Thinking about jumping in….

[CA renter]

sdr,

It’s not so much fear as it is being alert and knowing what’s going on all around you (including global issues).

For some areas, much of the risk has been eliminated over the past few years (like O’side, Escondido, Vista, etc.). In other areas, the risk is almost as high as it was during the peak.

Some of the “safest” jobs are in govt, and I can assure you the axe is being honed right now. Can’t imagine the private sector is any better off. We still have a lot to work through in the financial world, and there are greater negative demographic and wage pressures that we didn’t have during the last few RE cycles.

[capeman]

There’s no need to sit in a dark corner in fear anymore. We all know that in the short-mid term houses are greatly depreciating assets.

If you find your dream home and can afford it and almost nothing will make you lose it in the next 10-15 years then you should seriously consider it. That goes for anyone who is sure that they are totally fine and unfazed financially from any of the following possibilities and puts at least 20% down:

1) If you are married you know you won’t get divorced in the next 10-15 years or if you will then you can make it through the divorce without liquidating the house.
2) You will have a job that allows you to stay in the house or you don’t need a job at all to make the payments.
3) Your career won’t force you to relocate in the next 10-15 years or you have the cash (Cash not investement cashout, see #5) or company benefit that will allow you to get out from under the house.
4) You are comfortable in the fact that you got a nice low interest rate but will be fine with comps getting heavily trounced with the inevitable rate increases at some point in the not-so-distant future. (As long as you stay in the house for 10-15 years you will likely weather the loss in equity).
5) You know you will make out fine in a deep recession or even depression and the likely resulting losses in all asset classes you invest in. You won’t need to depend on these assets to make payments on the house in case of job loss.

These are all very realistic possibilities in the current economic environment. If you know none of these things will affect your homeownership and find your dream home then there is no reason not to jump in. No fear involved but instead a realistic approach to buying into that asset class in the current heavily negative economic environment that even the “experts” don’t know the outcome of.

cheers

[capeman]

There’s no need to sit in a dark corner in fear anymore. We all know that in the short-mid term houses are greatly depreciating assets.

If you find your dream home and can afford it and almost nothing will make you lose it in the next 10-15 years then you should seriously consider it. That goes for anyone who is sure that they are totally fine and unfazed financially from any of the following possibilities and puts at least 20% down:

1) If you are married you know you won’t get divorced in the next 10-15 years or if you will then you can make it through the divorce without liquidating the house.
2) You will have a job that allows you to stay in the house or you don’t need a job at all to make the payments.
3) Your career won’t force you to relocate in the next 10-15 years or you have the cash (Cash not investement cashout, see #5) or company benefit that will allow you to get out from under the house.
4) You are comfortable in the fact that you got a nice low interest rate but will be fine with comps getting heavily trounced with the inevitable rate increases at some point in the not-so-distant future. (As long as you stay in the house for 10-15 years you will likely weather the loss in equity).
5) You know you will make out fine in a deep recession or even depression and the likely resulting losses in all asset classes you invest in. You won’t need to depend on these assets to make payments on the house in case of job loss.

These are all very realistic possibilities in the current economic environment. If you know none of these things will affect your homeownership and find your dream home then there is no reason not to jump in. No fear involved but instead a realistic approach to buying into that asset class in the current heavily negative economic environment that even the “experts” don’t know the outcome of.

cheers

[capeman]

There’s no need to sit in a dark corner in fear anymore. We all know that in the short-mid term houses are greatly depreciating assets.

If you find your dream home and can afford it and almost nothing will make you lose it in the next 10-15 years then you should seriously consider it. That goes for anyone who is sure that they are totally fine and unfazed financially from any of the following possibilities and puts at least 20% down:

1) If you are married you know you won’t get divorced in the next 10-15 years or if you will then you can make it through the divorce without liquidating the house.
2) You will have a job that allows you to stay in the house or you don’t need a job at all to make the payments.
3) Your career won’t force you to relocate in the next 10-15 years or you have the cash (Cash not investement cashout, see #5) or company benefit that will allow you to get out from under the house.
4) You are comfortable in the fact that you got a nice low interest rate but will be fine with comps getting heavily trounced with the inevitable rate increases at some point in the not-so-distant future. (As long as you stay in the house for 10-15 years you will likely weather the loss in equity).
5) You know you will make out fine in a deep recession or even depression and the likely resulting losses in all asset classes you invest in. You won’t need to depend on these assets to make payments on the house in case of job loss.

These are all very realistic possibilities in the current economic environment. If you know none of these things will affect your homeownership and find your dream home then there is no reason not to jump in. No fear involved but instead a realistic approach to buying into that asset class in the current heavily negative economic environment that even the “experts” don’t know the outcome of.

cheers

[capeman]

There’s no need to sit in a dark corner in fear anymore. We all know that in the short-mid term houses are greatly depreciating assets.

