When SHOULD people start buying houses?
Well, if you are a Contrarian investor (which means you do the opposite of what other investors and the marketplace are doing) you would NOT wait to buy a house sometime in the future because that is what we all keep hearing from the ‘media.'
Case-Shiller, the general news media and all these other so-called experts are predicting that housing is going to lose even more value and want you to wait and buy later. Even Forbes magazine has jumped on the bandwagon. See a recent Forbes article just printed Dec 30th.
If these people were so smart they should have ‘predicted’ the housing bust in the first place but that’s another story.
My feeling is that people should buy a house, a car or any other major purchase in the following circumstances:
1) Buy when you NEED to;
2) Buy within your affordability;
3) Buy for the long term.
For too long people have been "influenced" by too many external forces. The fact remains that while it is true that some, or even many property values may go lower in the future, today does remain one of the best buying opportunities in generations.
People should be encouraged strongly to make good decisions to buy within their means at today's low prices, lock in long term rates around 4% and if the houses need repairs use the FHA 203k rehab loan program to fix them up properly. One of the most notable Contrarian investors is Warren Buffett would agree.
If people get away from the "flipping" mindset and buy for the long term within their means, their own quality of life and eventually their equity will certainly be enhanced.
If you don't buy now, you will be buying soon enough from the institutional investors who are once again buying (at deep discounts from the government, fannie mae, etc.) and preparing to resell at a profit of course. And when people do start buying, you will see both property values and rates move up pretty quickly and end up costing people dearly.
Searching Maryland Foreclosures and other Distressed property with the professional assistance of a Buyer Agent Specialist and a HUD 203k Consultant will go a long way towards getting the information you need to make good buying decisions.
People need to simply make better decisions and not try to 'time' the market. No one needs to buy at the very bottom and no matter how you look at it, we are certainly at or near the bottom in many areas.
Those areas that are prone to further significant declines should be illuminated so others will not be so negatively affected in their decision making. There are many good markets, good buying opportunities and people who simply need to buy a house. Pikesville, Owings Mills and Baltimore have many GREAT buying opportunities!
I say "buy a house today,
buy within your means and
buy for the long term" ...
... that is never a bad idea.
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