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Why Now Is a Good Time to Buy a House

By mili   Follow   Thu, 12 Apr 2012, 7:53am   12,510 views   127 comments
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Although the economic recovery remains sluggish and some fear rising interest rates, there are growing signs that this a good time to buy a house, according to a new study.

http://www.thefiscaltimes.com/Articles/2012/04/11/Why-Now-is-a-Good-Time-to-Buy-a-House.aspx

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1. bmwman91 Follow Befriend (7) 37 threads 1,526 comments Mountain View, CA bmwman91's website Premium

   8   10:44am Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Protected   It is a good time to buy in some places. It is still a bad time to buy in others. And still others, such as many parts of the Bay Area, you sort of get boned if you rent or buy there.

2. 1sfrenter Follow Befriend (1) 11 threads 224 comments San Francisco, CA

   9   10:47am Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   E-man says The best time to buy is when interest rate is at 12%. It's even a better buy when interest rate is at 18%. :) IF you have cash, that is.If you don't have a ton of cash saved, then now is a good time to buy.

3. bubblesitter Follow Befriend (5) 10 threads 2,329 comments

   10   10:56am Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   1sfrenter says IF you have cash, that is.If you don't have a ton of cash saved, then now is a good time to buy. +1. However it is hard to convince some one who wants to breath debt in and breath out debt and the assumption there was that with 12% and 18% rates price will be the same as today, good luck with assuming that price will remain same with rate hikes.

4. 1sfrenter Follow Befriend (1) 11 threads 224 comments San Francisco, CA

   11   11:27am Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   bubblesitter says +1. However it is hard to convince some one who wants to breath debt in and breath out debt and the assumption there was that with 12% and 18% rates price will be the same as today, good luck with assuming that price will remain same with rate hikes. Assuming you are buying for shelter, not as an investment: Let's say you have 50K down payment. A 600K house with 50K down at 4% interest= $3250 month PITI and $1,170,000 after 30 years A 400K house with 50K down at 12% interest= $4016 month and $1,446,000 after 30 years. Now if you have 200K saved, that's a whole 'nother story. But if you have 200K saved you are probably in the top 5-10% of the population, as the bottom 90% are living paycheck-to-paycheck.

5. freak80 Follow Befriend (4) 52 threads 4,416 comments Corning, NY Premium

   12   11:33am Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Protected   E-man says The best time to buy is when interest rate is at 12%. It's even a better buy when interest rate is at 18%. :) True, but when have REAL interest rates ever been that high? real interest rate = nominal interest rate minus inflation rate Sure, nominal interest rates were high in 1980 but so was the inflation rate.

6. bmwman91 Follow Befriend (7) 37 threads 1,526 comments Mountain View, CA bmwman91's website Premium

   13   11:54am Thu 12 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected   I'd say that it is a good time to buy any time that you have 100% of the cash needed to make your desired purchase, and an additional 3-4x of that in retirement savings & investments. As one of my favorite posters in here says, "It's CASH or fuck you, America!"

7. dublin hillz Follow Befriend 10 threads 764 comments Dublin, CA

   14   11:56am Thu 12 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike   bmwman91 says I'd say that it is a good time to buy any time that you have 100% of the cash needed to make your desired purchase, and an additional 3-4x of that in retirement savings & investments. As one of my favorite posters in here says, "It's CASH or fuck you, America!" Yeah, like landlords will keep rent low enough to allow you to get to this level lo.

8. 1sfrenter Follow Befriend (1) 11 threads 224 comments San Francisco, CA

   15   12:01pm Thu 12 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike   dublin hillz says Yeah, like landlords will keep rent low enough to allow you to get to this level lo. That's what I'm saying. For the average person, by the time you pay rent, food, gas, etc. how are you gonna be able to save 200K?

