. The value of your home will increase. Maybe tomorrow, next month or next decade, but it will always rebound.
In answer to all of the questions you asked above, the simple answer is because the price of the house will be less in 12 months. I realize that as a partner at a CPA firm that my education and business experience allows me to see the simple answers where the used house salesman cannot.
oh year, I forgot
I need my COMMISH is all you really need to say to yourself to translate whenever a used house salesman says now is a great time to buy.
Kind Regards
In answer to all of the questions you asked above, the simple answer is because the price of the house will be less in 12 months. I realize that as a partner at a CPA firm that my education and business experience allows me to see the simple answers where the used house salesman cannot.
oh year, I forgot
I need my COMMISH is all you really need to say to yourself to translate whenever a used house salesman says now is a great time to buy.
Kind Regards
Titan
Get your head out of the sand. Prices will be lower in 12 months. Your renter neighbor will be able to buy same home for way less saving him thousands over the year of the loan. Don't focus too much on rates. Rates can always be refinanced but overpaying by buying prematurely in the epicenter know as Corona, is permanent.
Get your head out of the sand. Prices will be lower in 12 months. Your renter neighbor will be able to buy same home for way less saving him thousands over the year of the loan. Don't focus too much on rates. Rates can always be refinanced but overpaying by buying prematurely in the epicenter know as Corona, is permanent.
- titan10
- Contributions:826
This why houses are dissapearing. They are too cheap now.
I personally know a large number of people who are doctors, teachers, or other high paying jobs that bought too much house, had a payment of over $6000 at one point, or multiple homes with neg am loans that the rent didnt cover, and lost their house. They still have their great jobs, and now rent for $1500-$2k a month, and have been stashing money away, getting ready to buy again.
These people didnt lose their house because they lost their job. This market has already in some places lost 70% of its value. In Menifee, you can buy a 2000 ft house for $125000 and rent it out for $1500.
20% down puts rent at almost double cost.
Investors are coming in from all over the place to buy in the inland empire because the rent/own ratio is too cheap. I know a property manager that has a client from russia feeding them money to buy properties here. Ive seen investors buying multiple houses at a time.
The reason the inland empire has the best potential to get out of it sooner, is that it was the first to collapse.
I personally know a large number of people who are doctors, teachers, or other high paying jobs that bought too much house, had a payment of over $6000 at one point, or multiple homes with neg am loans that the rent didnt cover, and lost their house. They still have their great jobs, and now rent for $1500-$2k a month, and have been stashing money away, getting ready to buy again.
These people didnt lose their house because they lost their job. This market has already in some places lost 70% of its value. In Menifee, you can buy a 2000 ft house for $125000 and rent it out for $1500.
20% down puts rent at almost double cost.
Investors are coming in from all over the place to buy in the inland empire because the rent/own ratio is too cheap. I know a property manager that has a client from russia feeding them money to buy properties here. Ive seen investors buying multiple houses at a time.
The reason the inland empire has the best potential to get out of it sooner, is that it was the first to collapse.
- LyndieQ
- Contributions:236
Oh, Oh, Oh, how did I not see this yesterday???? I was wondering when Spleng was going to give us another great URL, altho' may have missed other new ones posted? I LOVE how ya'll jump right on these predators that show up out of nowhere to spout their "facts".
Chutta, with "I really feel like arguing with this, but they are all valid points." LOL, you are so funny! It's the mood swings, Buddy. :) Tomorrow you'll be back, reconciled with the facts, and I'm soooo glad you're honest enough to say so!
But, titan10 and jabowen, SHAME ON YOU! I'm starting to feel angry when I see posts like yours. AS IF! All your figures are tripe, titan, and jabowen, with, "If now is not a good time to buy why are all well priced foreclosures being sold in less than 2 weeks"... that's just a flat-out lie, and you know it. What's "well priced" jabowen? 75% off "fair market value" as of 2001?
Chutta, with "I really feel like arguing with this, but they are all valid points." LOL, you are so funny! It's the mood swings, Buddy. :) Tomorrow you'll be back, reconciled with the facts, and I'm soooo glad you're honest enough to say so!
But, titan10 and jabowen, SHAME ON YOU! I'm starting to feel angry when I see posts like yours. AS IF! All your figures are tripe, titan, and jabowen, with, "If now is not a good time to buy why are all well priced foreclosures being sold in less than 2 weeks"... that's just a flat-out lie, and you know it. What's "well priced" jabowen? 75% off "fair market value" as of 2001?
- sunnyview
- Contributions:25127
Are we talking about Corona in the IE with a higher than average unemployment rate of 9.1% that is second only in unemployment to Detroit? link The same Corona when foreclosures are up 180% over 2007? link I am sorry, but I do not have the stomach for that kind of risk without any bottom in sight. If you do, I hope it works out for you. I am not bitter when others prosper so I wish you luck, but I'm sorry to say I will not join you in investing in the IE right now.
