Realtors - when is the time to buy?

[apac]

So with the real-estate market down quite a bit, and talks of a stimulus package offering $15K to new home buyers, my thoughts are that it's a great time to go condo hunting. I've been renting for a couple years out of school now and could probably scrounge enough resources to afford a place.

My question to the professionals is - am I completely off base here? Is this a buyers market, or should I be waiting?

 

[KK]

why a condo?

 

[OCGuy]

Great time to buy. FHA 3.5% down is a great program.....

On a side note, it will still be a great time to buy in 6 months, so you dont have to rush. Values are not going up any time soon. The financing is just not there to support it.

 

[zinfamous]

Excellent time to buy. Too bad you have 0.5% chance to find a bank willing to loan ANYONE money right now. They won't even loan to each other.

 

[apac]

Originally posted by: Ocguy31
Great time to buy. FHA 3.5% down is a great program.....

On a side note, it will still be a great time to buy in 6 months, so you dont have to rush. Values are not going up any time soon. The financing is just not there to support it.

Oh oops, I edited out the part where I said I'd be looking in the next 6 months to 1 year time frame.

With regards to why a condo, looking for a 2BR in the city. Houses are still more than I can afford right now. No reason not to pick up a condo and keep it as an investment property later.

 

[OCGuy]

Originally posted by: apac

Originally posted by: Ocguy31
Great time to buy. FHA 3.5% down is a great program.....

On a side note, it will still be a great time to buy in 6 months, so you dont have to rush. Values are not going up any time soon. The financing is just not there to support it.

Oh oops, I edited out the part where I said I'd be looking in the next 6 months to 1 year time frame.

With regards to why a condo, looking for a 2BR in the city. Houses are still more than I can afford right now. No reason not to pick up a condo and keep it as an investment property later.

The only thing with Condo V House is the association dues. I am doing a 3.5% down loan for a friend right now. He is qualified for about $180K if he gets a condo, and ~190K if he gets a house. All of the association dues around here are $225+ per month, so that really eats into the amount of condo he can afford.

But condos are not a bad option.

 

[dclapps]

Where do you live? Or better, where do you want to buy? You should be planning to buy regardless of the times, as renting likely isn't in your financial best interests. If we are to believe that this plan will stimulate buying, then housing prices will level off and begin creeping up slowly, very slowly. If the plan does nothing, I don't see housing prices dropping past 10% of where they are now, however that is highly based upon where you live. Here in Orange County, prices didn't see the same decline as did the Inland Empire, for example. I believe that if you qualify for the money, take advantage of it, or someone else will.

I wouldn't pull the trigger too soon though. Let the plan shake out for a bit, let early adopters test the waters, and look at houses beginning 2H09. I do have a RE license, but I work on the commercial side (disclaimer).

Good luck,
Danny

 

[Jeff7]

$15k to new home buyers?
Dandy, more people who can't afford the home they're looking at are going to spring for it now.

 

[OCGuy]

Originally posted by: Jeff7
$15k to new home buyers?
Dandy, more people who can't afford the home they're looking at are going to spring for it now.

There are no loans out there that let you buy more than you can afford. You have to prove all of your income/debt.

Anyone getting house right now can afford it.

 

[mb]

Buying a new home? Find out when the fiscal year (or at least a quarter end) is for the home builder.

I work for a home builder. The deals we give away during these times are ridiculous.

 

[apac]

Originally posted by: Ocguy31

Originally posted by: Jeff7
$15k to new home buyers?
Dandy, more people who can't afford the home they're looking at are going to spring for it now.

There are no loans out there that let you buy more than you can afford. You have to prove all of your income/debt.

Anyone getting house right now can afford it.

So, stupid question. Odds of me getting a 180K loan right now? I am...
23
No debt of any kind, pay off credit cards every month
Decent credit - no bad credit, but haven't built too much good credit. Had a 20K car loan approved last summer at 3.9%
Income $68K/yr
Could probably afford a 20K down payment

 

[OCGuy]

Originally posted by: apac

Originally posted by: Ocguy31

Originally posted by: Jeff7
$15k to new home buyers?
Dandy, more people who can't afford the home they're looking at are going to spring for it now.

There are no loans out there that let you buy more than you can afford. You have to prove all of your income/debt.

Anyone getting house right now can afford it.

So, stupid question. Odds of me getting a 180K loan right now? I am...
23
No debt of any kind, pay off credit cards every month
Decent credit - no bad credit, but haven't built too much good credit. Had a 20K car loan approved last summer at 3.9%
Income $68K/yr
Could probably afford a 20K down payment

Edit: The tradelines could be an issue. How many tradelines have you ever had? How long have you had them?

