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Practical advice for today’s prospective homebuyers

By golfplan18   Follow   Fri, 20 Jul 2012, 6:52am   1,090 views   18 comments
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http://ochousingnews.com/news/practical-advice-for-todays-prospective-homebuyers

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1. golfplan18 Follow Befriend (2) 515 threads 114 comments Irvine, CA

   1   6:53am Fri 20 Jul 2012   Share   Quote   Permalink   Like   Dislike

2. Oil Can Follow Befriend 21 threads 125 comments Oil Can's website

   2   7:20am Fri 20 Jul 2012   Share   Quote   Permalink   Like (2)   Dislike   Don't buy! Wait for 8% mortgages to come back.

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

   3   7:32am Fri 20 Jul 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected   Wait until we pass Peak Oil.

4. FortWayne Follow Befriend (13) 102 threads 3,759 comments

   4   8:16am Fri 20 Jul 2012   Share   Quote   Permalink   Like   Dislike   Oil Can says Don't buy! Wait for 8% mortgages to come back. Realistically speaking this is the best advice. Although I think 6% to 8% is a normal range in a healthy market.

5. gregpfielding Follow Befriend (9) 43 threads 288 comments Danville, CA gregpfielding's website

   5   9:18am Fri 20 Jul 2012   Share   Quote   Permalink   Like (1)   Dislike   I tell buyers that they need to make their decision assuming that, ten years from now, their home is worth no more than what they paid for it. If, knowing that, they would still buy, then go ahead.

6. E-man Follow Befriend (31) 34 threads 2,542 comments San Jose, CA Premium

   6   9:26am Fri 20 Jul 2012   Share   Quote   Permalink   Like   Dislike   Protected   gregpfielding says I tell buyers that they need to make their decision assuming that, ten years from now, their home is worth no more than what they paid for it. If, knowing that, they would still buy, then go ahead. East Bay Real Estate Agent and Blogger Greg, That's pretty conservative. I'm willing to bet that home prices will be higher in nominal price 10 years from now. :)

7. E-man Follow Befriend (31) 34 threads 2,542 comments San Jose, CA Premium

   7   9:27am Fri 20 Jul 2012   Share   Quote   Permalink   Like   Dislike   Protected   golfplan18 says You did? How's that working for you so far? Come on, be honest. :)

8. E-man Follow Befriend (31) 34 threads 2,542 comments San Jose, CA Premium

   8   9:29am Fri 20 Jul 2012   Share   Quote   Permalink   Like   Dislike   Protected   FortWayne says Oil Can says Don't buy! Wait for 8% mortgages to come back. Realistically speaking this is the best advice. Although I think 6% to 8% is a normal range in a healthy market. Freedom 1789-2012 I'm sorry, but that's the worse advice I've heard in awhile. You might never see 8% mortgages again in your lifetime although I welcome it because it would make me a very wealthy man, or not. :)

9. gregpfielding Follow Befriend (9) 43 threads 288 comments Danville, CA gregpfielding's website

   9   10:13am Fri 20 Jul 2012   Share   Quote   Permalink   Like   Dislike   E-man says gregpfielding says I tell buyers that they need to make their decision assuming that, ten years from now, their home is worth no more than what they paid for it. If, knowing that, they would still buy, then go ahead. East Bay Real Estate Agent and Blogger Greg, That's pretty conservative. I'm willing to bet that home prices will be higher in nominal price 10 years from now. :) Learn from your victory. Prosper from your failure. It is conservative. And a reasonable worst-case scenario. Importantly, I think it really makes people think hard about how good of a fit the property is for them and about how much "making money" is a part of their consideration. For example, a young couple wanting to start a family is probably better off waiting, saving, and buying a 3-bedroom home in a year or two then a 2-bedroom condo today.

10. Oil Can Follow Befriend 21 threads 125 comments Oil Can's website

    10   10:16am Fri 20 Jul 2012   Share   Quote   Permalink   Like   Dislike   FortWayne says Realistically speaking this is the best advice. Although I think 6% to 8% is a normal range in a healthy market I think 6% to 8% is a good range.

