J
jpmorganfunds_IHB
Guest
Seems like some bitter renters that can't afford a house at ANY price.
Time to buy? Depends on whom you ask (OC Register Article)
- Thread starter CupertinotoIrvine_IHB
- Start date
NEW -> Contingent Buyer Assistance Program
no_vaseline_IHB
New member
If you are making that snarky comment toward me - save your keystrokes.
I rent, strictly because after I do the math, it's the most cost effective thing I can do, and it's not. even. close.
But if somebody can afford $7K a month to live in Irvine or Coto or where ever, who am I to critisize?
I rent, strictly because after I do the math, it's the most cost effective thing I can do, and it's not. even. close.
But if somebody can afford $7K a month to live in Irvine or Coto or where ever, who am I to critisize?
no_vaseline_IHB
New member
Frankly, I think both of you were taking a shot at me.
There are folks sitting on the sideline who desire to own a home (and currently don't) and have the means to pay a standard am fixed mortgage. There aren't very many, but they do exist. The market in SD is more "mature" than in the OC. They've already gotten socked, if it goes down another 20% my brother doesn't care. He's not moving.
I'm not angry about anything. I'm sitting tight in my under market rent SFH eating popcorn, taking occasional trips out to look at the slums of Coto and Irvine and Newport for potential neighborhoods to move into.....posting on an internet blog.
There are folks sitting on the sideline who desire to own a home (and currently don't) and have the means to pay a standard am fixed mortgage. There aren't very many, but they do exist. The market in SD is more "mature" than in the OC. They've already gotten socked, if it goes down another 20% my brother doesn't care. He's not moving.
I'm not angry about anything. I'm sitting tight in my under market rent SFH eating popcorn, taking occasional trips out to look at the slums of Coto and Irvine and Newport for potential neighborhoods to move into.....posting on an internet blog.
IrvineCommuter_IHB
New member
<p>Just for variety sake, I am eating cheetos right now.</p>
<p>My view is that there is no "right" or "wrong". There are many reasons to buy and equally many reasons to rent. Economics and housing prices may skew the analysis one or the other but that does not mean that one is "wrong" to take the opposite view. Personally, I see no economic reasons right to buy now but that does not mean I would not want to live in a SFR someday. Conversely, while I believe that people who buy now are making a financial mistake (i.e. buying tech stocks in 2000), who am I to say that they will not be happy with their purchase. For me, one should never buy a house in order to make money but one should be careful that the house does not become a money pit. </p>
<p>It is interesting to hear the views from both sides. I thinking renters, like me, are sick of family and friends who openly mock us for not buying. I think a lot of the people who bought in 2005-2006 fall into that trap where people kept saying to them, prices are never coming down and thus one needs to get in now. The opposite is true now and the question is whether we have hit the bottom or is the worse yet to come. </p>
<p> </p>
<p> </p>
<p>My view is that there is no "right" or "wrong". There are many reasons to buy and equally many reasons to rent. Economics and housing prices may skew the analysis one or the other but that does not mean that one is "wrong" to take the opposite view. Personally, I see no economic reasons right to buy now but that does not mean I would not want to live in a SFR someday. Conversely, while I believe that people who buy now are making a financial mistake (i.e. buying tech stocks in 2000), who am I to say that they will not be happy with their purchase. For me, one should never buy a house in order to make money but one should be careful that the house does not become a money pit. </p>
<p>It is interesting to hear the views from both sides. I thinking renters, like me, are sick of family and friends who openly mock us for not buying. I think a lot of the people who bought in 2005-2006 fall into that trap where people kept saying to them, prices are never coming down and thus one needs to get in now. The opposite is true now and the question is whether we have hit the bottom or is the worse yet to come. </p>
<p> </p>
<p> </p>
irvine123_IHB
New member
"one should never buy a house in order to make money but one should be careful that the house does not become a money pit." - This is very true for one's primary residence. Well said!
"I see no economic reasons right to buy now " - This is also well said! I agree 100%
"people who buy now are making a financial mistake" - I can't really argue this, since you are probably right on 50% of the cases. But may I ask if you say this to your friends" People who are having kids are making a finanical mistake, though they might be happy with the kids".
"I see no economic reasons right to buy now " - This is also well said! I agree 100%
"people who buy now are making a financial mistake" - I can't really argue this, since you are probably right on 50% of the cases. But may I ask if you say this to your friends" People who are having kids are making a finanical mistake, though they might be happy with the kids".
