Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Predicting the bottom of the market is not rocket science it is only mathmatics. When the fundementals begin to make sence again people will begin to invest. It is the assumption of appreciation that caused the problem in the first place. It is exactly the same thing that happened in Japan in the 80's and they still have not recovered because the market has not been able to function freely. The market will stop falling when the prices get low enough. The more the goverment interferes with bailouts trying to keep prices artificialy high, the longer it will take. When you can buy a house and rent it with a 10-12% return, then the market will be fairly priced. The only people who think now is a good time to buy are real estate agents and mortgage brokers, the same people who had a hand in causing this problem. When they tell you they are not making any more land, ask them if they are making land in Japan where the market has been declining for 25 years.
My feelings parallel Jim's. I, too, think that letting a free market operate like a free market is the way to bring prices in line. There are buyers out there, and they're willing to wait it out. So let's get it over with, so life can go on. I'd rather it go on next year or the year after than in 25 years.
(Nope-- didn't study at the U of Chicago. My last degree was from that other of U of C-- swimming pools, movie stars. )
I couldn't agree with you more! Your analysis is 100% correct. Any type of government intervention is only going to make matters worse and prolong the inevitible price corrections that are happening right now.
So housing is fairly priced when investors can find someone else to pay their mortgage? I disagree. One should be a homeowner, not a slave to a landlord.
So housing is fairly priced when investors can find someone else to pay their mortgage? I disagree. One should be a homeowner, not a slave to a landlord.
Are you a slave to the supermarket when you buy food?
Are you a slave to the textile plant when you buy clothes?
"Throwing money away on rent" is the second biggest crock right behind "they ain't makin' more land".
One should ask "why throw money away on a good that'll likely lose value?"
So housing is fairly priced when investors can find someone else to pay their mortgage? I disagree. One should be a homeowner, not a slave to a landlord.
See, this type of response is what gives realtors a bad name. No one SHOULD be anything. (whether owning or renting). What might be appropriate for YOU might not be for someone reading this post.
If owning a home is appropriate for you then good for you. If someone is content renting, then all the power to them.
One should ask "why throw money away on a good that'll likely lose value?"
How do you define value? Is value universal?
I spent all last weekend swinging a mattock busting up a 40' long planting bed along my back fence. It was backbreaking work. The North Carolina red clay, and builder fill material was tough to break up and to amend with organic material but I did it. I now have a beautiful bed of shrubs, flowering perennials, and a small vegetable garden to enjoy. I have been looking forward to having my own garden to tend to for years. The value I get from having that now is immeasurable. I get a thrill out of going out before work each morning and draining a few gallons of rainwater from my rain barrel to give my plants a drink. I look forward to getting home on Friday and mowing the grass on a cool spring evening as the sun goes down. Tending to my yard and having the freedom to landscape it how I want is something I could not put a dollar figure on. It is also something I didn’t have the freedom to do and enjoy when I rented. Purchasing a home isn't for everyone, and everyone doesn't purchase a home for the same reasons. I get immense value from my home everyday not just at the closing table. It isn't about the presence or absence of a perceived future financial benefit. It is about living a life the way I want and doing the things I enjoy. For me, owning my own home affords me the opportunity to do the things I enjoy most.
So housing is fairly priced when investors can find someone else to pay their mortgage? I disagree. One should be a homeowner, not a slave to a landlord.
I think this belief is part of our current mess. Some people just aren't responsible enough to be homeowners. Somewhere along the line, some people never learned the basics of how to budget and financial planning. The historical average is 64% of Americans are homeowners, the rest renters.
Renting is not a bad thing. Would I love to see more affordable homes for low income families, absolutely yes, but owning a home is more than just being able to make a mortgage payment.
Investor's aren't the enemy. They a necessary group in a capitalist society. Investors are turning around what has been a somewhat dilapidated downtown here in Salem, which means WE ALL get to enjoy a better downtown environment. Their risk needs to come with a reward for them which is money. Citizens get a nicer looking downtown area. I don't know too many businesses that operate without a profit (although I have had those clients where I seem to get paid $1 an hour after all was said and done).
I think to citizens that live happily within their means is more important than whether or not everyone owns a home.
Last edited by Silverfall; 04-25-2008 at 02:14 PM..
Reason: error
I spent all last weekend swinging a mattock busting up a 40' long planting bed along my back fence. It was backbreaking work. The North Carolina red clay, and builder fill material was tough to break up and to amend with organic material but I did it. I now have a beautiful bed of shrubs, flowering perennials, and a small vegetable garden to enjoy. I have been looking forward to having my own garden to tend to for years. The value I get from having that now is immeasurable. I get a thrill out of going out before work each morning and draining a few gallons of rainwater from my rain barrel to give my plants a drink. I look forward to getting home on Friday and mowing the grass on a cool spring evening as the sun goes down. Tending to my yard and having the freedom to landscape it how I want is something I could not put a dollar figure on. It is also something I didn’t have the freedom to do and enjoy when I rented. Purchasing a home isn't for everyone, and everyone doesn't purchase a home for the same reasons. I get immense value from my home everyday not just at the closing table. It isn't about the presence or absence of a perceived future financial benefit. It is about living a life the way I want and doing the things I enjoy. For me, owning my own home affords me the opportunity to do the things I enjoy most.
I agree with part of what you're saying. As a homeowner (who happens to be in Raleigh as well), I was able to install a tankless water heater and a solar powered generator to offset some of the utility bills. Having a garden out back also saves me a tiny bit of money in groceries. There's value in that, naturally. Both on living expenses and to a lesser extent, personal satisfaction.
One can mow their rented house's lawn and grow a garden in many cases. I have friends who are renters who are allowed to do pretty much anything save for removing walls.
We are too close to the top, however, for there to be any monetary value for most homebuyers. The "deals" people are able to get are nothing compared to the grand savings coming down the pike. For someone without a lot of cash wishing to stay a looooong time in their house and truly enjoy it, it's not a bad idea to buy. For anyone else, I would suggest renting without exception. OK, the exception is an over 50% from previous mortgage amount markdown for a foreclosure property, which doesn't fit the triangle's reality (yet).
I was using that quote facetiously to offset the patently ridiculous "slave to landlord" shtick.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
)
