What if you leave it in the stock market and lose it anyway????
At the current decline in the Dow......it could go to 5000 in the not so distant future if it continues the current downslide...........
Question About Buying A House
- Thread starter BuffaloBill
- Start date
What if you leave it in the stock market and lose it anyway????
At the current decline in the Dow......it could go to 5000 in the not so distant future if it continues the current downslide...........
BBill,
I just got here and read this whole thing. What amazed me was how long it took the conversation here to tell WHERE this property was and HOW you were paying for it, as in, cash laying around, or, SELLING your stock portfolio
I'm a real estate investor first, and my stuff has dropped where I'm at, but negligible as of now. I know however my stocks have dropped alot more than my Real Estate Investments:scared
Now that I know where it is, and how you are paying for it, I agree with your attorney, just WAIT! :director: You say nothing has dropped around this area, then wait. You say you are going to sell some of your portfolio, wait on that also:nono: .
The next great Condo will always be there for you, wether its next week or next year. And remember that Cash is just that, not equities, bonds, gold, etc....
GL,
Franky :toast:
Hi Franky,
Thanks for the advice.
Here is the other problem. Not only will I be losing this Condo now, but I will have to continue to rent for at least another year or two.
The rents here are really out of control. They are so high it is like paying my mortgage.
So over the next couple years I will be throwing away a lot of money on rent. This is why I would rather buy.
But then I have all of the other considerationas as you have mentioned.
I am thinking that I can get a really good price on the Condo, being that there are not too many qualified buyers out there right now.
Plus, the people who are leaving this Condo really need to get out fast because the guy has a job re-location situation.
Couldn't all of this work to my advantage?
Thanks.
Thanks for the advice.
Here is the other problem. Not only will I be losing this Condo now, but I will have to continue to rent for at least another year or two.
The rents here are really out of control. They are so high it is like paying my mortgage.
So over the next couple years I will be throwing away a lot of money on rent. This is why I would rather buy.
But then I have all of the other considerationas as you have mentioned.
I am thinking that I can get a really good price on the Condo, being that there are not too many qualified buyers out there right now.
Plus, the people who are leaving this Condo really need to get out fast because the guy has a job re-location situation.
Couldn't all of this work to my advantage?
Thanks.
hell ya all of that can work to your advantage. If the people are that motivated, offer them
10-20% less than what they are asking, have a # in mind that you will pay for the place and start negotiating from there. A low ball offer might meet with a "are you serious?" kind of reply, but you can counter with things like find your own buyer, I'm prepared to walk away and wait, I'm a renter so I hold all the cards in this deal, ect ect. So what if you insult them with a low-ball offer? Its just a business transaction and you are just protecting your interests....
I'm selling my house myself and I had someone look at it on Tuesday. On Wednesday he called me and asked if I'd take 15% less than what I was asking as its a buyers market. I told him that while I'm open to negotiating the final sales price, I am also prepared to pay two mortgages if necessary to get what I feel is a fair price for my home and that if he wanted to sit down and discuss it further, I was ready to do so.
I haven't heard back from him as of this morning...
Good Debt............Tell that to the people who bought 300,000 homes that have decreased in value 40%........
Now they owe 300,000 mortgage on a 180,000 home that is still decreasing by the day........
All this financing works great when things are appreciating but when the decline comes........WATCH OUT!!!
The best answer may be to not buy at all right now and just wait until the market bottoms out and buy the same house you are looking at now for a discounted price of 25% of todays value......
Yes, a mortgage is good debt. I don't think the fact that the housing market is currently down suddenly changes that fact.
And the scenario you listed assumes the borrower took out a 100% mortgage. I would never, ever advise anyone to take out a 100% mortgage. I'm all for leveraging, but I do think you need to give yourself some wiggle room.
And you're right, even if somebody put 20% down and their house has decreased 40% in value, they would be in a tight spot. It's kind of hard to predict that that will happen BEFORE you buy your house though.
Based on your circumstances, if it were ME, I would wait. I think from an investment standpoint you stand to gain more by waiting. Having said that, ask yourself these two questions:
1) What would make you happier? Buying now or waiting?
2) If the answer is buying now, can you live with the possibility of knowing that it MIGHT not be the best choice from an investment standpoint?
And if you do end up buying now, and the home prices in your area haven't dropped much yet, I would play it safe and put a big downpayment on that house. Who knows how much they will drop in the future?
GL
Hi Glenn,
I guess you are right. I am probably better off waiting. Ideally, I would want to wait until the stock market comes back up to at least 11,000. This way I would make a lot of my money back.
Then I could buy a Condo at that time. Either at the same price that I would pay now, or hopefully lower.
My problem is that I hate renting. It is just like throwing money away. Also, we have been looking for two years and this Condo is by far the best one. We would have to get really lucky to get something like this again.
Thanks a lot for your input Glenn, I appreciate it.
BB,
Renting is not like throwing money away!
Buying a depreciating asset and then paying high taxes on it, in addition to more expensive insurances, maintenance and repair is more like throwing $$$ away.
There have been a few times since I bought my first home that I would have liked to cash out and rent....Never do though (its a family wife and kids thing)
bear
Renting is not like throwing money away!
Buying a depreciating asset and then paying high taxes on it, in addition to more expensive insurances, maintenance and repair is more like throwing $$$ away.
There have been a few times since I bought my first home that I would have liked to cash out and rent....Never do though (its a family wife and kids thing)
bear
..................................................................
no shit Dick Tracey
Bear,
You hit the nail on the head with the family thing.
I have a wife and two kids, and I really want a nice place for them to grow up in. My wife keeps on pressuring me to buy something.
But I guess you are right. As of now, it is probably not the best time to buy.
Especially because I will be liquidating stocks that have already lost a lot of value too.
Most of all of my money is in the stock market. My account is managed by a professional and I am set up with 65% of my portfolio in fixed income, and 35% in equities.
Even with this conservative set up, I am taking a bath just like everyone else is.
Hopefully the stock market will rebound within the next couple of years or else I am going to be waiting a long time to buy something.
My portfolio is down about 30% over the past 2 years.
My fear is that the market goes down to 6000 or even 5000 and then it takes me YEARS to recover that.
All of the professionals say that I would be INSANE to cash out any portion of that now. I agree, but my thing is that I don't want to have to wait another 10 years for it to recover so i can then buy something.
This is why I was thinking of cashing out a portion of that and buying real estate.
But I guess you are right, real estate could be going down as well, so I am sort of in a lose either way spot right now.
Thanks a lot for the help.
