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So how do I know when the time is right to make my move? Should I just wait until those $500-$700K suburban nearly-identical homes all through the valley drop another 10%?
10% would be the same trap you fell into before...
More like down to 300K would be a safer bet...
The rent is reasonable for what and where it is, but I still feel like I'm throwing thousands down the drain instead of building equity.
if prices continue to fall (as they have for the last 4 out of 5 years) you will be losing equity, not building it.
seems you may very well make the same mistake as last time.
You really think the $500-$600K houses in, say, Cambrian are going to drop by 40%?
You really think the $500-$600K houses in, say, Cambrian are going to drop by 40%?
you haven't learned anything.
i encourage you to buy a house because in your case it's better to learn things for yourself than to learn from others.
Don't think of rent as just throwing money away. I really wish that simple idea would go away, it's much to simple a way of looking at home ownership vs. renting.
A lot of homeowners wish they weren't throwing money away on an asset that is depreciating in value. There can be financial advantages to paying rent, especially if rents in your area are cheaper than an equivalent home after including property taxes/insurance.
You really think the $500-$600K houses in, say, Cambrian are going to drop by 40%?
you haven't learned anything.
i encourage you to buy a house because in your case it's better to learn things for yourself than to learn from others.
Hey man, I was trying to ask a legitimate question. Do you really see houses in $500-$600K range in Cambrian dropping to $300-$400K?
I don't know as much about this as you do - which is why I'm here asking questions. I'm sorry if that somehow offends you, but I don't really appreciate "you haven't learned anything" comments. It's not helpful and it makes you come across like an asshole.
So, again, from a relatively young guy who's trying to make the right financial decisions for his family, I'd like to know a couple things.
1) Why you think the housing market will fall that much.
2) How to know when it makes sense to buy? I read so many differing opinions on this...
3) With real estate prices in the Bay Area being so high historically, and demand being relatively strong compared to other communities, to what degree is the area "protected" by relatively low unemployment and relatively high salaries?
I'm honestly asking for help here - not trying to judge your worthiness or something.
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Hey guys, you helped me out a lot last year and I was able to escape from a tricky situation unscathed. I sold my 1br/1ba condo without having a short-sale on the record based on your advice.
My wife and I needed more room since we were having a baby in January, and so we're currently renting a 3br/2ba house with a pool in a great neighborhood. The rent is reasonable for what and where it is, but I still feel like I'm throwing thousands down the drain instead of building equity.
I'd like to buy a reasonable starter home in the future, and I should be able to scrape together 10% down myself, and possibly get some family assistance, depending on the total cost.
But even decent starter homes in the South Bay in good neighborhoods are $500k+, which means a 20% downpayment is $100k.
Having been burned on my condo, I'm naturally cautious. Also, I'm very comfortable in my rental, my family enjoys it, and it's in a great neighborhood I could never afford to buy into. (Rent is $2,390 a month, house appraises at $795,000 on Zillow and was appraised last year for $850,000 for refi purposes by the owner).
So how do I know when the time is right to make my move? Should I just wait until those $500-$700K suburban nearly-identical homes all through the valley drop another 10%? Should I wait until inventory is lower? Or average time on the market is lower? What do I look for?
Compounding the difficulty, we're probably going to try and have another baby in two years, which would be fine in our current house as well - but since 2 kids in day care costs more than my wife makes, our income will probably change a bit in that time frame.
Any advice is appreciated guys.