Zillow Advice: Rent vs. Buy - FHA plan will stimulate new home sales and help stabilize housing market

Just a general reply to this ...

Tue, 01 Sep 2009 14:46:00 GMT

Just a general reply to this subject:

My husband and I are middle-income people (husband still working full-time), with solid credit, hubby could use his VA benefits. In fact, when this housing debacle hit, we were wanting to purchase an RV when he retires and, at the time of our dreaming, we were renting. It was a nice apartment/management, but not where we would want to live our retirement years.

Then, with housing prices that would only wind up costing us a few dollars for house payment over the rent we were paying, it made no economic sense at all to buy an RV that would reduce in value when the first tires hit the street. We also figured in some of our health issues.

We did intend to re-submit our taxes for last year to use the $8,000 rebate and on closing on July 17th, we did so.

We found our home in Sheboygan, WI (southside), it was listed for $83,999 originally, It went down to $81,000 and then to $79,999 and we jumped on it!

Every inspector/assessor who looked it over for us (as well as our real estate agent) came out very, very impressed at the deal we were getting.

We are not "first-time buyers" other than in the sense that neither of us owned a home for many, many years. We are looking at our retirement years and did not want a "McMansion". We have a perfect home for us, but we could not have afforded, despite our ages (early 60's), a new home no matter how big or small.

There are a lot of real gems out there in existing homes - we found one.

Ellyn George
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Randy is absolutely right ...

Mon, 08 Jun 2009 15:56:00 GMT

Randy is absolutely right I live in Beaverton, Oregon and there are no new homes under 300k. I will not buy a townhome or condo just wait for the next crash. I make 75k a year and I can not afford a home its cheaper to rent.

Why will it stimulate new ...

Mon, 08 Jun 2009 15:40:00 GMT

Why will it stimulate new home sales, as opposed to existing home sales?

I know in my area it's as cheap to buy a new one as it is to buy a used one in most cases, if you account for repairs to the damage done one the way out by the deadbeats that got foreclosed on. And those who haven't been foreclosed on yet are still in fantasy land asking 2006 prices.

Why will it stimulate new ...

Mon, 08 Jun 2009 13:44:00 GMT

Why will it stimulate new home sales, as opposed to existing home sales? Especially given that the primary problem with the new home market, according to the homebuilder CEOs and analysts, is the mix of new homes built over the past decade are mostly high-end homes not suitable for first time buyers, ie. McMansions.

Regardless, giving away money won't solve the fundamental income-to-debt burden disparity. Until I see the FHA giving away money on a paycheck-by-paycheck basis, it's safe to assume the variable that's going to keep giving is PRICE.

Then again, no surprise frustrated real estate industry folk and government policy makers fall all over themselves to make it about everything BUT price.

More accurate title: ...

Mon, 08 Jun 2009 11:24:00 GMT

More accurate title: "FHA plan will stimulate new home sales and help stretch out housing market problems even longer, continuing to punish those who have acted responsibly."

I agree with Charlie, the if the media weren't so worthless, there would be a lot more outrage over this.

This is a great tool for ...

Mon, 08 Jun 2009 03:55:00 GMT

This is a great tool for FTHB's to get into a home but it will take agents and lenders like you and me to get the word out. I hardly hear boo about it from the media. Big shock there!