I currently own a small condo that has a very low interest rate on it, I did a lot of research and it looks like I can rent out the condo for enough money to cover the cost of the place. The problem is that I'm going to start a family in a year or two and the condo is just not big enough. The new place I'm looking at has 3 bedrooms which I don't currently have. So I"m kind of in this dilemma where I can easily sit out and happily live in my condo for cheap.....but probably in another year or two I'm going to have to buy a place. It looks like rates are definitely going higher in the next two years but I don't know what the effect is going to be on the prices though.....ie will this house be available for 200K two years from now but if interest rates are 2 or 3% higher then it seems like I'm not going to save much by waiting.....hence my current dilemma!
If you can afford the place for sale at the moment and aren't stretching yourself i.e. if you can't find a tenant for your condo for a length of time and have to run two places (which you have to take into consideration),then there's no reason not to buy. All the people saying hold on,the prices are going lower probably bought 15 years ago and will never move or are waiting for people to be literally giving homes away and even then will shit themselves in case they're not buying the exact bottom.
I think you are premature. What will do if your bargain house falls to $170K? Why are you picking a particular neighborhood? Sorry, but you seem really f*cked up when it comes to learning how to get a good deal on a house
I admit I don't know much about real estate, I'm an options guy so real estate isn't my forte. But I'm not looking to do any flipping and I've never tapped a cent of home equity and don't plan on doing it so the house dropping in value to 170 shouldn't be a total disaster.....but you're right I am premature. I do think this house will be cheaper the next couple years but interest rates will be up also....the rates are the thing that concern me.
well if you know interest rates will be up, then you will make a lot more money on Tbond futures, won't you??? Stop prognosticating and do your homework
What sort of help is that? If he knew that in a year or two it would drop another 25% he would possibly hold on but is also keen to lock in a cheap mortgage which he should do now.It appears he won't be able to have,in the future,a cheap house AND a cheap mortgage and is reaching out for a bit of assistance i.e. in the long run what is the best option and does anyone have any experience they are willing to share.
Unless the house is on the ocean (and maybe even if it is)....wait. Just trust me. I know the business better than I know my soul. Prices will go lower.
What % drop do you see happening from here? I too want to buy a home in texas but not for at least 6 months. I think its too early to buy at current values.