Margin for error?

[Bob]

[quote=briansd1]A bottom is NOT a time when buyers bid against each other.[/quote]

You know, thats the best statement I’ve read yet. And its a very important point that the Feds don’t understand…at least with respect to the Southern California market. While some areas of the country, ie, Arizona, Michigan, South Florida, probably could use government assistance to get property moving, here in Southern California there wasn’t a need for such assistance. As I’ve stated in another thread, even when supply far outpaced demand in TV, the good properties sold, often times only days after being listed. The reason ? Prices are once again reasonable.

[scaredyclassic]

2.4%

[scaredyclassic]

2.4%

[scaredyclassic]

2.4%

[scaredyclassic]

2.4%

[scaredyclassic]

2.4%

[CA renter]

It’s a tricky question because we are more vulnerable now with respect to job and wage instability than any time in most of our lifetimes.

When buying a house today, you should seriously consider the **strong** possibility of lay-offs and wage/benefit reductions, even in “safe” government jobs that are now seeing many layoffs and wage/benefit reductions (much more to come, BTW).

If you don’t have a cushion to provide for at least one year of un/under-employment, there’s a strong possibility you’ll have to sell or move out of the house.

Let’s not forget the additional savings required to build up all those trashed retirement funds. That should be separate from the one-year’s worth of “rainy day” savings.

If you put 20% down on a house (and most of us have to work long and hard to get that saved up), are you willing to lose 100% of your down payment? It’s easy to say, “I don’t care if it goes down another 15-20%,” but is that really the truth, if your back was against the wall?

So many people were devastated by 30-50% losses in their portfolios, but claim to have no problem with 100% losses on a house. Remember that the various selling and closing costs alone will wipe out 5-10% of your equity from day one.

Personally, I don’t want to lose a single cent on a purchase, but if an “acceptable loss” had to be quantified, the total losses would have to be no more than equivalent rent for the same type of house and duration of occupancy.

[CA renter]

It’s a tricky question because we are more vulnerable now with respect to job and wage instability than any time in most of our lifetimes.

When buying a house today, you should seriously consider the **strong** possibility of lay-offs and wage/benefit reductions, even in “safe” government jobs that are now seeing many layoffs and wage/benefit reductions (much more to come, BTW).

If you don’t have a cushion to provide for at least one year of un/under-employment, there’s a strong possibility you’ll have to sell or move out of the house.

Let’s not forget the additional savings required to build up all those trashed retirement funds. That should be separate from the one-year’s worth of “rainy day” savings.

If you put 20% down on a house (and most of us have to work long and hard to get that saved up), are you willing to lose 100% of your down payment? It’s easy to say, “I don’t care if it goes down another 15-20%,” but is that really the truth, if your back was against the wall?

So many people were devastated by 30-50% losses in their portfolios, but claim to have no problem with 100% losses on a house. Remember that the various selling and closing costs alone will wipe out 5-10% of your equity from day one.

Personally, I don’t want to lose a single cent on a purchase, but if an “acceptable loss” had to be quantified, the total losses would have to be no more than equivalent rent for the same type of house and duration of occupancy.

[CA renter]

It’s a tricky question because we are more vulnerable now with respect to job and wage instability than any time in most of our lifetimes.

When buying a house today, you should seriously consider the **strong** possibility of lay-offs and wage/benefit reductions, even in “safe” government jobs that are now seeing many layoffs and wage/benefit reductions (much more to come, BTW).

If you don’t have a cushion to provide for at least one year of un/under-employment, there’s a strong possibility you’ll have to sell or move out of the house.

Let’s not forget the additional savings required to build up all those trashed retirement funds. That should be separate from the one-year’s worth of “rainy day” savings.

If you put 20% down on a house (and most of us have to work long and hard to get that saved up), are you willing to lose 100% of your down payment? It’s easy to say, “I don’t care if it goes down another 15-20%,” but is that really the truth, if your back was against the wall?

So many people were devastated by 30-50% losses in their portfolios, but claim to have no problem with 100% losses on a house. Remember that the various selling and closing costs alone will wipe out 5-10% of your equity from day one.

Personally, I don’t want to lose a single cent on a purchase, but if an “acceptable loss” had to be quantified, the total losses would have to be no more than equivalent rent for the same type of house and duration of occupancy.

[CA renter]

It’s a tricky question because we are more vulnerable now with respect to job and wage instability than any time in most of our lifetimes.

When buying a house today, you should seriously consider the **strong** possibility of lay-offs and wage/benefit reductions, even in “safe” government jobs that are now seeing many layoffs and wage/benefit reductions (much more to come, BTW).

If you don’t have a cushion to provide for at least one year of un/under-employment, there’s a strong possibility you’ll have to sell or move out of the house.

Let’s not forget the additional savings required to build up all those trashed retirement funds. That should be separate from the one-year’s worth of “rainy day” savings.

If you put 20% down on a house (and most of us have to work long and hard to get that saved up), are you willing to lose 100% of your down payment? It’s easy to say, “I don’t care if it goes down another 15-20%,” but is that really the truth, if your back was against the wall?

So many people were devastated by 30-50% losses in their portfolios, but claim to have no problem with 100% losses on a house. Remember that the various selling and closing costs alone will wipe out 5-10% of your equity from day one.