9. freak80 Follow Befriend (4) 52 threads 4,416 comments Corning, NY Premium

   16   12:04pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Protected   dublin hillz says Yeah, like landlords will keep rent low enough to allow you to get to this level lo. They will if you live in an area with a reasonable cost of living. ;)

10. clambo Follow Befriend (5) 1,070 comments Santa Cruz, CA

    17   12:09pm Thu 12 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike   You save the $200K this way. You 1. co habitate with roommates save $300/month, $3600/year 2. brown bag your lunch, save $70/month, $850/year 3. buy balanced mutual fund and invest $800/month for several years. 4. Work saturdays and/or sundays at something not too difficult and save up an additional $5,000 per year. How do you NOT save up money? Try to keep up with your other hipster/trustafarian/dilettantes/other guys who like showing off. The payoff is nice after you have been a broke appearing guy for a few years. Later on you know you can do more and be more flexible and relax more knowing you have some dough to back you up. Oh, and it still not a "good time to buy a house" at least where I live. It is a good time to buy stocks however. Why? Low interest rates. House prices will fall some more as soon as interest rates go up. They are going to go up.

11. freak80 Follow Befriend (4) 52 threads 4,416 comments Corning, NY Premium

    18   12:17pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Protected   Or just move to Houston or Dallas. There are plenty of decent jobs along with low housing costs.

12. BoomAndBustCycle Follow Befriend 28 threads 351 comments

    19   12:51pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   wthrfrk80 says The time to buy is when there's blood in the streets. You realize "blood in the streets" is a metaphor... If you are actually waiting to buy when the streets are running with rivers of blood, i think you may be a waiting a long while.

13. freak80 Follow Befriend (4) 52 threads 4,416 comments Corning, NY Premium

    20   12:59pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Protected   BoomAndBustCycle says You realize "blood in the streets" is a metaphor... Yes. Hmmm...where's Apocalypsefuck?

14. bmwman91 Follow Befriend (7) 37 threads 1,526 comments Mountain View, CA bmwman91's website Premium

    21   1:01pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Protected   1sfrenter says For the average person, by the time you pay rent, food, gas, etc. how are you gonna be able to save 200K? It isn't THAT hard. It'll take 10 years of diligent saving and resisting the urge to indulge in your various "wants," but it is perfectly doable. Very few people can resist the urge to splurge on things like expensive cars, expensive electronic gadgets and expensive dining on a regular basis. Even fewer think that they can "survive" if they have to rent & save for 10 years, despite the fact that they would probably reap long-term rewards. Drive an older car that you paid cash for, have roommates until you are 30 or married, and develop creative hobbies. Spending money isn't a hobby, but it's all a lot of people have to do to kill time until they die. That, and TV. This is all with respect to the Bay Area, BTW. There are places in the US where buying actually is cheaper than renting. No so, around here. The gap is narrowing thanks to rent hikes, but it is still a gap in all but the trendiest areas.

15. 1sfrenter Follow Befriend (1) 11 threads 224 comments San Francisco, CA

    22   1:13pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   clambo says You save the $200K this way You forgot: "don't have kids". Now that our kids are school-aged (and in public school) we have been able to save quite a bit. But childcare and preschool costs alone are exhorbitant - easily $1200 month until the kids go to kindergarten.

16. freak80 Follow Befriend (4) 52 threads 4,416 comments Corning, NY Premium

    23   1:33pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Protected   bmwman91 says Spending money isn't a hobby, but it's all a lot of people have to do to kill time until they die. That, and TV. Agree. Lots of time and money wasted that way. bmwman91 says There are places in the US where buying actually is cheaper than renting. Like where I live. Houses are cheap but the influx of natural gas workers has driven up rents.

17. bubblesitter Follow Befriend (5) 10 threads 2,329 comments

    24   1:38pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   1sfrenter says Now if you have 200K saved, that's a whole 'nother story. But if you have 200K saved you are probably in the top 5-10% of the population, as the bottom 90% are living paycheck-to-paycheck. Hell,I am hoping to be top 5% to 10% cuz after all I am frequenting pat.net. Oh,and I'll pay 400K cash rather than getting a mortgage. :)

18. bubblesitter Follow Befriend (5) 10 threads 2,329 comments

    25   1:39pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   bmwman91 says "It's CASH or fuck you, America!" Haha. AF Tony Manero. Let's march.

19. David9 Follow Befriend (3) 28 threads 747 comments Tarzana, CA

    26   1:43pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   It can't be a good time to buy in the 101 corridor of the San Fernado Valley. It's Thursday, and the banks have listed at most 6 new properties > 300K in Woodland Hills, Tarzana, Encino, and Sherman Oaks. (People don't list anymore unless it's a Realtor trying to flip) I just looked it up, there are 1.77 million people in the Valley. Does this seem awry? Or am I a crazy cat?

