4S Ranch homes – Good time to buy?

[sdrealtor]

Aw SHucks…..It’s always a good time to buy real estate.

[NotCranky]

[quote=4sranch_buyer]I am more worried about prices going more than 8-15% down. However, considering I pay rent of $2000 per month, waiting another year is like spending $24000 on rental which can offset up to 5% fall in the prices.

I will definitely keep you guys posted about what happens eventually. Thanks for the info though![/quote]
If I understand you properly I think you have the wrong idea wrt to protecting your downside by not being a renter anymore.

Since you are paying primarily interest in the first year it doesn’t offset the price like that. Looking at it another way,if you rent and pay 24k at the end of the year you are out 24k. If you buy and spend that 24k in interest payments and the house drops 5% your “rent” money is gone and you are 5% upside down, minus what little principal was paid and the little amortization benefit you gained by that year of payments.

If you are paying cash it’s a different story, of course.

[NotCranky]

[quote=4sranch_buyer]I am more worried about prices going more than 8-15% down. However, considering I pay rent of $2000 per month, waiting another year is like spending $24000 on rental which can offset up to 5% fall in the prices.

I will definitely keep you guys posted about what happens eventually. Thanks for the info though![/quote]
If I understand you properly I think you have the wrong idea wrt to protecting your downside by not being a renter anymore.

Since you are paying primarily interest in the first year it doesn’t offset the price like that. Looking at it another way,if you rent and pay 24k at the end of the year you are out 24k. If you buy and spend that 24k in interest payments and the house drops 5% your “rent” money is gone and you are 5% upside down, minus what little principal was paid and the little amortization benefit you gained by that year of payments.

If you are paying cash it’s a different story, of course.

[NotCranky]

[quote=4sranch_buyer]I am more worried about prices going more than 8-15% down. However, considering I pay rent of $2000 per month, waiting another year is like spending $24000 on rental which can offset up to 5% fall in the prices.

I will definitely keep you guys posted about what happens eventually. Thanks for the info though![/quote]
If I understand you properly I think you have the wrong idea wrt to protecting your downside by not being a renter anymore.

Since you are paying primarily interest in the first year it doesn’t offset the price like that. Looking at it another way,if you rent and pay 24k at the end of the year you are out 24k. If you buy and spend that 24k in interest payments and the house drops 5% your “rent” money is gone and you are 5% upside down, minus what little principal was paid and the little amortization benefit you gained by that year of payments.

If you are paying cash it’s a different story, of course.

[NotCranky]

[quote=4sranch_buyer]I am more worried about prices going more than 8-15% down. However, considering I pay rent of $2000 per month, waiting another year is like spending $24000 on rental which can offset up to 5% fall in the prices.

I will definitely keep you guys posted about what happens eventually. Thanks for the info though![/quote]
If I understand you properly I think you have the wrong idea wrt to protecting your downside by not being a renter anymore.

Since you are paying primarily interest in the first year it doesn’t offset the price like that. Looking at it another way,if you rent and pay 24k at the end of the year you are out 24k. If you buy and spend that 24k in interest payments and the house drops 5% your “rent” money is gone and you are 5% upside down, minus what little principal was paid and the little amortization benefit you gained by that year of payments.

If you are paying cash it’s a different story, of course.

[NotCranky]

[quote=4sranch_buyer]I am more worried about prices going more than 8-15% down. However, considering I pay rent of $2000 per month, waiting another year is like spending $24000 on rental which can offset up to 5% fall in the prices.

I will definitely keep you guys posted about what happens eventually. Thanks for the info though![/quote]
If I understand you properly I think you have the wrong idea wrt to protecting your downside by not being a renter anymore.

Since you are paying primarily interest in the first year it doesn’t offset the price like that. Looking at it another way,if you rent and pay 24k at the end of the year you are out 24k. If you buy and spend that 24k in interest payments and the house drops 5% your “rent” money is gone and you are 5% upside down, minus what little principal was paid and the little amortization benefit you gained by that year of payments.

If you are paying cash it’s a different story, of course.

[propertysearchaddiction]

[quote=ybitz]don’t you wish you could get a crystal ball that shows you what the housing market will be like in 1 to 2 years? I’m in the market as well, but it makes me nervous to buy with such a large foreclosure looming in the background and talks of additional price falls. At the same time, I don’t want to wait years and years, but nor do I want to be a “sucker”. We piggs have it tough…we think too much! There are times when I think that if I were more blissfully ignorant to the market indicators, we’d probably be happy living in our new homes already.[/quote]

I agree. The more I know the less I feel like buying! I need to pick up a hobby, become ignorant again, and then maybe we can sit back and enjoy our new home.