If you find your dream home and can afford it and almost nothing will make you lose it in the next 10-15 years then you should seriously consider it. That goes for anyone who is sure that they are totally fine and unfazed financially from any of the following possibilities and puts at least 20% down:

1) If you are married you know you won’t get divorced in the next 10-15 years or if you will then you can make it through the divorce without liquidating the house.
2) You will have a job that allows you to stay in the house or you don’t need a job at all to make the payments.
3) Your career won’t force you to relocate in the next 10-15 years or you have the cash (Cash not investement cashout, see #5) or company benefit that will allow you to get out from under the house.
4) You are comfortable in the fact that you got a nice low interest rate but will be fine with comps getting heavily trounced with the inevitable rate increases at some point in the not-so-distant future. (As long as you stay in the house for 10-15 years you will likely weather the loss in equity).
5) You know you will make out fine in a deep recession or even depression and the likely resulting losses in all asset classes you invest in. You won’t need to depend on these assets to make payments on the house in case of job loss.

These are all very realistic possibilities in the current economic environment. If you know none of these things will affect your homeownership and find your dream home then there is no reason not to jump in. No fear involved but instead a realistic approach to buying into that asset class in the current heavily negative economic environment that even the “experts” don’t know the outcome of.

cheers

[capeman]

There’s no need to sit in a dark corner in fear anymore. We all know that in the short-mid term houses are greatly depreciating assets.

If you find your dream home and can afford it and almost nothing will make you lose it in the next 10-15 years then you should seriously consider it. That goes for anyone who is sure that they are totally fine and unfazed financially from any of the following possibilities and puts at least 20% down:

1) If you are married you know you won’t get divorced in the next 10-15 years or if you will then you can make it through the divorce without liquidating the house.
2) You will have a job that allows you to stay in the house or you don’t need a job at all to make the payments.
3) Your career won’t force you to relocate in the next 10-15 years or you have the cash (Cash not investement cashout, see #5) or company benefit that will allow you to get out from under the house.
4) You are comfortable in the fact that you got a nice low interest rate but will be fine with comps getting heavily trounced with the inevitable rate increases at some point in the not-so-distant future. (As long as you stay in the house for 10-15 years you will likely weather the loss in equity).
5) You know you will make out fine in a deep recession or even depression and the likely resulting losses in all asset classes you invest in. You won’t need to depend on these assets to make payments on the house in case of job loss.

These are all very realistic possibilities in the current economic environment. If you know none of these things will affect your homeownership and find your dream home then there is no reason not to jump in. No fear involved but instead a realistic approach to buying into that asset class in the current heavily negative economic environment that even the “experts” don’t know the outcome of.

cheers

[Ex-SD]

Capeman…………………..Great post! Well said.

Since the 70’s (and maybe before), there has been this “California thing” of rushing to buy before the other guy beats you to the deal, Primarily in CA and rarely in any other part of the entire USA would you see people camp out to pay for ridiculously priced, tract homes, In fact, most people in the country have laughed at Californians when they would show footage of people camping out and standing in long lines. Like I said, it’s primarily a CA thing. Now that prices have dropped substantially, the old greed & fear factor of beating the other guy is once again, rearing it’s head among otherwise, rational people. All anyone has to do is watch the news on tv, read the newspapers and major internet sites to realize that the economy is going to take an even greater hit over the next year-plus. Just look at what has happened in the Temecula-Riverside areas. They’re simply ahead of the curve and even if prices don’t drop as far as they have in those areas, anybody who can read or hear damned well knows that San Diego real estate prices are going to drop this year. Whether they drop 10% or 30%, you’re playing with fire and you’ll be paying back the excess money plus interest and higher taxes for a long, long time.
It’s obvious to me that some are simply tired of waiting and they’re making an emotional decision rather than a rational one.
Hey, I’m not knocking those people but it sure is interesting to watch the behavior of these potential buyers, rationalizing their purchase of a home in such turbulent, economic times. It’s their money and more power to them. Good luck to those of you who have recently jumped in and also to those who are going to do so this year.

[Ex-SD]

Capeman…………………..Great post! Well said.

Since the 70’s (and maybe before), there has been this “California thing” of rushing to buy before the other guy beats you to the deal, Primarily in CA and rarely in any other part of the entire USA would you see people camp out to pay for ridiculously priced, tract homes, In fact, most people in the country have laughed at Californians when they would show footage of people camping out and standing in long lines. Like I said, it’s primarily a CA thing. Now that prices have dropped substantially, the old greed & fear factor of beating the other guy is once again, rearing it’s head among otherwise, rational people. All anyone has to do is watch the news on tv, read the newspapers and major internet sites to realize that the economy is going to take an even greater hit over the next year-plus. Just look at what has happened in the Temecula-Riverside areas. They’re simply ahead of the curve and even if prices don’t drop as far as they have in those areas, anybody who can read or hear damned well knows that San Diego real estate prices are going to drop this year. Whether they drop 10% or 30%, you’re playing with fire and you’ll be paying back the excess money plus interest and higher taxes for a long, long time.
It’s obvious to me that some are simply tired of waiting and they’re making an emotional decision rather than a rational one.
Hey, I’m not knocking those people but it sure is interesting to watch the behavior of these potential buyers, rationalizing their purchase of a home in such turbulent, economic times. It’s their money and more power to them. Good luck to those of you who have recently jumped in and also to those who are going to do so this year.