Personally, I don’t want to lose a single cent on a purchase, but if an “acceptable loss” had to be quantified, the total losses would have to be no more than equivalent rent for the same type of house and duration of occupancy.

[CA renter]

It’s a tricky question because we are more vulnerable now with respect to job and wage instability than any time in most of our lifetimes.

When buying a house today, you should seriously consider the **strong** possibility of lay-offs and wage/benefit reductions, even in “safe” government jobs that are now seeing many layoffs and wage/benefit reductions (much more to come, BTW).

If you don’t have a cushion to provide for at least one year of un/under-employment, there’s a strong possibility you’ll have to sell or move out of the house.

Let’s not forget the additional savings required to build up all those trashed retirement funds. That should be separate from the one-year’s worth of “rainy day” savings.

If you put 20% down on a house (and most of us have to work long and hard to get that saved up), are you willing to lose 100% of your down payment? It’s easy to say, “I don’t care if it goes down another 15-20%,” but is that really the truth, if your back was against the wall?

So many people were devastated by 30-50% losses in their portfolios, but claim to have no problem with 100% losses on a house. Remember that the various selling and closing costs alone will wipe out 5-10% of your equity from day one.

Personally, I don’t want to lose a single cent on a purchase, but if an “acceptable loss” had to be quantified, the total losses would have to be no more than equivalent rent for the same type of house and duration of occupancy.

[5yearwaiter]

[quote=CA renter]Personally, I don’t want to lose a single cent on a purchase, but if an “acceptable loss” had to be quantified, the total losses would have to be no more than equivalent rent for the same type of house and duration of occupancy.[/quote]

CA renter – you are absolutely correct and this is what the correct understanding our fellow purchasers need to have at the time of house purchasing these days. Honestly this time home buying is more careful than the last time peak price home buyers. Most of them those bought past years (2004- 2006) may not be losing a dime at all due to various attractive baliout vs NODs. But now one has to be prepared to lose minimum 20% loss from their pocket for sure and the future of entire US economy is kid of foggy – it never ever get back to the stream line – though it gets back, not housing surge at all. Keep in mind first the forthcoming era is to increase taxes and interest rates – how long the housing will surge when high interest rates exist? I do agree rent vs home mortgage should be somewhat equivalent level instead losing saved money 20% and further downthe road live life with stress.

[5yearwaiter]

[quote=CA renter]Personally, I don’t want to lose a single cent on a purchase, but if an “acceptable loss” had to be quantified, the total losses would have to be no more than equivalent rent for the same type of house and duration of occupancy.[/quote]

CA renter – you are absolutely correct and this is what the correct understanding our fellow purchasers need to have at the time of house purchasing these days. Honestly this time home buying is more careful than the last time peak price home buyers. Most of them those bought past years (2004- 2006) may not be losing a dime at all due to various attractive baliout vs NODs. But now one has to be prepared to lose minimum 20% loss from their pocket for sure and the future of entire US economy is kid of foggy – it never ever get back to the stream line – though it gets back, not housing surge at all. Keep in mind first the forthcoming era is to increase taxes and interest rates – how long the housing will surge when high interest rates exist? I do agree rent vs home mortgage should be somewhat equivalent level instead losing saved money 20% and further downthe road live life with stress.

[5yearwaiter]

[quote=CA renter]Personally, I don’t want to lose a single cent on a purchase, but if an “acceptable loss” had to be quantified, the total losses would have to be no more than equivalent rent for the same type of house and duration of occupancy.[/quote]

CA renter – you are absolutely correct and this is what the correct understanding our fellow purchasers need to have at the time of house purchasing these days. Honestly this time home buying is more careful than the last time peak price home buyers. Most of them those bought past years (2004- 2006) may not be losing a dime at all due to various attractive baliout vs NODs. But now one has to be prepared to lose minimum 20% loss from their pocket for sure and the future of entire US economy is kid of foggy – it never ever get back to the stream line – though it gets back, not housing surge at all. Keep in mind first the forthcoming era is to increase taxes and interest rates – how long the housing will surge when high interest rates exist? I do agree rent vs home mortgage should be somewhat equivalent level instead losing saved money 20% and further downthe road live life with stress.

[5yearwaiter]

[quote=CA renter]Personally, I don’t want to lose a single cent on a purchase, but if an “acceptable loss” had to be quantified, the total losses would have to be no more than equivalent rent for the same type of house and duration of occupancy.[/quote]

CA renter – you are absolutely correct and this is what the correct understanding our fellow purchasers need to have at the time of house purchasing these days. Honestly this time home buying is more careful than the last time peak price home buyers. Most of them those bought past years (2004- 2006) may not be losing a dime at all due to various attractive baliout vs NODs. But now one has to be prepared to lose minimum 20% loss from their pocket for sure and the future of entire US economy is kid of foggy – it never ever get back to the stream line – though it gets back, not housing surge at all. Keep in mind first the forthcoming era is to increase taxes and interest rates – how long the housing will surge when high interest rates exist? I do agree rent vs home mortgage should be somewhat equivalent level instead losing saved money 20% and further downthe road live life with stress.

[Author]

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