11. Repubthug Follow Befriend (1) 3 threads 42 comments

    11   10:35am Fri 20 Jul 2012   Share   Quote   Permalink   Like   Dislike   gregpfielding says For example, a young couple wanting to start a family is probably better off waiting, saving, and buying a 3-bedroom home in a year or two then a 2-bedroom condo today. hmm i should have read this comment last year i bought a condo last sept since we had our first kid i hope to move up to a family home in a couple of years..what are my chances? using heloc as downpayment for a family home

12. gregpfielding Follow Befriend (9) 43 threads 288 comments Danville, CA gregpfielding's website

    12   1:49pm Fri 20 Jul 2012   Share   Quote   Permalink   Like   Dislike   Repubthug says i bought a condo last sept since we had our first kid i hope to move up to a family home in a couple of years..what are my chances? using heloc as downpayment for a family home Good luck thug. Part of the problem you'll face is that selling, buying, and moving costs eat up a good 8-10% of any price appreciation you might have in your condo. Home prices could move up or down over the next few years, depending mostly on housing supply. You may end up being stuck in a few years if supply begins to build again. Point is, if you really want a house, I would get out of the condo as soon as you feel like you can make the move. No point in waiting for a better time. And by waiting you run the risk of being trapped. If you can find a way to move up, I say do it.

13. REpro Follow Befriend (1) 22 threads 469 comments San Jose, CA

    13   8:00pm Sat 21 Jul 2012   Share   Quote   Permalink   Like   Dislike   E-man says You might never see 8% mortgages again in your lifetime although I welcome it because it would make me a very wealthy man, or not. :) Inflation don't make people wealthy. Return above inflation do.

14. E-man Follow Befriend (31) 34 threads 2,542 comments San Jose, CA Premium

    14   8:15pm Sat 21 Jul 2012   Share   Quote   Permalink   Like   Dislike   Protected   "For example, a young couple wanting to start a family is probably better off waiting, saving, and buying a 3-bedroom home in a year or two then a 2-bedroom condo today." Greg, I would advise them to consider buying the 2-bedroom condo if it can cashflow positive with 3.5% down, but then I'm not familiar with the market in your neck of the woods. However, not everyone is cut out to be a landlord so it's a case by case basis. ;)

15. E-man Follow Befriend (31) 34 threads 2,542 comments San Jose, CA Premium

    15   8:20pm Sat 21 Jul 2012   Share   Quote   Permalink   Like   Dislike   Protected   Repubthug says gregpfielding says For example, a young couple wanting to start a family is probably better off waiting, saving, and buying a 3-bedroom home in a year or two then a 2-bedroom condo today. hmm i should have read this comment last year i bought a condo last sept since we had our first kid i hope to move up to a family home in a couple of years..what are my chances? using heloc as downpayment for a family home Thug, Meriwest Credit Union is currently offering HELOC for 1.99% with interest only payment. Borrowing $100k and your monthly payment is only about $166/month. Unless you paid cash for your condo, I don't see $100k in HELOC. :0)

16. E-man Follow Befriend (31) 34 threads 2,542 comments San Jose, CA Premium

    16   8:22pm Sat 21 Jul 2012   Share   Quote   Permalink   Like   Dislike   Protected   REpro says E-man says You might never see 8% mortgages again in your lifetime although I welcome it because it would make me a very wealthy man, or not. :) Inflation don't make people wealthy. Return above inflation do. Of course inflation doesn't make people wealthy, but it would make RE investors, who locked in 4.5%-5% fixed interest rate, very happy. :0)

17. REpro Follow Befriend (1) 22 threads 469 comments San Jose, CA

    17   8:55pm Sat 21 Jul 2012   Share   Quote   Permalink   Like   Dislike   E-man says Of course inflation doesn't make people wealthy, but it would make RE investors, who locked in 4.5%-5% fixed interest rate, very happy. Personally I prefer 5/1 or 7/1 ARM. Equity is faster build-up and higher cash flow for today. If inflation comes, will be breeze to ref. cash-out or pay off loan.

18. E-man Follow Befriend (31) 34 threads 2,542 comments San Jose, CA Premium

    18   11:03pm Sat 21 Jul 2012   Share   Quote   Permalink   Like   Dislike   Protected   REpro says E-man says Of course inflation doesn't make people wealthy, but it would make RE investors, who locked in 4.5%-5% fixed interest rate, very happy. Personally I prefer 5/1 or 7/1 ARM. Equity is faster build-up and higher cash flow for today. If inflation comes, will be breeze to ref. cash-out or pay off loan. Can't really argue with your strategy there. I've been giving a lot of thoughts to using 5/1 ARM on a couple of properties that I'm going to refinance soon. :)