 

[apac]

Originally posted by: Ocguy31

Originally posted by: apac

Originally posted by: Ocguy31

Originally posted by: Jeff7
$15k to new home buyers?
Dandy, more people who can't afford the home they're looking at are going to spring for it now.

There are no loans out there that let you buy more than you can afford. You have to prove all of your income/debt.

Anyone getting house right now can afford it.

So, stupid question. Odds of me getting a 180K loan right now? I am...
23
No debt of any kind, pay off credit cards every month
Decent credit - no bad credit, but haven't built too much good credit. Had a 20K car loan approved last summer at 3.9%
Income $68K/yr
Could probably afford a 20K down payment

Slam dunk.

lol, interesting. Well I guess I won't worry about that part. Just have to figure out whether I'll rent for another year or just jump on it.

 

[OCGuy]

Originally posted by: apac

Originally posted by: Ocguy31

Originally posted by: apac

Originally posted by: Ocguy31

Originally posted by: Jeff7
$15k to new home buyers?
Dandy, more people who can't afford the home they're looking at are going to spring for it now.

There are no loans out there that let you buy more than you can afford. You have to prove all of your income/debt.

Anyone getting house right now can afford it.

So, stupid question. Odds of me getting a 180K loan right now? I am...
23
No debt of any kind, pay off credit cards every month
Decent credit - no bad credit, but haven't built too much good credit. Had a 20K car loan approved last summer at 3.9%
Income $68K/yr
Could probably afford a 20K down payment

Slam dunk.

lol, interesting. Well I guess I won't worry about that part. Just have to figure out whether I'll rent for another year or just jump on it.

Your worst case scenario would be an FHA loan. And that isnt a bad deal, as rates are in the low 5% range. You are a good candidate. Just take your time.

 

[apac]

Originally posted by: Ocguy31

Originally posted by: apac

Originally posted by: Ocguy31

Originally posted by: Jeff7
$15k to new home buyers?
Dandy, more people who can't afford the home they're looking at are going to spring for it now.

There are no loans out there that let you buy more than you can afford. You have to prove all of your income/debt.

Anyone getting house right now can afford it.

So, stupid question. Odds of me getting a 180K loan right now? I am...
23
No debt of any kind, pay off credit cards every month
Decent credit - no bad credit, but haven't built too much good credit. Had a 20K car loan approved last summer at 3.9%
Income $68K/yr
Could probably afford a 20K down payment

Edit: The tradelines could be an issue. How many tradelines have you ever had? How long have you had them?

2 credit cards, one is about 3 years old, the other 8 months or so. Car loan also at about 8 months. All paid on time and in full.

edit: oh I'm an idiot, I guess you could call the car loan debt. Forgot about that one.

 

[OCGuy]

Originally posted by: apac

Originally posted by: Ocguy31

Originally posted by: apac

Originally posted by: Ocguy31

Originally posted by: Jeff7
$15k to new home buyers?
Dandy, more people who can't afford the home they're looking at are going to spring for it now.

There are no loans out there that let you buy more than you can afford. You have to prove all of your income/debt.

Anyone getting house right now can afford it.

So, stupid question. Odds of me getting a 180K loan right now? I am...
23
No debt of any kind, pay off credit cards every month
Decent credit - no bad credit, but haven't built too much good credit. Had a 20K car loan approved last summer at 3.9%
Income $68K/yr
Could probably afford a 20K down payment

Edit: The tradelines could be an issue. How many tradelines have you ever had? How long have you had them?

2 credit cards, one is about 3 years old, the other 8 months or so. Car loan also at about 8 months. All paid on time and in full.

Because you have such young credit you would really need a GOOD FHA loan officer to get it done.

FHA allows you to use things that dont report on your credit report (Car insurance, health insurance, etc) as tradelines.

 

[apac]

Originally posted by: Ocguy31

Originally posted by: apac

Originally posted by: Ocguy31

Originally posted by: apac

Originally posted by: Ocguy31

Originally posted by: Jeff7
$15k to new home buyers?
Dandy, more people who can't afford the home they're looking at are going to spring for it now.

There are no loans out there that let you buy more than you can afford. You have to prove all of your income/debt.

Anyone getting house right now can afford it.