IrvineCommuter_IHB
New member
<p>Irvine123, </p>
<p>I get where you are going with the kids analogy but I personally do not equate having kids with buying a house. Completely different levels for me. Having kids can give one happiness that cannot be matched by another experience. While buying a house may be important for some, I do not believe that very few, if any, individuals look back on their lives and say "we are so lucky to buy this house." I am sure plenty of people have said, "we are so lucky to have had our children."</p>
<p>For me, the primary non-economic reason to own a house is to obtain stability. However, I can achieve that if I am a happy renter. There was an article a few weeks back about a couple in England who have lived in a hotel room for the past 10 years or so. For them, it works great. They stated that they never have to clean or worry about maintenance. I think they are perfectly happy with not having a house. Also, look at all those apartments in Newport and West L.A. with rents $4-5Ks. People who live there are perfectly happy with renting even though they can most likely buy. It is a lifestyle choice for them. </p>
<p> </p>
<p> </p>
<p> </p>
<p>I get where you are going with the kids analogy but I personally do not equate having kids with buying a house. Completely different levels for me. Having kids can give one happiness that cannot be matched by another experience. While buying a house may be important for some, I do not believe that very few, if any, individuals look back on their lives and say "we are so lucky to buy this house." I am sure plenty of people have said, "we are so lucky to have had our children."</p>
<p>For me, the primary non-economic reason to own a house is to obtain stability. However, I can achieve that if I am a happy renter. There was an article a few weeks back about a couple in England who have lived in a hotel room for the past 10 years or so. For them, it works great. They stated that they never have to clean or worry about maintenance. I think they are perfectly happy with not having a house. Also, look at all those apartments in Newport and West L.A. with rents $4-5Ks. People who live there are perfectly happy with renting even though they can most likely buy. It is a lifestyle choice for them. </p>
<p> </p>
<p> </p>
<p> </p>
Daedalus_IHB
New member
100% agree. It's apples to oranges. That kids are a financial burden is hardly debatable. Unlike home ownership, there is no close substitute for having kids.
lendingmaestro_IHB
New member
<p>Perhaps the title should be changed from "time to buy?" to "time to finance?"</p>
<p>Good points all around. I think that just because you have the means to purchase (finance) a home, it doesn't mean you should. I just cannot in good conscience advise anyone to purchase a property, put their hard earned after-tax dollars into a downpayment, and still have a monthly payment significantly higher than a rental payment. I also have a HUGE problem with people buying a home on their emotions--that's why we are in this mess in the first place. We aren't talking about buying a pair of designer jeans or new jacuzzi or even a car. Were talking about 600 thousand dollars here. The same people who bought with their emotions are the same people who are now crying fraud and not owning up to the fact that they made a mistake. People need to start exercising the utmost financial prudence when making the largest purchase of their lives. I hear people say they "need" a bigger house for their kids or a backyard. You don't need it, you want it.</p>
<p>Good points all around. I think that just because you have the means to purchase (finance) a home, it doesn't mean you should. I just cannot in good conscience advise anyone to purchase a property, put their hard earned after-tax dollars into a downpayment, and still have a monthly payment significantly higher than a rental payment. I also have a HUGE problem with people buying a home on their emotions--that's why we are in this mess in the first place. We aren't talking about buying a pair of designer jeans or new jacuzzi or even a car. Were talking about 600 thousand dollars here. The same people who bought with their emotions are the same people who are now crying fraud and not owning up to the fact that they made a mistake. People need to start exercising the utmost financial prudence when making the largest purchase of their lives. I hear people say they "need" a bigger house for their kids or a backyard. You don't need it, you want it.</p>
awgee_IHB
New member
I have thinking about what no_vas wrote. When we way good or bad time to buy, it seems to be more of a market timing issue rather than a personal one. If one looks at buying or selling a home from strictly the personal factors of affordability and desire, then there is no good or bad time to buy; just a time to buy, or sell. <strong>BUT</strong>, most of us also want to get a <strong>good deal. </strong>We can afford to buy a house right now, but have decided that we would rather wait until prices come down and it is a good time to buy. Good, because we consider it good to buy for less and use the excess for other desires such as college educations, vacations, furniture, decorating, (a table saw, but don't tell my wife), vet bills, gymnastic lessons, piano lessons ... well, you get the drift. So, for some, maybe there is never a good time or never a bad time to buy or sell, but there sure as heck is in my house.
bishie_IHB
New member
I have a friend who brought suitcases of money to close his house. He paid $600,000 in $20s! He sold it for $800,000 and was complaining bitterly about how the buyer took out a 30 year mortgage and how he had to sit there while they signed documents.
At the end of the day it's really a question of what you desire more. Is the stability of owning a house and being able to call it your own worth paying $2,000, $5,000 or $10,000 a month more than renting? Do you anticipate that rents will increase substantially in the near future? Do you feel that house prices or interest rates will rise dramatically in the future? If you do maybe then it is time to buy. Maybe you feel the pressure to own a home because your friends bought a house for $400,000 and it is now worth $600,000 or your parents bought a house for $230,000 and it is now worth $1,700,000. I know some parents put a ton of pressure on their children to buy a house. Maybe your friends ask you: why do you have cute leopard skin shoes, a Cayenne, a drool-able boyfriend/hubby, and a LV bag but don't own a home...is something wrong with you? There are many factors that determine when it is the right time for you to buy a house!
At the end of the day it's really a question of what you desire more. Is the stability of owning a house and being able to call it your own worth paying $2,000, $5,000 or $10,000 a month more than renting? Do you anticipate that rents will increase substantially in the near future? Do you feel that house prices or interest rates will rise dramatically in the future? If you do maybe then it is time to buy. Maybe you feel the pressure to own a home because your friends bought a house for $400,000 and it is now worth $600,000 or your parents bought a house for $230,000 and it is now worth $1,700,000. I know some parents put a ton of pressure on their children to buy a house. Maybe your friends ask you: why do you have cute leopard skin shoes, a Cayenne, a drool-able boyfriend/hubby, and a LV bag but don't own a home...is something wrong with you? There are many factors that determine when it is the right time for you to buy a house!