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ParticipantSD R –
Great info on new home buying. What about existing homes? Obviously you wouldn’t be buying from a developer, but I imagine you don’t have quite as much sway if someone owns the house, and personally I’m quite hesitant of using a realtor.
The dishonest ones are one thing, though you do much to better their image, but it’s the fact even though the owner pays them, the owner gets that money from the buyer. Come my time to buy it has made me consider Redfin, or becoming an agent if nothing more than to transact my own house.
Unless you know recommend any realtors in the SFV?
Participant“Yes, and they will all make 150K / yr right off the boat and buy $800K homes…..ahahahaha right……”
Even IF they made that much, they’d be legal now and subject to taxes. So take that $150 and knock off 30-40%.
Personally I think those who have been here illegally should have to pay backtaxes. I’ve said this before – it may be tough on them, but welcome to the Good ol’ US and A.
Participant“Yes, and they will all make 150K / yr right off the boat and buy $800K homes…..ahahahaha right……”
Even IF they made that much, they’d be legal now and subject to taxes. So take that $150 and knock off 30-40%.
Personally I think those who have been here illegally should have to pay backtaxes. I’ve said this before – it may be tough on them, but welcome to the Good ol’ US and A.
ParticipantThat’s kinda what I thought Rustico, as it seems to be the position of most on here. For where I am at now, the idea of renting the rest of my life seems more and more appealing all the time. I’ve been here 3 years watching prices soar. Now that they are coming down I feel better having waited, but I’m certainly not ready to jump in.
A break for me would be 2002-3 levels. If they don’t get there I guess I’ll be renting even longer.
ParticipantThat’s kinda what I thought Rustico, as it seems to be the position of most on here. For where I am at now, the idea of renting the rest of my life seems more and more appealing all the time. I’ve been here 3 years watching prices soar. Now that they are coming down I feel better having waited, but I’m certainly not ready to jump in.
A break for me would be 2002-3 levels. If they don’t get there I guess I’ll be renting even longer.
Participant“Right, the universal healthcare and higher quality of life comes about when the rich are paying for your desire to work 3 hours and then take a 3 hour nap and then hopefully go back to work if you’re not too busy drinking your mid-afternoon wine.”
Actually France is higher in per hour productivity than the US.
That’s something against our obession with 27 hour works days.
I personally think people would be MORE productive if they didn’t waste their entire days in a cubicle. It’s sad, we spend more time with co-workers than family. Then we wonder why our society is going to the toilet.
Participant“Right, the universal healthcare and higher quality of life comes about when the rich are paying for your desire to work 3 hours and then take a 3 hour nap and then hopefully go back to work if you’re not too busy drinking your mid-afternoon wine.”
Actually France is higher in per hour productivity than the US.
That’s something against our obession with 27 hour works days.
I personally think people would be MORE productive if they didn’t waste their entire days in a cubicle. It’s sad, we spend more time with co-workers than family. Then we wonder why our society is going to the toilet.
ParticipantRustico, I’m not sure I follow your comment “The ones that most likely aren’t getting a break are the ones that are doing the actual buying.” I guess the real question is what you both mean by break? A discount? A repreive? A Free Lunch?
The first buyer you describe (saving, living within their means) could get a break on pricing today, but I think the majority of people here would say prices are falling, and all the factors that drive price down are increasing. Buying today may be better than a year ago, but buying a year from now will probably be better, and 2 years better still. Although no one really knows, we all agree prices are dropping.
Which gets to Alex’ last question: if you look at the fundamentals of affordability, prices are too high regardless of rates. Higher rates will probably end up having little affect on those waiting to buy, and in fact will probably dry up more demand until prices further correct. The negative effect of rising rates will be on those who already over-extended to buy with exotic mortgages.
Your numbers change in your example, and I didn’t check a mortgage calculator but a 2% rate increase on a 30% lower home is most likely the break in pricing I think Rustico mentioned. I don’t think the payment would be the same, but the depends more on the type of loan and down payment. You get a 15yr fixed at 8 or 9% on 30-40% lower prices, you’ll be a lot better in the long run, unless of course you’re a speculator and want to sell at 100% profit after 6 months. That’s the biggest group of buyers the rates will scare off, which will drive prices down more.
Logically it makes more sense to take an ARM when rates are high, but no one thinks logically about housing. At least outside this forum.
ParticipantRustico, I’m not sure I follow your comment “The ones that most likely aren’t getting a break are the ones that are doing the actual buying.” I guess the real question is what you both mean by break? A discount? A repreive? A Free Lunch?
The first buyer you describe (saving, living within their means) could get a break on pricing today, but I think the majority of people here would say prices are falling, and all the factors that drive price down are increasing. Buying today may be better than a year ago, but buying a year from now will probably be better, and 2 years better still. Although no one really knows, we all agree prices are dropping.
Which gets to Alex’ last question: if you look at the fundamentals of affordability, prices are too high regardless of rates. Higher rates will probably end up having little affect on those waiting to buy, and in fact will probably dry up more demand until prices further correct. The negative effect of rising rates will be on those who already over-extended to buy with exotic mortgages.
Your numbers change in your example, and I didn’t check a mortgage calculator but a 2% rate increase on a 30% lower home is most likely the break in pricing I think Rustico mentioned. I don’t think the payment would be the same, but the depends more on the type of loan and down payment. You get a 15yr fixed at 8 or 9% on 30-40% lower prices, you’ll be a lot better in the long run, unless of course you’re a speculator and want to sell at 100% profit after 6 months. That’s the biggest group of buyers the rates will scare off, which will drive prices down more.
Logically it makes more sense to take an ARM when rates are high, but no one thinks logically about housing. At least outside this forum.
June 11, 2007 at 5:50 PM in reply to: Article on Yahoo.com: Nation Doomed To 2 Million Foreclosures #58476ParticipantThe website providing the info the article, http://www.HomePredictor.com, is blocked from my home internet.
Anyone else?
June 11, 2007 at 5:50 PM in reply to: Article on Yahoo.com: Nation Doomed To 2 Million Foreclosures #58503ParticipantThe website providing the info the article, http://www.HomePredictor.com, is blocked from my home internet.
Anyone else?
ParticipantNAR housing numbers came out this week for the second half of 2019:
“Things have been bad for the past 12 years but we are optimistic the end of this year should see a 0.8% uptick in median price.”
ParticipantNAR housing numbers came out this week for the second half of 2019:
“Things have been bad for the past 12 years but we are optimistic the end of this year should see a 0.8% uptick in median price.”
June 11, 2007 at 10:31 AM in reply to: Need advice on the pros and cons of interest only loans #58392ParticipantI’m sorry, maybe I am naive or too conservative financially but I just don’t see any benefit to an I/O loan, outside a few extreme circumstances.
These loans are among the “innovative products” Greenspan hailed as extending the hand of homeownership to new classes of people – the same products that have led to skyrocketing foreclosures.
The only way you can benefit from this is if your equity grows at a rate greater than your interest rate. With prices dropping I see it as one of the worst ways to go, unless – you plan to sell before your start paying the principal AND can sell at a higher price (unlikely for the next several years), OR – you will be making substantially more money by the time you start paying the principal. But who can really say they will triple their income in 5 years?
Cyphire the only flaw in your logic is it assumes prices will rise during the I/O period. Even if they do and it IS more than the rate of the loan, you still only benefit if you sell or can afford the higher payments, and even then you’re paying more on the rest of the loan than you would have you paid towards the principal in the beginning.
I just don’t see the benefit. These worked when home prices were sky rocketing. In reality they are practical for very few people.
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