If You Don’t Buy a House Now, You’re Stupid or Broke
Ladies and Gentlemen,
That is not MY headline but instead the headline of a BusinessWeek article today.
It seemed appropriate to post this based on what we have been discussing this week.
KCM Blog Posts Related to Info in Article:
Creating Wealth through Real Estate: Moving On Up
Interest Rates: Going Up or Down?
Is Real Estate Still a Good Investment?
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It is an emergency for first time home buyers! Interest rates are historically extremely low. Prices continue to remain histroically low. Inventory continues to increase. A formula for success! Your choices are simply – after a fall you either rise up or lay down and die.
This could be the last chance to buy your vacation home at what you would have paid in 2003. What are people thinking? Rates are excellent, banks are now lending, and waterfront bargains are everywhere!!!
Level heads will prevail. Don’t jump into this market based on fear that you’ll be left behind. Jump in because you like the house and want to live there. It is an indesputible fact that here’s a lot of inventory coming soon. Not that it isn’t a still buyer’s market, just that the rules of value and ‘location, location, location, still apply. Beware of the overzealous house-flipper.
Don’t ever believe the hype that pressures you into a decision you aren’t truly comfortable with.
Brian Cooney
CA Realtor since 1988
lic. #00993258
Keller Williams Realty
Serving LA, OC, & Riverside Counties
760-902-6070
Great points, Brian!Let me ask you a question. Forget the flipper. I agree 100% with you on that. However, let’s look at a regular buyer. If a family purchased a home in Orange County at today’s prices and mortgaged it at 5%, how do you think they would make out 10 years from now?
Historically every ten years real estate value has doubled. I speak of my own experience.
In 1982 I purchased my first house on the corner of two busy streets in Pasadena , California. At that time that house was on the market for over a year and the interest rate was 19%. The owner of the house was very frustrated and decided to carry the entire loan at 11% with a little down payment. I approached the seller and purchased that house for $120000.
Five years later in 1987 realtors were knocking on my door trying to get a listing due to a surge in market by influx of buyers coming from China. I sold my house and made $60000. then I invested that money in San Clemente and purchased two homes . In 1990 both of those homes doubled in value. I sold those and then bought at the time of deep recession on Orange county when nobody would buy any homes . In 1993 Orange county filed for the Bankruptcy and there were thousands of homes all over for sale. I started buying homes and kept them until 2004. and you know about the real estate market during 2000 and 2009.
Remember: When everyone sells, you buy. and when everyone buys you sell.
Good luck.
Sam Fard
First Team Estates
samfard@firstteam.com
Steve-
Have to disagree with this, albeit wasn’t your story. Broke people buying houses only serves to make them more broke. They can’t afford a down payment, they can’t afford the upkeep, they can’t afford the insurance and taxes that go with it, and then we find ourselves in a housing/economic slump that we’re in now when these people get foreclosed on.
Granted, it should be everyone’s goal to eventually own a home, but only when the time is right. It’s much better to rent for a period of time, build up some savings, and then start the home purchasing process.
I appreciate your site though!