I bought my first house in 1994. Does anyone want to know how I did it, my ingenious method? Dumb luck!!
PS wrote:
“This is the method I will use, and I may miss the bottom by a month or two, but with real estate so slow moving, I would miss out at most on 1% or 2% of price.”
Based on the very slow rate of appreciation from 1994 – ~1997, I would be happy to be within a year of the bottom. I do not believe things will shift that dramatically, that quickly. The appreciation in the bottom of the cycle will be very small, gradually picking up steam. If we just get close, we will be in good shape : )
I think sdrealtor is right on target, buy at a smart time, live in it and enjoy life.
Right on, sdrealtor and VCJim. Isn’t forgetting that one’s home is just that- one’s home- and not a ticket to instant wealth and fame what’s gotten so many people in trouble?
I tend to agree with the latest comments, but one should at least pay attention, research what they are purchasing, compare the financial trade-offs of renting versus buying to avoid major pain.
BTW, I purchased my first house in Clairemont in 1996. Why ?
1. Because of housing cycles (no, but I was aware of them).
2. Because the ratio of local incomes to housing prices was near a local minimum (No, But I was aware of this)
3. Because I was clairvoyant. No.
4. Because it was only about 1 car payment ($200 at that time) more than renting a townhome, and I could put 5% down, and I could afford a 30-year mortgage at about 30% of my income. Yes.
People should at least do calculation number 4 when buying their first home or when deciding when to move back into an ownership position versus renting.
