KIBU, it’s a lowballer’s paradise, nobody’s looking. Even with the bailout or without it, I will still have to rent. Double my sq ft at rent price, that’s the new goal, my only fear is that some idiot who is oblivious to the news outbids me, but as far as i can see, there’s never been a better week to shop.
In the grand scheme of things, I’m hedging. I completely divested in 2005. Even if my offer tomorrow is taken and things fall further, the plan is to buy a rental 6 months later. Even if i were to buy the primary at 280k and a rental at 120k with 1200 in rental income (which i could at today’s price), my investment is 200k less than what I divested at, the primary res is bigger and better and the rental is free. If things completely tank into Great Depression 2.0, then I got back in at .40 on the dollar on the primary and scrap the rental plans and hunker down, who cares at that point. There is also the very real fear of hyperinflation and double digit interest rates, I’ll be hedging against those. If they allow bankruptcy protection for primary residences, interest rates for homes will mimmic credit cards, prices will crash but payments wont.
It all goes to the theory that as soon as nobody wants to buy, it’s time.
