Should I wait a year or buy now?

[mixxalot]

I agree with the other posters- wait at least another year. That is what I am doing. I was layed off twice in past 5 years in San Diego. Now that I am consulting I make a lot more in less time. However, I still want at least a year of cash reserves in the bank and to see how steady the work is before I take a plunge and buy.

At first, I considered Point Loma, Ocean Beach, and Pacific Beach. Then gas prices skyrocketed overnight.

Then I considered places like Poway and Rancho Penasquitos. Then the wildfires struck twice in a row in these areas. No way for buying a home in these areas to get burned down.

So now, I am looking in Carlsbad, Sorrento Valley or Carmel Valley as these are where 99% of the high tech jobs are and with gas rapidly approaching $7-9 a gallon, I really don’t want a long commute and money wasted on gas.

I hope to achieve my goal of 2 years cash reserves and then have monies for down payment 10-20% in few years.

[(former)FormerSanDiegan]

I won’t be putting 20% down either, that is for people who are established in their careers and have been able to save. I’m not there yet. So, I’ll be going FHA and taking advantage of down payment assistance. The builders are pushing that right now.

I agree that FHA or similar low-down payment loans (e.g. 3-5%) are good for “first-time” buyers or those starting over. However, having a cash cushion is vital. Probably the worst thing that can happen for a first time buyer in the next couple of years would be to get a great deal on a property, then run into a short-term financial issue (e.g. changing jobs, medical issue, etc) and then lose your house just before appreciation rears its head again in 2010 or 2011 or later. All because you didn’t save up at least a couple months worth of emergency cash.

[(former)FormerSanDiegan]

I won’t be putting 20% down either, that is for people who are established in their careers and have been able to save. I’m not there yet. So, I’ll be going FHA and taking advantage of down payment assistance. The builders are pushing that right now.

I agree that FHA or similar low-down payment loans (e.g. 3-5%) are good for “first-time” buyers or those starting over. However, having a cash cushion is vital. Probably the worst thing that can happen for a first time buyer in the next couple of years would be to get a great deal on a property, then run into a short-term financial issue (e.g. changing jobs, medical issue, etc) and then lose your house just before appreciation rears its head again in 2010 or 2011 or later. All because you didn’t save up at least a couple months worth of emergency cash.

[(former)FormerSanDiegan]

I won’t be putting 20% down either, that is for people who are established in their careers and have been able to save. I’m not there yet. So, I’ll be going FHA and taking advantage of down payment assistance. The builders are pushing that right now.

I agree that FHA or similar low-down payment loans (e.g. 3-5%) are good for “first-time” buyers or those starting over. However, having a cash cushion is vital. Probably the worst thing that can happen for a first time buyer in the next couple of years would be to get a great deal on a property, then run into a short-term financial issue (e.g. changing jobs, medical issue, etc) and then lose your house just before appreciation rears its head again in 2010 or 2011 or later. All because you didn’t save up at least a couple months worth of emergency cash.

[(former)FormerSanDiegan]

I won’t be putting 20% down either, that is for people who are established in their careers and have been able to save. I’m not there yet. So, I’ll be going FHA and taking advantage of down payment assistance. The builders are pushing that right now.

I agree that FHA or similar low-down payment loans (e.g. 3-5%) are good for “first-time” buyers or those starting over. However, having a cash cushion is vital. Probably the worst thing that can happen for a first time buyer in the next couple of years would be to get a great deal on a property, then run into a short-term financial issue (e.g. changing jobs, medical issue, etc) and then lose your house just before appreciation rears its head again in 2010 or 2011 or later. All because you didn’t save up at least a couple months worth of emergency cash.

[(former)FormerSanDiegan]

I won’t be putting 20% down either, that is for people who are established in their careers and have been able to save. I’m not there yet. So, I’ll be going FHA and taking advantage of down payment assistance. The builders are pushing that right now.

I agree that FHA or similar low-down payment loans (e.g. 3-5%) are good for “first-time” buyers or those starting over. However, having a cash cushion is vital. Probably the worst thing that can happen for a first time buyer in the next couple of years would be to get a great deal on a property, then run into a short-term financial issue (e.g. changing jobs, medical issue, etc) and then lose your house just before appreciation rears its head again in 2010 or 2011 or later. All because you didn’t save up at least a couple months worth of emergency cash.

[JWM in SD]

I agree with mixxalot. Marion, you are not really in a position to buy right now if you don’t have reserves and a down payment. Especially considering that you’ve just finished a degree, you are especially vulnerable in the job market as what I like to call jr cannon fodder for layoffs that are going to become more common over the next few years. Just wait, see what happens.

Mixxalot, what kind of consulting do you do? I also have been laid off more than once in the past 6 years. Twice in Chicago, and once here in SD.

[JWM in SD]

I agree with mixxalot. Marion, you are not really in a position to buy right now if you don’t have reserves and a down payment. Especially considering that you’ve just finished a degree, you are especially vulnerable in the job market as what I like to call jr cannon fodder for layoffs that are going to become more common over the next few years. Just wait, see what happens.

Mixxalot, what kind of consulting do you do? I also have been laid off more than once in the past 6 years. Twice in Chicago, and once here in SD.

[JWM in SD]

I agree with mixxalot. Marion, you are not really in a position to buy right now if you don’t have reserves and a down payment. Especially considering that you’ve just finished a degree, you are especially vulnerable in the job market as what I like to call jr cannon fodder for layoffs that are going to become more common over the next few years. Just wait, see what happens.

Mixxalot, what kind of consulting do you do? I also have been laid off more than once in the past 6 years. Twice in Chicago, and once here in SD.

[JWM in SD]

I agree with mixxalot. Marion, you are not really in a position to buy right now if you don’t have reserves and a down payment. Especially considering that you’ve just finished a degree, you are especially vulnerable in the job market as what I like to call jr cannon fodder for layoffs that are going to become more common over the next few years. Just wait, see what happens.

Mixxalot, what kind of consulting do you do? I also have been laid off more than once in the past 6 years. Twice in Chicago, and once here in SD.

[JWM in SD]

I agree with mixxalot. Marion, you are not really in a position to buy right now if you don’t have reserves and a down payment. Especially considering that you’ve just finished a degree, you are especially vulnerable in the job market as what I like to call jr cannon fodder for layoffs that are going to become more common over the next few years. Just wait, see what happens.

Mixxalot, what kind of consulting do you do? I also have been laid off more than once in the past 6 years. Twice in Chicago, and once here in SD.

[HereWeGo]

I think real estate starts to become interesting maybe 8-12 months away, but don’t expect any near term appreciation once you buy. I’m looking for a collapse in rents. If that happens, I’ll shift from extremely bearish to mildly bearish or even neutral.

[HereWeGo]

I think real estate starts to become interesting maybe 8-12 months away, but don’t expect any near term appreciation once you buy. I’m looking for a collapse in rents. If that happens, I’ll shift from extremely bearish to mildly bearish or even neutral.

[HereWeGo]

I think real estate starts to become interesting maybe 8-12 months away, but don’t expect any near term appreciation once you buy. I’m looking for a collapse in rents. If that happens, I’ll shift from extremely bearish to mildly bearish or even neutral.

[HereWeGo]

I think real estate starts to become interesting maybe 8-12 months away, but don’t expect any near term appreciation once you buy. I’m looking for a collapse in rents. If that happens, I’ll shift from extremely bearish to mildly bearish or even neutral.

[Author]

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