Credit squeeze: The problem with down payments

[Anonymous]

STPiermj

If you want to buy a place buy a place, but by renting you are not pissing away money. The current $500K places in Oceanside rent for about $2,000 a month. The interest, taxes, and insurance on a $500K loan is over $5,000 a month. You will get deductions but are you sure you are going to get over $3,000 a month. In fact in this situation buying is the biggest way to piss away your money. Not only do you pay more you are stuck in a depreciating asset. Who would you rather pay your money to the government who pays you military benefit or as interest to some bank that is now more than likely owned by Dubai?

You are right there is a lot of action in the middle tier. However, have you checked the pending foreclosures in those neighborhoods. I was in the same situation in LV. There was a foreclosure that got multiple offers, I said I will wait cause there are ten pending foreclosures within a few blocks. I think come the fall the bidders will drop off like they always do, but more supply.

[stpiermj]

LV, I think you missed the part about the particular type of property I was buying and the level of luxury that will come with the purchase relative to the rest of the market. I clearly believe the market will see more foreclosures and I expect my home to lower in value before the bottom is reached. I just don’t expect to be able to buy this type of property at this price for many years to come. I would like think the market will continue to crash, but I just don’t believe it is going down a lot more. My monthly will be $3828.02. This includes P&I, Taxes, and Insurance. Add another 125 for HOA. After Tax price per month will be very close to a comparable homes rental price (this is what tells me we are close to bottom). When I look at what I’m renting now, and then how much more I must pay to live in the home I really really love, I don’t see the issues you mention as being an issue. There clearly is a high likelihood of severe thunder storms ahead for the economy and the housing market. I figure I am going to get the best darn house I can find for shelter. Good luck renting. I think if you feel you should wait, then do that. You know your needs and I know mine. I don’t mean to sound like everyone should buy now. If anything, I would recommend waiting for confirmation of a bottom. Just realize that you may not find the perfect home at the perfect price.

[stpiermj]

LV, I think you missed the part about the particular type of property I was buying and the level of luxury that will come with the purchase relative to the rest of the market. I clearly believe the market will see more foreclosures and I expect my home to lower in value before the bottom is reached. I just don’t expect to be able to buy this type of property at this price for many years to come. I would like think the market will continue to crash, but I just don’t believe it is going down a lot more. My monthly will be $3828.02. This includes P&I, Taxes, and Insurance. Add another 125 for HOA. After Tax price per month will be very close to a comparable homes rental price (this is what tells me we are close to bottom). When I look at what I’m renting now, and then how much more I must pay to live in the home I really really love, I don’t see the issues you mention as being an issue. There clearly is a high likelihood of severe thunder storms ahead for the economy and the housing market. I figure I am going to get the best darn house I can find for shelter. Good luck renting. I think if you feel you should wait, then do that. You know your needs and I know mine. I don’t mean to sound like everyone should buy now. If anything, I would recommend waiting for confirmation of a bottom. Just realize that you may not find the perfect home at the perfect price.

[stpiermj]

LV, I think you missed the part about the particular type of property I was buying and the level of luxury that will come with the purchase relative to the rest of the market. I clearly believe the market will see more foreclosures and I expect my home to lower in value before the bottom is reached. I just don’t expect to be able to buy this type of property at this price for many years to come. I would like think the market will continue to crash, but I just don’t believe it is going down a lot more. My monthly will be $3828.02. This includes P&I, Taxes, and Insurance. Add another 125 for HOA. After Tax price per month will be very close to a comparable homes rental price (this is what tells me we are close to bottom). When I look at what I’m renting now, and then how much more I must pay to live in the home I really really love, I don’t see the issues you mention as being an issue. There clearly is a high likelihood of severe thunder storms ahead for the economy and the housing market. I figure I am going to get the best darn house I can find for shelter. Good luck renting. I think if you feel you should wait, then do that. You know your needs and I know mine. I don’t mean to sound like everyone should buy now. If anything, I would recommend waiting for confirmation of a bottom. Just realize that you may not find the perfect home at the perfect price.

[stpiermj]

LV, I think you missed the part about the particular type of property I was buying and the level of luxury that will come with the purchase relative to the rest of the market. I clearly believe the market will see more foreclosures and I expect my home to lower in value before the bottom is reached. I just don’t expect to be able to buy this type of property at this price for many years to come. I would like think the market will continue to crash, but I just don’t believe it is going down a lot more. My monthly will be $3828.02. This includes P&I, Taxes, and Insurance. Add another 125 for HOA. After Tax price per month will be very close to a comparable homes rental price (this is what tells me we are close to bottom). When I look at what I’m renting now, and then how much more I must pay to live in the home I really really love, I don’t see the issues you mention as being an issue. There clearly is a high likelihood of severe thunder storms ahead for the economy and the housing market. I figure I am going to get the best darn house I can find for shelter. Good luck renting. I think if you feel you should wait, then do that. You know your needs and I know mine. I don’t mean to sound like everyone should buy now. If anything, I would recommend waiting for confirmation of a bottom. Just realize that you may not find the perfect home at the perfect price.

[stpiermj]

LV, I think you missed the part about the particular type of property I was buying and the level of luxury that will come with the purchase relative to the rest of the market. I clearly believe the market will see more foreclosures and I expect my home to lower in value before the bottom is reached. I just don’t expect to be able to buy this type of property at this price for many years to come. I would like think the market will continue to crash, but I just don’t believe it is going down a lot more. My monthly will be $3828.02. This includes P&I, Taxes, and Insurance. Add another 125 for HOA. After Tax price per month will be very close to a comparable homes rental price (this is what tells me we are close to bottom). When I look at what I’m renting now, and then how much more I must pay to live in the home I really really love, I don’t see the issues you mention as being an issue. There clearly is a high likelihood of severe thunder storms ahead for the economy and the housing market. I figure I am going to get the best darn house I can find for shelter. Good luck renting. I think if you feel you should wait, then do that. You know your needs and I know mine. I don’t mean to sound like everyone should buy now. If anything, I would recommend waiting for confirmation of a bottom. Just realize that you may not find the perfect home at the perfect price.

[Author]

Posts