This is the primary reason i remain on the sidelines & have been fighting temptation to leg in again. Ive been involved in speculation,rentals,multi families since early `90`s and have been pleased as punch with results despite the elbow grease & time consumption as i don`t mind getting my hands dirty. I`ve legged out on everything except primary res & 1 multi family unit but have been reluctant this time around as i`m aware of what litigation costs to battle the tax man....& we are just scratching the surface on whats to come with legacy costs/entitlements...there is just no way around it.
================ Good warnings Bear Stearns is [or was] plenty liquid/universal. New Orleans[nickname NO] is plenty liquid/LOL; but some people dont like to live below ''sea level'', right near the sea/below sea level..........................................Some do. True, some do buy payments; but even that may be better than rent.Not a prediction.Some people think a 10 year or 30 years worth of payments means you have to take 30 years. to pay for it.LOL Well it takes all kinds to make a market. Some did well when interest rates were 10%, but again not a prediction .LOL. Wisdom is profitable to direct.
like the man said there's owners and there's renters and after 20 years of being an owner I found out I am a renter I'd much rather call the landlord than spend the weekend at Home Depot or looking through the yellow pages for a contractor When I had kids we needed a lot of room but now it is just me 2 bedrooms (one for sleeping one for trading) 1 bathroom (I share with nobody) A nice living room (I never use) And a great kitchen (more room than my old house had) all things considered (mainly return on equity you can get on what would have been the down payment) over 30 years it comes out about the same financially depending on which way housing prices go. up and you would have been better buying, down better to rent. not really a financal decision just a lifestyle decision If I had a wife and 3 kids, I'd be a buyer funny thing is, we rented for many years and somehow always got a great deal on some kind of out of the ordinary house one time, 5,000 square ft on 43 acres for $240 a month. Just one of those deals where the little old lady got too old to live out in the country and wanted to rent to a nice family. But when rates hit 10% I wanted to buy. She and I both cried when we moved out. Biggest mistake I made was not taking out an adjustable. I wanted a fixed rate, because I had many bad memories. Now same thing. I like rates here. That's good enough for me. 30 year fixed.
This is a great encapsulation of why I'm not buying, despite my parents being after me to buy. Also, I like being mobile and able to move around if I want to.
He's likely right. Mother in law just bought a condo and she was out bid on a few and raise her bid to get the one she got. Buyers are coming back into the market b/c prices are so low. She paid 63k for a condo that sold for 140k a few years ago.