These are all rationalizations for buying an asset that is depreciating. It would at least be a lower risk decision if the purchase were not heavily leveraged.
Why buy now? What’s the hurry to take such a risk? RE doesnt all of the sudden shoot up on good news like the stock market. Wait for unemployment to stop rising and foreclosures to stop dominating the market. At least those would be bullish indicators for the RE market to stabilize. Time is your friend here, not the enemy.
We’re in uncharted territory for this economy. Huge bank failures, recession and growing unemployment. And now it looks as though the whole world is headed into a recession as well.
I would advice anyone considering buying a highly leveraged, depreciating asset in this environment to be extremely careful….unless you have lots of availble cash to fall back on should things get considerably worse.
