I know it's not personal. But I refuse. I'll wait until I can pay cash or the housing prices correct down 25%.
You may say these prices are low but I'm in a very low COL area with meager salaries, and taxes are about $7-9k/year. So it's not affordable at all.
I mean you just gotta stop buying avocado toast & completely ignore that housing rates are higher today than they were for people who bought 20-30 years ago.
Rates in the 90s (~30 years ago) were comparable to today, and in fact were higher for many years compared to the current rate. You're right that rates in the 00s were lower, but not by much.
Off topic, but rates during the Reagan admin were over 10 minus late 1986 & 1987, when they dipped to 9 for a bit.
Historically speaking, 7.5 is about average. Fed policy in the Obama & Trump years pushed rates crazy low, probably in ways that that are not sustainable.
I paid 8% on my first mortgage in the late 1990s. Younger people seem to be unaware that 2-3% rates aren't the norm.
Trying to time the market is foolish. If you can afford the payment, now is a fine time to buy. When rates go down, refinance.
Don't think of your home as investment. That's what got millions of people in trouble in 2008-09. Think of it as a place to live and hope it holds value or slightly increases. Imagine that you're not "throwing money away on rent".
Except a home IS an investment and that’s why I’d argue that people get in trouble because they attach their emotions to it. Too many people don’t refi or sell when the market is too hot.
Except a home IS an investment and that’s why I’d argue that people get in trouble because they attach their emotions to it. Too many people don’t refi or sell when the market is too hot.
Sheer stupidity. Yes, I should sell my house now at the top of the market so I can buy another overpriced house with an even higher interest rate.
Or maybe we should all sell and move into overpriced apartments for a few years, while our quality of life declines due to sharing walls/ceilings/floors with deadbeats and burnouts just so I can score an extra $100k today (a bunch of which I'll spend on rent) and then hopefully buy a home in a few years after the "eventual" decline.
I know it's not personal. But I refuse. I'll wait until I can pay cash or the housing prices correct down 25%.
You may say these prices are low but I'm in a very low COL area with meager salaries, and taxes are about $7-9k/year. So it's not affordable at all.
refusing to pay because you think the price is to high and not having the money to pay it and/or living comfortably after buying... are two very different things.
I know it's not personal. But I refuse. I'll wait until I can pay cash or the housing prices correct down 25%.
You may say these prices are low but I'm in a very low COL area with meager salaries, and taxes are about $7-9k/year. So it's not affordable at all.
You'll never own a home if you don't adjust to the market, houses are worth what someone is willing to pay, period. Interest rates of 6-8% now are higher than a year ago but two years ago rates were low ONLY b/c the government wanted to promote spending (kinda the way a cyclical economy works). Even still after a jump up to what they are now, they are still historically lower than the avg. compared to a decade ago.
I paid 8% on my first mortgage in the late 1990s. Younger people seem to be unaware that 2-3% rates aren't the norm.
Trying to time the market is foolish. If you can afford the payment, now is a fine time to buy. When rates go down, refinance.
Don't think of your home as investment. That's what got millions of people in trouble in 2008-09. Think of it as a place to live and hope it holds value or slightly increases. Imagine that you're not "throwing money away on rent".
This. If you can afford the payments and like the house, it's a good time to buy. You can always refinance later. And if rates go even higher, be glad you are in a house you can afford today. I'm locked in at 5.8% which was a tough pill to swallow at the time. If I were to buy today with the same lender, it would be 7.625%. Waiting would have been foolish.
First off, gotta say, the vibes here are awesome! Now, onto the topic at hand – selling houses fast. Who wouldn't want to crack that code, am I right? So, I checked out the link you dropped, and gotta admit, it looks pretty intriguing. Selling a house fast in Manchester sounds like a dream come true for many! But hey, let's keep it real – selling property ain't always a walk in the park. It's like navigating a maze sometimes, with twists and turns you never saw coming! Now, about that link you shared –
Whether you’re a creative wanting to move to the vibrant Northern Quarter from the suburbs or you’re desperate to get out of the city centre to the quiet streets of Worsley, then we can help you to achieve this.
– it's worth giving it a look, no doubt. But hey, always good to do your homework and explore all your options, right? After all, you wanna make sure you're getting the best deal possible. Can't be too careful in this game!
No I'm not. Are you against community and the middle class, bro?
Different dynamics in the Midwest. Average sale price is going up but these are not the same properties that sold 2-5 years ago. Houses that sell today are in far better shape than houses that sold back then. Fixers are less common today. The expectation that the house is in tip top shape, the expectation about appliances/brands, brickwork, ceiling height, etc. I just saw a $1.2M home built in the 40s that was probably the same price in 2012 for equal shape. A friend sold a house for $1.8M that was purchased 13 years ago for $1.1M but had a $450k rehab 3 years ago.
Foundations settle around here. Cracks develop all over the place. Windows, drywall, kitchen countertops all crack. These aren't new homes but they are in a very desirable area. My kids don't want to live anywhere else in the world and we have traveled a lot. Yearly maintenance is expensive to the point that you learn to be handy even if you didn't start out that way. Flippers hardly ever make money here. They think they do. They think they are smarter than the average bear but they ain't no Yogis. Occasionally, one finds a fool to buy that pig in a poke and overgeneralizes then loses it all in his second attempt.
I have a neighbor that built new 15 years ago for $1.2M. Today, that property is $2.7M So he made $1.5M a Realtor argued. Guy has been paying $20k/yr more in taxes than I do for many years. Yard is another $15k/yr. Home maintenance is about $25k min. Home insurance another $3-5k more than mine per year. That's $940k. Then add the obligatory rehab because you can't sell that 6000sqft+ property that has not been updated in 15 years: $450k. Any contractor out there shows up with a tablet and charges you up the wazoo for a property like that. All of a sudden, that $1.5M profit is shimmed down to about $100k. Sure, approximations - not exact. But it makes for a nice story to tell that your house went up 2x in 15 years. That money is not made, rather it is recouped. They paid it.
I am not saying that you have to accept current prices as actual market value, but the sellers do not enrich themselves. You add a high interest loan onto that and the picture gets far worse. Understanding pre-foreclosure letters explained can also help you see alternative opportunities. The good part is that you bank what you would have paid in rent.
That sounds like a wise approach. High interest rates combined with local costs and taxes can make buying unaffordable, so waiting until you can pay cash or until prices drop is a smart way to avoid overextending yourself.
This post was edited 51 seconds after it was posted.
I know it's not personal. But I refuse. I'll wait until I can pay cash or the housing prices correct down 25%.
You may say these prices are low but I'm in a very low COL area with meager salaries, and taxes are about $7-9k/year. So it's not affordable at all.
Similar here. Median home price in 2019 was like $330,000. Now it's over $500,000, and it's hard to even find anything that isn't a total dump for less than $400,000 or that isn't a trailer. This is what I consider to be a normal, nothing fancy town in Wherever, USA, population 35,000. There ARE high earners here, but most adults here are probably making $40,000 - $75,000/year. Even teaming up with another person, buying a home is not even realistic here. I think the average time on the market for a home now is over 100 days, and there are many homes on the market. Lots of realtors have left the profession too. Been pretty curious to see how this will play out over the next 1-5 years.
If the current administration enacts the proposed 50-year mortgage plan, you can look forward to prices getting even higher and to a future in which you can never afford to retire.
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