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SteadyState

Advice

  • (1185 Contributions,
  • 8 Best Answers,
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Are the home prices going to shoot down again wthin a couple years

Answer

Prices in the Bay Area are over inflated and driven with the promise of a forever after happy ending.If you buy now you will be buying at or near the peak of the current real estate cycle.If you wait till a slow down - anywhere from 1 year to two years away - you will likely be able to buy the same property for about 20% less.The SF Bay Area market is driven by investors and speculators hence we have more violent price fluctuations. If you are planning to stay in the home for about 10 years you will break even in most cases.---------------------------------------------------------------------------------------------------------------------------------------Now why do you want to buy in the SF Bay Area? Property taxes and agent commissions on high price homes will wipe you out.A wiser course of action is to rent from your neighbor and use the savings to invest in the market. Bay Area RE is highly correlated with the stock market. In the stock market you can diversify your portfolio. In buying a home you cannot.That is why if you make a wrong decision in housing you can be wiped out and setback for a few years. (Remember the tent cities in Sacramento occupied by home buyers who were foreclosed upon in 2008/2009 and whose credit was ruined so they could not even rent?)-----------------------------------------------------------------------------------------------------------------------------------------Given the above statements do what you think makes sense for your situation.  

  (0)
Are the home prices going to shoot down again wthin a couple years

Answer

Prices in the Bay Area are over inflated and driven with the promise of a forever after happy ending.If you buy now you will be buying at or near the peak of the current real estate cycle.If you wait till a slow down - anywhere from 1 year to two years away - you will likely be able to buy the same property for about 20% less.The SF Bay Area market is driven by investors and speculators hence we have more violent price fluctuations. If you are planning to stay in the home for about 10 years you will break even in most cases.---------------------------------------------------------------------------------------------------------------------------------------Now why do you want to buy in the SF Bay Area? Property taxes and agent commissions on high price homes will wipe you out.A wiser course of action is to rent from your neighbor and use the savings to invest in the market. Bay Area RE is highly correlated with the stock market. In the stock market you can diversify your portfolio. In buying a home you cannot.That is why if you make a wrong decision in housing you can be wiped out and setback for a few years. (Remember the tent cities in Sacramento occupied by home buyers who were foreclosed upon in 2008/2009 and whose credit was ruined so they could not even rent?)-----------------------------------------------------------------------------------------------------------------------------------------Given the above statements do what you think makes sense for your situation.  

  (0)
home value update

Answer

Must be a slow day for the Szabo Group. Despite that they did not read the Zillow good neighbor policy.

  (0)
home value update

Answer

Must be a slow day for the Szabo Group. Despite that they did not read the Zillow good neighbor policy.

  (1)
Buy or rent in Miami?

Answer

I did a quick and dirty back of the envelope calculation - give it as much weight as the amount you paid for this advice.With a price at $400K and 20% down and staying for 5 years - if your rent is below $2000 you rent and if your rent is above $2500 you buy.

  (1)
Buy or rent in Miami?

Answer

I did a quick and dirty back of the envelope calculation - give it as much weight as the amount you paid for this advice.With a price at $400K and 20% down and staying for 5 years - if your rent is below $2000 you rent and if your rent is above $2500 you buy.

  (0)
Buy or rent in Miami?

Answer

Rule of thumb : Rent and not buy with a 5 year horizon.If you provide some additional data: Roughly rentals per month in your area of interest and prices for comparable properties in the same area, a meaningful answer can be generated.You can start your research with the two links below:1. Read here first2. Then plug your numbers here to do some what if analysis

  (0)
Buy or rent in Miami?

Answer

Rule of thumb : Rent and not buy with a 5 year horizon.If you provide some additional data: Roughly rentals per month in your area of interest and prices for comparable properties in the same area, a meaningful answer can be generated.You can start your research with the two links below:1. Read here first2. Then plug your numbers here to do some what if analysis

  (0)