Poll : do u rent or own your home ? what do u think of the real estate market now ?

[jimmyhaha]

need your opinion ..

my relatives is looking to buy a new home

it seems that now everyone RUSH to buy their home instead of renting due to low home mortgage rate

is the party over ? I am worried about them buying the home @ peak now and the price will fall soon..

I wonder the real estate will hold up or is the bubble going to be bust very soon ?

like the fall of dot.com in year 2000-2001 and like the stock all those telco and big company ?

unemployment rate is still high and stock market is not good, how comes the real estate market hold up so well ?

real estate price have been up a lot in the recent years, esp. in CA, TX, NY

what do u guys think ?

thanks in advance

 

[Sluggo]

I own my home, and never plan on going back to the rental market....unless it is in the landlord aspect.

 

[Mister T]

The real estate market is overvalued... a bubble waiting to burst.

No way in hell I am buying anything these days...

 

[amdskip]

I still live at home in my 2nd year of a community college, will be on my own in 2-3 years though.

 

[Atrail]

You don't own jack till you pay that note off!

 

[jlee75]

yeah it's still expensive out here. still keeps going higher. but i expect housing prices to follow rental apartment prices. apartments are having special deals all the time now. last time they did this was 6 years ago. the house prices should drop next year.. significantly. even though growth is still strong around here, they're still building homes in Irvine. they won't sell for as much.

 

[Maverick]

Originally posted by: Atrail
You don't own jack till you pay that note off!

or you sell it and pocket the difference between your selling price and buying price. Thats the real reason to even buy.

 

[eplebnista]

I own it.

 

[Brutuskend]

I'm looking at buying a home right now.

THINGS are SO expensive here in the Eugene Springfield area though.

I don't know if I can find a place I can afford!

 

[Rivergater]

relevant article and links to other articles:

http://money.cnn.com/2002/09/09/pf/yourhome/bubbles/index.htm


i personally don't believe that there is a real estate bubble in the traditional sense of how the term "bubble" is used in economics.
property can be valued using conventional valuation methods so its unlikely that we're going to see something like what happened to internet stocks.

the article discusses how real estate prices (at the national level) never decrease so your decision rests on what you will be able to afford now or later.

 

[tm37]

Yes the market could DROP BUT...

A home is a LONG TERM investment. Take a look at the vacancy rates in APartments in your area if those are low there is no reason to believe that house value would make a considerable drop. I moved into a house last year and I MOVED INTO 15K in Equity. That of course is PAPER money that I don't plan on ever spending, I would like to convince my wife that we need to stay here forever. But If you can afford the payment who cares if the value drops? You never lose money until you sell and any finacial planner would tell you the best investment you can make is BUYING over renting. You can write off the interest and your payment shouldn't go up.

I haven't had a rental increase and infact about three months ago my payment went DOWN:Q They dropped the property tax rate and my payment dropped 30 bucks. Howmany renters do you know that have gotten a DROP in payment in the last few years. if you look at the rate of rental rates here in MN (where I am) it has averaged 3-5% a year. so using that watch this.

1 st year 800 rent vs.860 payment
2nd year 832 rent vs. 860 payment
3rd year 865 rent vs. 860 payment
4th Year 899 rent vs. 860 payment
5th Year 935 rent vs. 860 payment
6th year 973 rent vs. 860 payment
7th year 1012 rent vs. 860 payment
8th year 1052 rent vs. 860 payment
0th year 1094 rent vs. 860 payment
11th year 1138 rent vs. 860 payment.

31st year 2594 rent vs 80 payment (tax and Insurance):Q

You payment may rise a little BUT I can gaurantee that it will not rise near the rate of the rental. (if your taxes go up you payment will rise up)

ALso you could see a rise in the Value of you property (if you own it for more that 7 year your chances are about 99%)

It is almost never a good idea to rent or lease assets that will rise in value, only thoose that will fall in value.

 

[rufruf44]

Originally posted by: tm37
Yes the market could DROP BUT...

A home is a LONG TERM investment. Take a look at the vacancy rates in APartments in your area if those are low there is no reason to believe that house value would make a considerable drop. I moved into a house last year and I MOVED INTO 15K in Equity. That of course is PAPER money that I don't plan on ever spending, I would like to convince my wife that we need to stay here forever. But If you can afford the payment who cares if the value drops? You never lose money until you sell and any finacial planner would tell you the best investment you can make is BUYING over renting. You can write off the interest and your payment shouldn't go up.

I haven't had a rental increase and infact about three months ago my payment went DOWN:Q They dropped the property tax rate and my payment dropped 30 bucks. Howmany renters do you know that have gotten a DROP in payment in the last few years. if you look at the rate of rental rates here in MN (where I am) it has averaged 3-5% a year. so using that watch this.

1 st year 800 rent vs.860 payment
2nd year 832 rent vs. 860 payment
3rd year 865 rent vs. 860 payment
4th Year 899 rent vs. 860 payment
5th Year 935 rent vs. 860 payment
6th year 973 rent vs. 860 payment
7th year 1012 rent vs. 860 payment
8th year 1052 rent vs. 860 payment
0th year 1094 rent vs. 860 payment
11th year 1138 rent vs. 860 payment.

31st year 2594 rent vs 80 payment (tax and Insurance):Q

You payment may rise a little BUT I can gaurantee that it will not rise near the rate of the rental. (if your taxes go up you payment will rise up)

ALso you could see a rise in the Value of you property (if you own it for more that 7 year your chances are about 99%)

It is almost never a good idea to rent or lease assets that will rise in value, only thoose that will fall in value.

Nicely put, and you can get even lower interest rate by using ARM mortgage. Considering that the average family only stay in a house for about 7 years, its not a bad investment to shave off those extra interest points. A 7/1 ARM can be had for as low as 5.25%.