I have been lurking on this site for quite sometime and I am continuously struck by the one-sided nature of comments. It is no wonder no one on the flip side responds, they are outnumbered and intimidated I am sure.
Anyway, my husband and I recently moved here from the east coast for family and quality of life. We are buying now because we have 2 children and don’t choose to raise them in an apartment or temporary rental housing. I sold a home in CT and still own a condo in LA with a lot of equity. We are very financially stable with more than $300K in the bank and a combined total of more than $400K in 401K and another 100K or so in stocks. A shame I have to justify our finances, but such is life on this board.
Are we dumb for buying now? We think not — we are looking for a stable home for our children and a non-transient lifestyle. I think you all underestimate the power of family and the need for stability with children. We are paying a hefty sum for a 4 bdrm/4.5 bath home that is about 3000 sq ft on a 1/2 acre lot. Not to flip, but to live. Renting sucks plain and simple.
I bought my condo in LA during a downturn and realize that the market is cyclical. But all of you doom and gloomers are out of line. I remember 20 years ago, my mother could buy a home in Nor Cal for about 140K — she thought it was too much on her $38K/year job. She also thought prices would come down dramatically and kept renting. Guess what??? Rent went up and quickly surpassed what that mortgage for the $140K home would have been.
What’s the point? Housing is high but renting is as well. I’m not willing to rent any longer and sacrifice not having stability in hopes of getting $80K or 90K more off a home. In the end, higher interest rates will mean the same payment anyway or a landlord raising prices will mean the same.
