SRS Now is a good time to buy?

Discussion in 'On Topic' started by Maffy29, Jul 3, 2009.

  1. Maffy29

    Maffy29 Active Member

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    So people keep telling me that now is a good time to buy a house with all the stuff the government is offering? Here are my pros and cons:

    PROS:
    Just promoted at my federal IT job to GS-11
    $0 debt
    Single
    First time home buyer
    Government incentives

    CONS:
    Wary of a big and long financial commitment
    Single
    No more promotion opportunities at work. Would have to go outside the organization for a GS-12 promotion (probably somewhere in DC area).

    If I were to buy, it would be in the SW PA area (I work in downtown Pittsburgh).
     
  2. StopDrop&LOL

    StopDrop&LOL "Where The Elite Become Champions"

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    I am contiplating the same thing. I am a teacher, single, but in debt... not that much. Minus student loans, im only 2k in debt. I'll probably hold off for another year or two.

    I heard from some people on these boards that if you wait longer, you will be able to find better deals as real estate is expected to continue to drop. How relevant that is, i don't know. Just something i read in another thread.
     
  3. Vermincelli

    Vermincelli Banned

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    GET OFF MY LAWN!
    it's a toss up.

    We are having another wave of foreclosures so prices are still plummeting but as prices continue to tank and our government fucking up the economy, you are going to see interest rates go up.

    So the question is, will the price drops be more than what the higher interest rates will cost or should you go for one now before rates go up and just deal with the loss of value and hope that things level off and that the housing prices go back over market again.
     
  4. huntz0r

    huntz0r New Member

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    I'm buying now, I have a couple small chunks of debt but next year's tax kickback will take care of them. After that I will actually be able to save more money than I can now in my cheap apartment.

    To my way of thinking, just buy wisely (something likely to hold or increase in value), and as far as the cost, well you are living in it. Compare the amount of interest and tax you'd be paying on a home to the amount you're paying in rent now, chances are it's the same or less; and of course the interest is deductible. Plus the house is usually a bigger place and you can offset the cost by renting a room if you care to do so.

    Like Verm said the interest rates are going up (they've shot up a point since the first house I looked at a month ago -- back then, I could have gotten 4.75% with no points). A small difference in interest adds up fast both in the short and long term. I think here in Charlotte the dip in values has lagged the rest of the country; I don't know about your town.

    All that said, be sure not to buy something just to buy something, because you don't want to wake up a couple years from now stuck in a place you hate, or upside down by five figures. Shop carefully, do your homework on areas, comps, crime rates, etc. and find any and all incentive programs in your area to make the thing less expensive to do.
     
  5. Maffy29

    Maffy29 Active Member

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    Whoops I think I originally posted this in the wrong forum.

    Anyway, thats what I'm I'm doing. Right now I don't pay any rent because I'm still in Iraq, but I'm comparing it against what I was paying before I left. I am also eligible for a VA Home Loan too.

    The last thing I want to do is buy just to buy. I'm looking at houses in the $100k-$125k range and I'm not seeing too much. Maybe I'm just not looking in the right places.
     
  6. Crawling Dead

    Crawling Dead Gz-TeRRoR

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    In this economy, always negotiate. Banks will always offer you the highest interest rate they can to try and sucker you in. Always low ball them and go from there. Worst comes to worst, tell them you are going to a different bank that wont try and fuck you over, and they can have your money.

    I did this with a hotel, ended up staying for half price, which then turned to free when the hot tub broke, but thats neither here nor there.

    Negotiate
     
  7. huntz0r

    huntz0r New Member

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    Yeah, that's the range I have been working in as well. Don't get discouraged, it just takes time for the right house to come on the market. In two months of looking I only ever found three; the first one I lost the bid on and it later failed inspection with structural and other problems. The second I had to DQ because the backyard was a swamp. The third I currently have under contract and am thrilled with.

    If you can't find anything yourself, consider hooking up with an agent and having them do that work for you. That's what they are for. A sharp one may be able to tell you about stuff the day of, or even before it goes "officially" on the market as well as give you guidance about areas you may not have considered or know anything about.
     
  8. GregFarz78

    GregFarz78 New Member

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    Rates are going up but they are still pretty low, you are in the best position to buy now b/c you don't have to worry about selling a place. Find a motivated buyer and low ball them remember you have the power b/c you can do a 30 day or less settlement. Buy what you can afford on your salary alone and in a area with stable resale value.
     
  9. Darketernal

    Darketernal Watch: Aria The Origination =)

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    Care,for all is like a bonsai tree
    Now is the time to buy.
     

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