Scaredycat, I agree with most of what you said but when I do that math now, it’s cheaper for me to buy than rent. Even though I’ve been a real estate bear for over 5 years, I’m going to seriously start house hunting in Temecula this fall and I’ll probably once again be a home debtor by the end of 2009. I don’t have any delusions about home ownership – it just has gotten to the point where it pencils out for me to buy. I’ve owned two homes in the past but currently I’m a renter. I’m going to wait for the spring/summer buying frenzy to peter out then I’ll strike. I don’t really care if I ever pay off my mortgage or not – although I certainly hope I live long enough to pay it off! I just want to live in a place I like at a competitive cost that I can afford.
One thing I’ve been noticing though is that the new home builders (the few that are still building) are charging approximately $100,000 more than the banks for the same types of houses. I don’t think the builder’s warranty and the $10,000 tax incentive is worth $100,000! What a rip. Plus, when you buy new, you’ve got to put in the yard, the pool (if you want one), the window treatments, etc. Buying a foreclosure or short sale is definitely the way I’m going to go. You just have to get a good inspector and check the place out during the inspection period.
Another conclusion I’ve come to is that, yes, the real estate market is rigged but I’m not going to change that – I just have to work within the system that exists and make the most of it. Our money is basically worthless anyway so everything else in our economy is really just a matter of playing the game. I don’t feel that I can outsmart the gubment or the power brokers.
