I got my car for 0% for the life of the loan without even having to ask. The housing market shot up in Phoenix due to high demand and low supply. It was also caused by jerk investors from California coming in and buying up houses and then selling them. Cheap houses went quickly to the rich investors who then turned around and sold them at a much higher price. It was right up there with scalping tickets. Nothing had actually increased in real value. Then the builders got going very quickly which increased supply. So now you can either buy a used house for $200k plus or buy a bigger brand new house for less within just miles. People just refuse to accept that their house is not worth what they're selling it for. There's the appraised value and then there's what people will actually pay. There's no shortage of used homes for sale because they're so overpriced and they're not fooling anybody. I'm currently getting the paper work finished up to buy a brand new house for $150K. If we had bought it earlier it would have been about $15K less and it's not even built yet so new home prices do go up quickly from planning to completion. I don't see house prices dropping per se. I see the market just correcting the stupid in many areas. Buyers are realizing they've been had and are refusing to buy until the price comes down to something reasonable. I don't really have time to wait so I just went straight to the builder and saved a lot of money.
i live in forest hills queens [a part of new york city] the prices have been pretty steady in the past few months Manhattan is still going up i think but not that much
give it another 6 months to a year you can look at zillow.com to see hw much prices have fluctuated in your area over the past 10 years
It is always a good time to buy real estate, provided you are educated in the marketplace. If you know how to find deals, negotiate and be creative, there is always opportunity to buy real estate. Up and down markets don't affect good investors.
there is always time, but a surplus in the market means that it is better for those of us who are looking to buy right now...I plan on getting a better mortgage than what I would have gotten a year ago, also, I am now looking at 4-5 bedrooms as opposed to 3-4....
um well if you bought real estate in florida in the last year or so you might be eating a dick for the next 3 or 4 years
what does buying real estate have to do with you eating dick? (not that I really want to know what you do in your personal time)
We did the math and found out we could save 13,000 in 15 years just by paying an extra $65 a month on our mortgage. If we didn't pay that extra bit of cash we'd owe a lump sum of 25,000 after 15 years. We'll also cut a few years off the time it will take to actually pay off the loan. We'll actually be looking to pay an extra $100-$200 a month on the mortgage. When it comes to saving bundles of cash on a house it's no so much about getting a good price or interest rate as it is about paying it off as quickly as possible. If we just paid the minimum for our house for 30 years we'd have paid about 432,000 for a 152,000 house. That really eats away at any profit we would make if we sold it after we paid it off.
interest is a killer I hoepfully will just buy my house out right when I finally buy one, I havn't borrowed money for anything since I left college. My truck, boat etc all paid in cash. I might not have as nice of stuff as my neighbors but in the end I think its worth it In beginning of most mortgages you are paying at least 50% of just interest, its crazy people borrow 300k to buy a house and are paying like $1500 a month in interest but they think they are smart becasue they are not throwing away money renting
Quick bit of advice Kalvin, be sure to specify that they need to do all grounding to the power company's ground, so that you don't have to worry about grounding loops. Also, if you plan on getting a finished basement, get several phone and cable hook ups, even if you don't think you'll need them. It costs less to put in 3 or 4 when the house is being built than to have even one added after you have a finished area with insulation under ground.
The interest is money that's thrown away but you own a piece of property. All that interest is tax deductible as well so for the next several years I probably won't owe much of anything to the government. Our apartment right now costs around $600 a month so staying in it allows us to save up and pay off other things. But we need a bigger place and a two bedroom apt will up the bill to at least $800 a month which isn't much less than the interest of the mortgage. I'd rather throw away $800 a month in interest on a nice house than thow away the same amount on rent. Even if you could save up $1000 a month it would take at least 10 years before you could get into a house. Some things are just worth going into debt for.
I have some friends that just rejoiced in paying off their mortgage...however, in order to still enjoy the tax benefits, they mortgaged their house for 3%...then invested the money at about 12%!!! I hope someday that the housing bubble is like this again and I am able to do that... btw...thanks for putting me on ignore ferret!!! Now everyone can laugh about the responses I made to your post! (still don't want to know what you do in your private life..)
yeah but then there is also taxes and insurance, which are kind of bitch down here even if you can deduct your interest $1500 * 12 = $18000 in interest a year if you are getting taxed at 20% you save $3600 on taxes, you might be paying close to that much property taxes if I could buy a place for 150k it I would do it probably in heart beat, but loans people have been taking out to buy places where I live are just insane, at least to me Oh yeah don't forget, you can put money in CDs and mutual funds and earn over 5% on it, so not only are you putting money into the house, your taking it from where it could earn interest
That's awesome. Our last bit of credit card debt is sitting at 0% until June. The money is in the bank collecting 4.5% APR. Over the past two years I've saved who knows how much in interest just because I have rediculously good credit. Banks couldn't stop sending me blank 0% checks and my credit cards have quite high limits. When I get into my house the only non 0% debt I'll have is student loans and the house. Some of the debt I have is actually on loan to other people at a higher interest rate than I'm paying. We'll see where I'm at in five years.
My wife and I only have 1 credit card, which we pay off every month early...we have really seen the kick backs from it as well.....they keep wanting to up our limit, but I keep it fairly low, since we really don't need it.