So, stupid question. Odds of me getting a 180K loan right now? I am...
23
No debt of any kind, pay off credit cards every month
Decent credit - no bad credit, but haven't built too much good credit. Had a 20K car loan approved last summer at 3.9%
Income $68K/yr
Could probably afford a 20K down payment

Edit: The tradelines could be an issue. How many tradelines have you ever had? How long have you had them?

2 credit cards, one is about 3 years old, the other 8 months or so. Car loan also at about 8 months. All paid on time and in full.

Because you have such young credit you would really need a GOOD FHA loan officer to get it done.

FHA allows you to use things that dont report on your credit report (Car insurance, health insurance, etc) as tradelines.

Also interesting. Need to run but thanks for the advice.

 

[ultimatebob]

Originally posted by: apac

Originally posted by: Ocguy31

Originally posted by: Jeff7
$15k to new home buyers?
Dandy, more people who can't afford the home they're looking at are going to spring for it now.

There are no loans out there that let you buy more than you can afford. You have to prove all of your income/debt.

Anyone getting house right now can afford it.

So, stupid question. Odds of me getting a 180K loan right now? I am...
23
No debt of any kind, pay off credit cards every month
Decent credit - no bad credit, but haven't built too much good credit. Had a 20K car loan approved last summer at 3.9%
Income $68K/yr
Could probably afford a 20K down payment

Umm... if you're only making $68K a year, I'm not sure if you can really afford a $180,000 mortgage AND a $20,000 car loan. Don't forget add the property tax, PMI (since you're not putting down 20%), condo insurance, and condo fees to your budget! Sure, you'll get approved for the mortgage... but you'll find yourself eating Ramen noodles with your leftover spending money for food.

Depending on the tax rates and condo fees in your area, you might be forking over somewhere in between $1,300 to $1,500 a month on house payments alone.

 

[spidey07]

There has probably never been such a great time to buy than right now.

 

[Dr. Detroit]

Originally posted by: spidey07
There has probably never been such a great time to buy than right now.

But that is what every realtor told me in 2006........


$15K tax break - I thought it was $8K from the Feds now and no longer a 0% loan but a true credit.

 

[Slew Foot]

Originally posted by: spidey07
There has probably never been such a great time to buy than right now.

Until 6 months from now, and then 6 months from then.

Technically, about 12 years ago was an even better time.

 

[spidey07]

Originally posted by: Fmr12B

Originally posted by: spidey07
There has probably never been such a great time to buy than right now.

But that is what every realtor told me in 2006........


$15K tax break - I thought it was $8K from the Feds now and no longer a 0% loan but a true credit.

I am not a Realtor just to make that clear. It's a true credit of 7500. Of course being the best time ever will depend on the market. But to say it's a buyers market would be a supreme understatement.

 

[Tweak155]

Originally posted by: ultimatebob

Originally posted by: apac

Originally posted by: Ocguy31

Originally posted by: Jeff7
$15k to new home buyers?
Dandy, more people who can't afford the home they're looking at are going to spring for it now.

There are no loans out there that let you buy more than you can afford. You have to prove all of your income/debt.

Anyone getting house right now can afford it.

So, stupid question. Odds of me getting a 180K loan right now? I am...
23
No debt of any kind, pay off credit cards every month
Decent credit - no bad credit, but haven't built too much good credit. Had a 20K car loan approved last summer at 3.9%
Income $68K/yr
Could probably afford a 20K down payment

Umm... if you're only making $68K a year, I'm not sure if you can really afford a $180,000 mortgage AND a $20,000 car loan. Don't forget add the property tax, PMI (since you're not putting down 20%), condo insurance, and condo fees to your budget! Sure, you'll get approved for the mortgage... but you'll find yourself eating Ramen noodles with your leftover spending money for food.

Depending on the tax rates and condo fees in your area, you might be forking over somewhere in between $1,300 to $1,500 a month on house payments alone.

True dat.

I made about 63k last year (assuming no bonus come april which ends our fiscal year) and I'd not consider such a high payment. I'd say I fork out $2,000 a month currently, maybe a bit more (all bills, lease a car and own a car) and I could probably afford that $1,500 a month for just housing but not worth it given how much extra income there is afterward. I'd say make sure you have at least a $800 buffer every month at that income or you are over-spending. I probably have about $1k - $1.3k or more extra each month outside of bills. Although, I am paying for a wedding so my opinion may be skewed

 

[JulesMaximus]

Of course it's a buyers market. Anyone with the money and desire to buy can make a killing right now.

 

[dirtboy]

A Realtor dosen't know anything about market cycles. If they did, they wouldn't have been pumping property at the peak and all the way to now.