20. bmwman91 Follow Befriend (7) 37 threads 1,526 comments Mountain View, CA bmwman91's website Premium

    27   1:48pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Protected   David9 says San Fernando Valley Hey, I'm ummm here with your pizza. Nice shoes......unnn tsss unnnn tsss chicka-wow-wow!

21. David9 Follow Befriend (3) 28 threads 747 comments Tarzana, CA

    28   2:00pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   bmwman91 says Nice shoes Dallas has the great shoes. Made a relatively sound RE decision there by reading Patrick.net :-)

22. Goran_K Follow Befriend (4) 25 threads 1,517 comments Laguna Beach, CA Premium

    29   2:08pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Protected   David9 says It can't be a good time to buy in the 101 corridor of the San Fernado Valley. It's Thursday, and the banks have listed at most 6 new properties > 300K in Woodland Hills, Tarzana, Encino, and Sherman Oaks. (People don't list anymore unless it's a Realtor trying to flip) I just looked it up, there are 1.77 million people in the Valley. Does this seem awry? Or am I a crazy cat? It's insane. I don't know why inventory is so low, but it's putting the market at a standstill. In Orange County sales are down to 1995 levels because there simply aren't enough homes on the market.

23. bayarearenter Follow Befriend 3 threads 15 comments San Francisco, CA

    30   2:13pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   1sfrenter says clambo says You save the $200K this way You forgot: "don't have kids". Now that our kids are school-aged (and in public school) we have been able to save quite a bit. But childcare and preschool costs alone are exhorbitant - easily $1200 month until the kids go to kindergarten. You forgot: don't take out loans for school If you financed college or any kind of graduate school in the last ten years you are likely burdened with significant debt

24. David9 Follow Befriend (3) 28 threads 747 comments Tarzana, CA

    31   2:16pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Goran_K says It's insane. Aberration, absurd, crazy, demented, irrational, lunacy, madness, and unbalanced. Yep. Sure is a good time to buy a house in these areas!

25. 1sfrenter Follow Befriend (1) 11 threads 224 comments San Francisco, CA

    32   2:30pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Goran_K says I don't know why inventory is so low, but it's putting the market at a standstill San Francisco is the same. Nothing on the market. Either crap that's way overpriced and sits unbought or any decent place is underpriced and then everyone hawks about all the multiple bids.

26. Goran_K Follow Befriend (4) 25 threads 1,517 comments Laguna Beach, CA Premium

    33   2:39pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Protected   Sometimes I think, "Wow, the banks really won." The inventory is artificially low, anything decently priced is gone in days with multiple bids. I have 50% down (or more) in the range I'm looking at, but get beaten out by people who offer 10% to 15% over list on the decently priced stuff. One of them was a freaking FHA loaner. I may go into house hunting hibernation over the Summer and wake up in the Winter (ironic, I know).

27. bmwman91 Follow Befriend (7) 37 threads 1,526 comments Mountain View, CA bmwman91's website Premium

    34   3:07pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Protected   Goran_K says I may go into house hunting hibernation over the Summer and wake up in the Winter (ironic, I know). Yeah, same. I have no intentions of trying to compete with the idiot masses.

28. BayArea Follow Befriend (3) 49 threads 368 comments Oakland, CA

    35   3:09pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   bmwman91 says Goran_K says I may go into house hunting hibernation over the Summer and wake up in the Winter (ironic, I know). Yeah, same. I have no intentions of trying to compete with the idiot masses. I have a multiple offer pending right now (10 offers I'm told). If this is unsuccessful (it would be the 4th time now this year), I will join you guys. "Investing" by overbidding 10+ people is no way to invest.

29. clambo Follow Befriend (5) 1,070 comments Santa Cruz, CA

    36   3:36pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   1sfrenter has my sympathies. The idea might have been to follow my program before marriage. But, it's hard meeting chicks on my "extreme cheapskate wealth program". I know it's been a challenge but you CAN get them. I find a particularly rich vein of single girls in San Francisco, seems like straight males who are not Harvey Milquetoast are in demand.

