Renters are foolish??? “5 lousy excuses not to buy a home” . . . per MSN

[schizo2buyORnot]

MSN website had this link on touting “5 lousy excuses not to buy a home.” Truth or BS?

http://realestate.msn.com/selling/Article2.aspx?cp-documentid=4706111&GT1=9323

[temeculaguy]

I read the article and it seemed to target people that have never or will never buy a home, which doesn’t depict the average piggintonian. Most of us who are on the sidelnes (either by circustance or strategy) understand the merits of homeowneship, we are just trying to time the market and predict futuere trends. The article is quite pedestrian, bringing up such elementary concepts such as the fact that owneship has tax benefits and rent increase protection, funny no mention of toxic mortgages or record foreclosures. I think my 13 year old would have found that article beneath him intellectually.

[bigmoneysalsa]

Technically four out of the five reasons actually are lousy. Of course, the one that is not – Excuse No. 2: “Renting is a good deal” is kind of difficult to ignore.

[citydweller]

What a silly article. None of it makes sense when you can rent for 1/2 of what it would cost to buy. Why not put the extra savings into the bank so you’ll have a decent down payment when housing prices get back to realistic numbers.

[FutureSDguy]

I read it a piece of real estate propaganda, pure and simple.

[NateK]

Ohhhh my GOD!!! That article was pure crap…Actually I take that back. Colleen Debaise is pure crap. Why not just add reason #6: “I don’t have enough for a down payment and I only earn 30K/year.”

And Colleen’s counter: It’s called 100% Financing, and Stated Income Loans will magically qualify you to purchase that Million Dollar home that you always wanted so that you can live the American Dream right now. GOD BLESS AMERICA!!!

[kev374]

These arguments hold good in a balanced market (i.e. when owning and renting are similar costs), not in a completely irrational market that we’re currently in. If anyone buys now they are going to have a MASSIVE capital loss over the next couple of years and pretty much guarantee their financial ruin.

[Anonymous]

Well, this comes from a principal at PIMCO…

http://www.pimco.com/LeftNav/Global+Markets/Global+Credit+Perspectives/2007/U.S.+Credit+Perspectives-+5-2007.htm

I think I like his analysis better.

[masayako]

Checkout who are the sponsors of the articles:

RealtyTrac
MOVE.com
Wells Fargo Mortgage

“NICE TRY. WHAT A LOSER.”

“Conclusion:

We like real estate. If you’ve got enough for a down payment and have a stable job, and you’re in an area you’ll be comfortable living in for years to come, we can’t figure out why you don’t.”

>>> Colleen, if you guys can’t figure out why I don’t buy. Let me explain it to you:

If you go to a car dealership and shop for a car which normally cost $25,000 (For example, a brand new 2007 Toyota Camry). Suddenly, today when you visit the dealership, you find out that the same 2007 Camry now cost $75,000 – $100,000 because a ton of speculators jumped in and drive up the demand!!!! Will you still buy the car regardless how much it costs?

Well, call me stupid, I will save my cash and wait for the price to drop. By the way, this is not “afraid of commitment”, this is called “common sense”.

Masayako

[Diego Mamani]

A few days ago MSN published a bearish article titled “reasons why buying a house is not that great,” or “myths about buying a house.” What I think happened is that the RE industry called to complain and demanded that a more bullish article be published for balance, and then MSN complied. I’ve seen this happen a few times at MSN: a bearish article on RE, followed by a bullish one a few days later.

[Chris Scoreboard Johnston]

Chris Johnston

I look forward to being financially ruined by my recent home purchase, as now I have learned that is guaranteed.

Kev, I am curious what investments you have and what you see taking place in other asset classes. People with views on things that are that emotional and extreme are typically what people like me look for to “fade.” (This is trading talk for doing the opposite)

Will the value of the ranch I just bought decline?, undoubtedly. Will it ruin me financially?, absolutely not. That is one of the most ridiculous statements I have read in this blog.

[avidsaver]

My favorite part is this:

Conclusion:

We like real estate. If you’ve got enough for a down payment and have a stable job, and you’re in an area you’ll be comfortable living in for years to come, we can’t figure out why you don’t.

Because the fundamentals don’t make sense. DUH! (I had to respond at the level that the writer would understand.)

I have to agree with this much of the article. Four of the reasons are indeed lousy, but #2 is one good enough reason for me to wait out the storm.

[citydweller]

Adding to Masayako’s analogy, imagine that you could rent that 2007 Camry for $300 per month.

[kev374]

That is one of the most ridiculous statements I have read in this blog.

Er..what is ridiculous? Most, and I mean almost all, people cannot recover from a $700,000 commitment that declines 20 or 30% in value, that’s being upside down $140,000-$200,000, especially when almost all first time buyers are going with zero down or even worse negative amortization.

Just because you claim to have the capacity to withstand several hundred thousands in capital losses without going under does not make a general case, kapicshe? Think about the broader context next time you counter instead of imagining that the world is only about yourself!

[sdrealtor]

Chris,
I guess you arent anybody then.

sdr

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