[quote=eavesdropper][quote=SellingMyHome]…I bought in 2003 (halfway up the price rises), and thought it was going to be a starter home, one to live in for a few years, and then upgrade when we had kids. Well, the kids came along, but the market crashed. For several reasons, we decided to get rid of the house. It was a strategic move on our part, as there was no way the house was going to sell for a profit in the next 10-15 years.
So, now we are capable of buying again. To me it looks like the market is about near its lowest, maybe another year or so more still. I don’t mind renting a house, actually like not worrying about fixing things. BUT, my wife likes the idea of owning, and in the end, so do I.[/quote]
I won’t comment on whether you should or shouldn’t. I may have an opinion, but I’ll assume that my opinion is irrelevant to your decision.
However, I did notice that you cited your inability to sell the house at a profit in the next 10-15 years was the trigger for your self-described strategic default.
If that is, indeed, the case, I’d say that you probably shouldn’t get back into home ownership until there is clear-cut evidence of a sustainable housing recovery. You stated, “To me it looks like the market is about near its lowest, maybe another year or so more still.” I’m curious to know why it is that you feel that way; have you identified any economic indicators that would influence your thinking in that direction? I’m not being smartass here – I really do want to know.
Also, WHY do you and your wife “like the idea of owning”? I understand the whole “wanting my own roof over my head” thing, but there is a genuine risk involved with a transaction like this. If you are troubled enough by the changes in the housing values that you proactively sell a house to avoid the fallout, it would appear that this is something to consider before jumping back in the pool.
A belief that you would be unable to sell for a profit in a decade is what caused you to take a very risky financial step a couple years back (the short sale decision), and that’s not exactly compatible with the whole American Dream thing. Essentially, what I’m saying is that you have to decide what’s important: home ownership or profit (and, what’s more, how much profit). Otherwise, you may well come up against the same issues in a couple years if the market isn’t showing signs of recovery, or not recovering at a pace with which you feel comfortable.
I’m not saying that you shouldn’t be prudent in this decision. Of course, investing money wisely is always a good and important thing. But if you are unable to deal with the economic vagaries of the real estate market (i.e., your overwhelming concern about selling for a profit in 10-15 years was what caused you to short-sell, not financial hardship), housing may not be the place for you to sink a very significant portion of your money.
Best of luck in coming to a decision.[/quote]
We bought in 2003 hoping to own it for about 10 years , and then move up. I was pretty bitter that by the time we had kids and wanted a bigger house in a good school district, we couldn’t sell our house. So, we dumped it onto a bank that was the cause of the mess this country is in now.
We rent now, but while it is nice to not have to worry about maintenance, etc., it is a bit unnerving knowing we could be out on the street if the landlord wanted to.
So, with two young kids, we would like some stability in owning our own house.
Was I really that dumb when I bought my first house in 2003? I didn’t get an exotic loan, had, still have, good income, etc. How many of you knew the market was going to crash in 5 years? Really? Honestly? Maybe a few of you.
I am now a lot more informed about the market , and won’t forget the bubble. My kids will probably not remember, and their generation will make the same mistakes. To answer your question, from what I’ve seen and read, it looks like the market is about at the bottom, plus or minus 5%.