- LyndieQ
- Contributions:236
I'm proud to be part of this Zillow community now, where there are people looking out for the predatory posters, to protect the innocents like me.
''The reason the inland empire has the best potential to get out of it sooner, is that it was the first to collapse.''
Finally a point I can agree with. But statistics show, the bulk of the IE are blue collar workers that foreclosed due to over extending themselves. It doesn't matter how they lost a home. The bottom line is they foreclosed and even with all that money they stole, it is going to be many years before they willbe able to get credit to buy.
Finally a point I can agree with. But statistics show, the bulk of the IE are blue collar workers that foreclosed due to over extending themselves. It doesn't matter how they lost a home. The bottom line is they foreclosed and even with all that money they stole, it is going to be many years before they willbe able to get credit to buy.
Titan
Forelcosure is a MAJOR impact on one's credit. Do you honesltly believe at this juncture, that banks will oan to these people in 2-3 years? And do you honestly believe that 12k of payments they stole (6 months max before getting thrown out) will still be in their bank accounts when they FINALLY are able to get a loan????
Forelcosure is a MAJOR impact on one's credit. Do you honesltly believe at this juncture, that banks will oan to these people in 2-3 years? And do you honestly believe that 12k of payments they stole (6 months max before getting thrown out) will still be in their bank accounts when they FINALLY are able to get a loan????
- titan10
- Contributions:826
so cal, where are you at?
I live in Chino Hills. I have many friends/family and real estate pro friends in Chino, Riverslide and Fontucky so I am very well aware of the market conditions.
- Hunter Family
- Contributions:24
That's funny thinking that people who lost their houses just saved their mortgage payments and will be buying in a few years. That is such a load of crap. A short sale house that we tried to buy, the owner lost his job and got a lower paying new job. He couldn't even aford to repair the broken water heater so every morning he would go to a friend's house to shower. I am doubting that he was pocketing his mortgage payments to put into savings to buy another house. That statement is naive.
- titan10
- Contributions:826
sunnyview,
You are right about the foreclosures and unemployment. Keep in mind, I already brought that up. I dont know that prices will go up immediately, or even soon for that matter. I just know that if I can put in 26k on a 130000 house, and rent it out for 1500 a month, and make arount $800 a month after tax and insurance (not factoring for vacancy or repairs). Thats a great return on my money.
Regarding the article you brought up, maybe I read it wrong, but it was saying that mortgage was equal to rents currently at 1154 and mortgages will drop to 979, not rents. I dont know where the 1500 number came from. Also, this is covering a lare area. Riverside and San Bernardino are HUGE. Look more local to specific cities.
You are right about the foreclosures and unemployment. Keep in mind, I already brought that up. I dont know that prices will go up immediately, or even soon for that matter. I just know that if I can put in 26k on a 130000 house, and rent it out for 1500 a month, and make arount $800 a month after tax and insurance (not factoring for vacancy or repairs). Thats a great return on my money.
Regarding the article you brought up, maybe I read it wrong, but it was saying that mortgage was equal to rents currently at 1154 and mortgages will drop to 979, not rents. I dont know where the 1500 number came from. Also, this is covering a lare area. Riverside and San Bernardino are HUGE. Look more local to specific cities.
"Carmichael said that in California's foreclosure-plagued Inland Empire, Riverside and San Bernardino counties east of Los Angeles, the average monthly rent for an apartment is $1,157 and the average after-tax monthly mortgage payment on a median-priced single-family detached home is $1,154 -- and is projected to decline to $979 by mid-year."
- titan10
- Contributions:826
lyndie, why do you say shame on you to me? I am not beating anyone over the head saying buy now. I am just bringing up points for discussion, and noting my personal experience and research(which is limited). I just want to see more than the market will keep falling because it has fallen the most. That is the worst logic there is. Unempl. and forclosures are the negs. that will matter most. But there is also the affordability that is improving very fast.
- titan10
- Contributions:826
You say blue collar workers, but do you realize what a blue collar worker makes here?
In construction, my field, blocklayers currently make around $35 an hour! Concrete finishers make up to $40 an hour. My neighbor is a mechanic at a bottling factory and makes $65k a year.
"Five Reasons Not to Buy a Home This Year"
"1. Prices are still dropping
Data shows that prices are still dropping in many markets. If you buy today, your home could be worth less in a year or even two.
2. This sale will be on for a while
this housing recovery could look like an "L" -- once a bottom hits, prices will flat line
3. You may not stay put
If prices continue to drop, you might have to be in that home for longer than you thought in order for the investment to make financial sense.
4. Your job could be the next to go
But even if you're comfortable with your own job security, investigate how your future neighbors are faring.
5. Your cash reserves will be eaten up
If your down payment would deplete your rainy day fund, keep saving for a while before house hunting.
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