[Ex-SD]

Capeman…………………..Great post! Well said.

Since the 70’s (and maybe before), there has been this “California thing” of rushing to buy before the other guy beats you to the deal, Primarily in CA and rarely in any other part of the entire USA would you see people camp out to pay for ridiculously priced, tract homes, In fact, most people in the country have laughed at Californians when they would show footage of people camping out and standing in long lines. Like I said, it’s primarily a CA thing. Now that prices have dropped substantially, the old greed & fear factor of beating the other guy is once again, rearing it’s head among otherwise, rational people. All anyone has to do is watch the news on tv, read the newspapers and major internet sites to realize that the economy is going to take an even greater hit over the next year-plus. Just look at what has happened in the Temecula-Riverside areas. They’re simply ahead of the curve and even if prices don’t drop as far as they have in those areas, anybody who can read or hear damned well knows that San Diego real estate prices are going to drop this year. Whether they drop 10% or 30%, you’re playing with fire and you’ll be paying back the excess money plus interest and higher taxes for a long, long time.
It’s obvious to me that some are simply tired of waiting and they’re making an emotional decision rather than a rational one.
Hey, I’m not knocking those people but it sure is interesting to watch the behavior of these potential buyers, rationalizing their purchase of a home in such turbulent, economic times. It’s their money and more power to them. Good luck to those of you who have recently jumped in and also to those who are going to do so this year.

[Ex-SD]

Capeman…………………..Great post! Well said.

Since the 70’s (and maybe before), there has been this “California thing” of rushing to buy before the other guy beats you to the deal, Primarily in CA and rarely in any other part of the entire USA would you see people camp out to pay for ridiculously priced, tract homes, In fact, most people in the country have laughed at Californians when they would show footage of people camping out and standing in long lines. Like I said, it’s primarily a CA thing. Now that prices have dropped substantially, the old greed & fear factor of beating the other guy is once again, rearing it’s head among otherwise, rational people. All anyone has to do is watch the news on tv, read the newspapers and major internet sites to realize that the economy is going to take an even greater hit over the next year-plus. Just look at what has happened in the Temecula-Riverside areas. They’re simply ahead of the curve and even if prices don’t drop as far as they have in those areas, anybody who can read or hear damned well knows that San Diego real estate prices are going to drop this year. Whether they drop 10% or 30%, you’re playing with fire and you’ll be paying back the excess money plus interest and higher taxes for a long, long time.
It’s obvious to me that some are simply tired of waiting and they’re making an emotional decision rather than a rational one.
Hey, I’m not knocking those people but it sure is interesting to watch the behavior of these potential buyers, rationalizing their purchase of a home in such turbulent, economic times. It’s their money and more power to them. Good luck to those of you who have recently jumped in and also to those who are going to do so this year.

[Ex-SD]

Capeman…………………..Great post! Well said.

Since the 70’s (and maybe before), there has been this “California thing” of rushing to buy before the other guy beats you to the deal, Primarily in CA and rarely in any other part of the entire USA would you see people camp out to pay for ridiculously priced, tract homes, In fact, most people in the country have laughed at Californians when they would show footage of people camping out and standing in long lines. Like I said, it’s primarily a CA thing. Now that prices have dropped substantially, the old greed & fear factor of beating the other guy is once again, rearing it’s head among otherwise, rational people. All anyone has to do is watch the news on tv, read the newspapers and major internet sites to realize that the economy is going to take an even greater hit over the next year-plus. Just look at what has happened in the Temecula-Riverside areas. They’re simply ahead of the curve and even if prices don’t drop as far as they have in those areas, anybody who can read or hear damned well knows that San Diego real estate prices are going to drop this year. Whether they drop 10% or 30%, you’re playing with fire and you’ll be paying back the excess money plus interest and higher taxes for a long, long time.
It’s obvious to me that some are simply tired of waiting and they’re making an emotional decision rather than a rational one.
Hey, I’m not knocking those people but it sure is interesting to watch the behavior of these potential buyers, rationalizing their purchase of a home in such turbulent, economic times. It’s their money and more power to them. Good luck to those of you who have recently jumped in and also to those who are going to do so this year.

[an]

capeman, can you say yes to 1,3,5 in the best economic times? Economic cycles comes and goes, probably a few times in 30 years period. Does any first time home buyer ever not need a job at all to make the payments?

[an]

capeman, can you say yes to 1,3,5 in the best economic times? Economic cycles comes and goes, probably a few times in 30 years period. Does any first time home buyer ever not need a job at all to make the payments?

[an]

capeman, can you say yes to 1,3,5 in the best economic times? Economic cycles comes and goes, probably a few times in 30 years period. Does any first time home buyer ever not need a job at all to make the payments?

[an]

capeman, can you say yes to 1,3,5 in the best economic times? Economic cycles comes and goes, probably a few times in 30 years period. Does any first time home buyer ever not need a job at all to make the payments?

[Author]

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