[propertysearchaddiction]

[quote=ybitz]don’t you wish you could get a crystal ball that shows you what the housing market will be like in 1 to 2 years? I’m in the market as well, but it makes me nervous to buy with such a large foreclosure looming in the background and talks of additional price falls. At the same time, I don’t want to wait years and years, but nor do I want to be a “sucker”. We piggs have it tough…we think too much! There are times when I think that if I were more blissfully ignorant to the market indicators, we’d probably be happy living in our new homes already.[/quote]

I agree. The more I know the less I feel like buying! I need to pick up a hobby, become ignorant again, and then maybe we can sit back and enjoy our new home.

[propertysearchaddiction]

[quote=ybitz]don’t you wish you could get a crystal ball that shows you what the housing market will be like in 1 to 2 years? I’m in the market as well, but it makes me nervous to buy with such a large foreclosure looming in the background and talks of additional price falls. At the same time, I don’t want to wait years and years, but nor do I want to be a “sucker”. We piggs have it tough…we think too much! There are times when I think that if I were more blissfully ignorant to the market indicators, we’d probably be happy living in our new homes already.[/quote]

I agree. The more I know the less I feel like buying! I need to pick up a hobby, become ignorant again, and then maybe we can sit back and enjoy our new home.

[propertysearchaddiction]

[quote=ybitz]don’t you wish you could get a crystal ball that shows you what the housing market will be like in 1 to 2 years? I’m in the market as well, but it makes me nervous to buy with such a large foreclosure looming in the background and talks of additional price falls. At the same time, I don’t want to wait years and years, but nor do I want to be a “sucker”. We piggs have it tough…we think too much! There are times when I think that if I were more blissfully ignorant to the market indicators, we’d probably be happy living in our new homes already.[/quote]

I agree. The more I know the less I feel like buying! I need to pick up a hobby, become ignorant again, and then maybe we can sit back and enjoy our new home.

[propertysearchaddiction]

[quote=ybitz]don’t you wish you could get a crystal ball that shows you what the housing market will be like in 1 to 2 years? I’m in the market as well, but it makes me nervous to buy with such a large foreclosure looming in the background and talks of additional price falls. At the same time, I don’t want to wait years and years, but nor do I want to be a “sucker”. We piggs have it tough…we think too much! There are times when I think that if I were more blissfully ignorant to the market indicators, we’d probably be happy living in our new homes already.[/quote]

I agree. The more I know the less I feel like buying! I need to pick up a hobby, become ignorant again, and then maybe we can sit back and enjoy our new home.

[sdduuuude]

[quote=4sranch_buyer]… I pay rent of $2000 per month, waiting another year is like spending $24000 on rental which can offset up to 5% fall in the prices.[/quote]

Not quite the right way to think about it. You’ll pay interest on the loan (reduced due to tax deduction), and you will lose interest on your down payment, and you will have maintenance costs, and you will probably do some remodelling, relandscaping. Make sure you calc it right.

Tough decision. I’d wait at least until the Spring season is over to find a friendlier buying environment. If you wait 2 years, you won’t be disappointed price-wise, but you may go crazy wishing you had your own place.

[sdduuuude]

[quote=4sranch_buyer]… I pay rent of $2000 per month, waiting another year is like spending $24000 on rental which can offset up to 5% fall in the prices.[/quote]

Not quite the right way to think about it. You’ll pay interest on the loan (reduced due to tax deduction), and you will lose interest on your down payment, and you will have maintenance costs, and you will probably do some remodelling, relandscaping. Make sure you calc it right.

Tough decision. I’d wait at least until the Spring season is over to find a friendlier buying environment. If you wait 2 years, you won’t be disappointed price-wise, but you may go crazy wishing you had your own place.

[sdduuuude]

[quote=4sranch_buyer]… I pay rent of $2000 per month, waiting another year is like spending $24000 on rental which can offset up to 5% fall in the prices.[/quote]

Not quite the right way to think about it. You’ll pay interest on the loan (reduced due to tax deduction), and you will lose interest on your down payment, and you will have maintenance costs, and you will probably do some remodelling, relandscaping. Make sure you calc it right.

Tough decision. I’d wait at least until the Spring season is over to find a friendlier buying environment. If you wait 2 years, you won’t be disappointed price-wise, but you may go crazy wishing you had your own place.

[sdduuuude]

[quote=4sranch_buyer]… I pay rent of $2000 per month, waiting another year is like spending $24000 on rental which can offset up to 5% fall in the prices.[/quote]

Not quite the right way to think about it. You’ll pay interest on the loan (reduced due to tax deduction), and you will lose interest on your down payment, and you will have maintenance costs, and you will probably do some remodelling, relandscaping. Make sure you calc it right.

Tough decision. I’d wait at least until the Spring season is over to find a friendlier buying environment. If you wait 2 years, you won’t be disappointed price-wise, but you may go crazy wishing you had your own place.

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