30. bmwman91 Follow Befriend (7) 37 threads 1,526 comments Mountain View, CA bmwman91's website Premium

    37   3:49pm Thu 12 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected   clambo says seems like straight males who are not Harvey Milquetoast are in demand. Chicks wanted more sensitive guys that "listened & had emotions" for a long time. Well, they got them, and I don't think that they quite like it. They are finding that they actually just wanted someone that respected them, not someone that completely depends on them & has matching mood swings! I am not single, but the impression that I get from walking around SF and hitting bars there is that I wouldn't have any interest in the females there even if I WAS single. By the time you hit 28-30, most of the "normal" single people, that are reasonable enough to enter & maintain a stable relationship, already have. Thus, you are left with the princesses, career-first power-ladies & party animals.

31. Robber Baron Elite Scum Follow Befriend (3) 48 threads 480 comments Roslyn, NY

    38   4:05pm Thu 12 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike   "Why Now Is a Good Time to Buy a House" ...I'm not even going to bother with this one...

32. Robber Baron Elite Scum Follow Befriend (3) 48 threads 480 comments Roslyn, NY

    39   4:10pm Thu 12 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike   wthrfrk80 says The time to buy is when there's blood in the streets. Quoted by my Grandfather, John D. Rockefeller

33. freak80 Follow Befriend (4) 52 threads 4,416 comments Corning, NY Premium

    40   4:14pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Protected   I thought it was Rothschild...

34. Robber Baron Elite Scum Follow Befriend (3) 48 threads 480 comments Roslyn, NY

    41   5:19pm Thu 12 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike   wthrfrk80 says I thought it was Rothschild... They both made a similar quote. To be precise. "The way to make money is to buy when blood is running in the streets." -John D. Rockefeller Source: http://www.brainyquote.com/quotes/quotes/j/johndrock102029.html

35. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 170 threads 4,173 comments Premium

    42   5:26pm Thu 12 Apr 2012   Share   Quote   Permalink   Like (3)   Dislike   Protected   The time to buy is when the newspapers don't even bother to report Reatlor® suicides any more and people stop turning up at Reatlor® jumper events to cheer at them to leap to their deaths.

36. Robber Baron Elite Scum Follow Befriend (3) 48 threads 480 comments Roslyn, NY

    43   5:27pm Thu 12 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike   APOCALYPSEFUCK is Tony Manero says The time to buy is when the newspapers don't even bother to report Reatlor® suicides any more and people stop turning up at Reatlor® jumper events to cheer at them to leap to their deaths. hahahahaha +1

37. rootvg Follow Befriend (8) 1 threads 792 comments Danville, CA Premium

    44   7:29pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Protected   bubblesitter says 1sfrenter says IF you have cash, that is.If you don't have a ton of cash saved, then now is a good time to buy. +1. However it is hard to convince some one who wants to breath debt in and breath out debt and the assumption there was that with 12% and 18% rates price will be the same as today, good luck with assuming that price will remain same with rate hikes. Rates have to go up, and when they finally do it'll come with a vengeance. We can't, as a nation, continue to have old folks getting 1-2 percent on CDs at the bank while being raped at the grocery store and gas pump. Old people and the military are the Federal government's two primary constituencies. The situation we're in is politically untenable. It can't continue and it won't.

38. CrazyMan Follow Befriend 448 comments Campbell, CA

    45   8:01pm Thu 12 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike   You realize if they raised rates every bank in the US would almost instantly fail right?

39. bubblesitter Follow Befriend (5) 10 threads 2,329 comments

    46   8:03pm Thu 12 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike   rootvg says Rates have to go up, and when they finally do it'll come with a vengeance. As much as I wish,it is not going to happen any time soon due to continuing economic trouble. You are underestimating the nexus of our politicians and banks.

40. rootvg Follow Befriend (8) 1 threads 792 comments Danville, CA Premium

    47   8:07pm Thu 12 Apr 2012   Share   Quote   Permalink   Like   Dislike   Protected   CrazyMan says You realize if they raised rates every bank in the US would almost instantly fail right? Eventually, they will have to. I seem to remember something about Continental Illinois failing in 1984, after the late seventies and early eighties recessions were supposed to be long over. One would think we'll see some banks fail again in the next couple of years.

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