is there ANY reason to buy now?

J

joeldo_IHB

New member
Potentially moving to Irvine next spring. Currently own a home in midwest, but very new to thinking about the real estate bubble, and no experience with the SoCal bubble.



Husband, wife, three young kids (none yet in school), small dog. I apologize if this is too basic of question or oversimplified, but is there any reason to try to buy something right now, or is the generally accepted view that one should wait for the market to continue to fall, and rent in the meantime? Are there real deals out there? Please give me your take on, "if I were you, I would . . . " Thanks!
 
Family is always a good reason to purchase. but if you are doing it for the sake of purchasing a "house" then I think that is the wrong reason. If you plan to be here for more than 5-7 years then it will probably be a worthwhile venture. Just be sure to purchase a house that is "small enough" to give you what you need. As you will probably stand a good chance of losing your down or a significant portion of it. Think of this way... you purchase a 500k home, in the preceeding 5 years it devalues 30% or about 150k.... You put 100k down. If you walk away you'll most likely be 50-60k underwater. If you REALLY work on getting another 20% paid off in 5 years you just might be positive.



there are several combinations on how to do this.... but we need more specifics. What do you have in mind?

Location?

Size?

down?

etc. etc. etc.



-bix
 
I think in reading your reply and other posts, I've convinced myself not to buy. We have tended to move a lot, and I'm simply too risk averse to jump in at this point. That and no where near enough down payment!
 
[quote author="joeldo" date=1226746121]We have tended to move a lot, and I'm simply too risk averse to jump in at this point. That and no where near enough down payment!</blockquote>
You had the answer all the time.



Good luck on your move to Irvine... and you really need to hit up IrvineRealtor.
 
Based on the fact that you have a family, you are probably risk averse. So it is all relative in terms of whether you should buy now.



First, how are you paying? If your getting a mortgage like 99% of people, what kind? If you cannot afford a 30 year fixed now on a house in irvine, forgetabout it. Even if prices go down, interest rates must inevitably go back up and will go back to over 20%. If your making payments for 30 years and moving to irvine for a 1 year contract with some upstart company you better think long and hard about the risks.



The only reason to buy before 2009 is because there will be no more loans, period. Its over. 25% even if you have the best credit. Of course, if this happens, home will be significantly cheaper, with a maximum 55 cents on the dollar from today in denial prices.



Make a bunch of low ball offers in irvine at a price YOU KNOW FOR SURE you can afford.
 
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