[quote=Looking2buysoon]Across the street they have some nice townhomes that are selling between 300 and 400k. I wish I could afford one. I have been watching them for over a year and the prices do not go down.
I dont know how the heck people can buy these places. Thanks to all who shared some advice on here.[/quote]
Look at it this way. There are three types of people who bought/buy those townhomes – 1) those who overextended themselves and are likely to end up in foreclosure; 2) those who can afford it but for whom a relatively common occurance (job loss, major plumbing issue, accident, whatever) would be financially devastating, and may very well end up in foreclosure; and 3) those who can easily afford it and could handle a catastrophe or two. Maybe they qualified to buy a $500k home but wisely chose a $350k one instead.
Which are you?
Personally, I wouldn’t even remotely consider buying any property unless it had decent positive cash flow as a rental (a few hundred at least). If that means putting a lot more down, and I don’t have that much to put down, then in my mind I can’t afford that property. I should be able to live under a bridge and eat at a shelter and still have someone else help finance my retirement.
