Comments on: Right Time to Buy a House or Just Bad Money Management? http://moneyning.com/housing/right-time-to-buy-a-house/ A personal finance blog where we share insights on carefully saving money, investing, frugal living, coupons, promo codes because the little things matter in achieving financial freedom! Sun, 21 Mar 2010 09:05:57 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Kaylabe http://moneyning.com/housing/right-time-to-buy-a-house/comment-page-1/#comment-12688 Kaylabe Tue, 30 Dec 2008 01:11:48 +0000 http://moneyning.com/?p=898#comment-12688 I think now is the time to buy. When all you hear about is the housing market and everyone is panicked is the time time to move. This of it like y2k. Everyone panicked and it was all anyone talked about. Many got rich off the panic-stricken massive who sold homes and bought disaster kits. By the time new years 2000 happened, everyone had taken precautions to reverse the computer glitches. The market will recover quicker than expected because of panic. We are all cutting back and being super cautious till out new president comes in and reassures us its all ok. I would buy before tax time 2009. I think we will see a massive recovery beginning by summer. I think now is the time to buy. When all you hear about is the housing market and everyone is panicked is the time time to move. This of it like y2k. Everyone panicked and it was all anyone talked about. Many got rich off the panic-stricken massive who sold homes and bought disaster kits. By the time new years 2000 happened, everyone had taken precautions to reverse the computer glitches. The market will recover quicker than expected because of panic. We are all cutting back and being super cautious till out new president comes in and reassures us its all ok. I would buy before tax time 2009. I think we will see a massive recovery beginning by summer.

]]> By: lasik surgery http://moneyning.com/housing/right-time-to-buy-a-house/comment-page-1/#comment-6793 lasik surgery Wed, 21 May 2008 03:41:11 +0000 http://moneyning.com/?p=898#comment-6793 Down here in FL there has never been a better time to buy -- it's just very hard to get a decent mortgage with the economy as it is. Down here in FL there has never been a better time to buy — it’s just very hard to get a decent mortgage with the economy as it is.

]]> By: Certificate of Deposit Rates http://moneyning.com/housing/right-time-to-buy-a-house/comment-page-1/#comment-6781 Certificate of Deposit Rates Mon, 19 May 2008 20:43:59 +0000 http://moneyning.com/?p=898#comment-6781 Aaron and Cease, great points. As I was thinking about the property tax issue, purchasing the right size home is also important. I would love to have our original property taxes which were about $2000 per year. We out grew our house and now they are over $6000. And talking about property taxes, make sure you check into any assesments or bonds that are added on. On ours there are 3 additional ones that add quite a bit above the base 1%. Also, consider what growth may occur in your area. Will the city be looking to have a vote for a new school or two. The city passed a bond to build a new high school. We pay about $100 per $100,000 per year. The county passed a bond for the local community college. We did make the move before things became super-overheated so we had a nice down payment, but unless we at some point move to a lower priced home, we are locked into those property taxes. Lots to contemplate. Aaron and Cease, great points. As I was thinking about the property tax issue, purchasing the right size home is also important.

I would love to have our original property taxes which were about $2000 per year. We out grew our house and now they are over $6000. And talking about property taxes, make sure you check into any assesments or bonds that are added on. On ours there are 3 additional ones that add quite a bit above the base 1%.

Also, consider what growth may occur in your area. Will the city be looking to have a vote for a new school or two. The city passed a bond to build a new high school. We pay about $100 per $100,000 per year. The county passed a bond for the local community college.

We did make the move before things became super-overheated so we had a nice down payment, but unless we at some point move to a lower priced home, we are locked into those property taxes.

Lots to contemplate.

]]> By: Aaron Stroud http://moneyning.com/housing/right-time-to-buy-a-house/comment-page-1/#comment-6776 Aaron Stroud Mon, 19 May 2008 19:45:29 +0000 http://moneyning.com/?p=898#comment-6776 @ Cease, you're right, the interest rate is a very important factor. Waiting for houses to drop 50-100k could be an expensive mistake if rates rise. However, the rate's importance is also determined by time frame. The longer they plan to stay in the same house, the more important their interest rate will be. As Bret pointed out, their purchase price will determine their property taxes. So they will have a strong incentive to stay in the same house instead of trading up at some point. @ Cease, you’re right, the interest rate is a very important factor. Waiting for houses to drop 50-100k could be an expensive mistake if rates rise.

However, the rate’s importance is also determined by time frame. The longer they plan to stay in the same house, the more important their interest rate will be.

As Bret pointed out, their purchase price will determine their property taxes. So they will have a strong incentive to stay in the same house instead of trading up at some point.

]]> By: cease http://moneyning.com/housing/right-time-to-buy-a-house/comment-page-1/#comment-6775 cease Mon, 19 May 2008 19:27:53 +0000 http://moneyning.com/?p=898#comment-6775 How come no one on here even considers the interest rate. Its very low at this point, and according to all the analysts... they really can't drop rates anymore. So by the end of the year its very likely rates will start to rise. So whats worse, waiting for houses to drop another 50k to 100k but taking a 8% rate over 30 years or buying now and getting 30 year fixed at a little under 6%. Plus the longer you wait the more rates are likely to increase. How come no one on here even considers the interest rate. Its very low at this point, and according to all the analysts… they really can’t drop rates anymore. So by the end of the year its very likely rates will start to rise. So whats worse, waiting for houses to drop another 50k to 100k but taking a 8% rate over 30 years or buying now and getting 30 year fixed at a little under 6%. Plus the longer you wait the more rates are likely to increase.

]]> By: Aaron Stroud http://moneyning.com/housing/right-time-to-buy-a-house/comment-page-1/#comment-6761 Aaron Stroud Mon, 19 May 2008 01:04:42 +0000 http://moneyning.com/?p=898#comment-6761 Bret, great point. As our property taxes continue to skyrocket, I try not to think about the property tax protection our neighbors to the south enjoy. Bret, great point. As our property taxes continue to skyrocket, I try not to think about the property tax protection our neighbors to the south enjoy.

]]> By: Bret Frohlich http://moneyning.com/housing/right-time-to-buy-a-house/comment-page-1/#comment-6760 Bret Frohlich Sun, 18 May 2008 19:00:58 +0000 http://moneyning.com/?p=898#comment-6760 My Mom lives in Aliso Viejo, so I am familliar with the area. Even though it's a nice place to live, I wouldn't be paying a million dollars for an upscale tract home there. I agree with Carl that those numbers may not add up. Regarding your situation, you probably have at least a year to make a move, so I would line up all your finances. That way, when you do find a deal that makes sense, you will be able to "pull the trigger" from a position of stregnth. Every $100K you save on a house is $1200+ per year saved in property taxes for the rest of your life. You also save on points, closing costs, escrow fees and especially interest. So, get the best deal possible and don't stress your future finances. My Mom lives in Aliso Viejo, so I am familliar with the area. Even though it’s a nice place to live, I wouldn’t be paying a million dollars for an upscale tract home there. I agree with Carl that those numbers may not add up.

Regarding your situation, you probably have at least a year to make a move, so I would line up all your finances. That way, when you do find a deal that makes sense, you will be able to “pull the trigger” from a position of stregnth.

Every $100K you save on a house is $1200+ per year saved in property taxes for the rest of your life. You also save on points, closing costs, escrow fees and especially interest. So, get the best deal possible and don’t stress your future finances.

]]> By: Rachel @ Master Your Card http://moneyning.com/housing/right-time-to-buy-a-house/comment-page-1/#comment-6730 Rachel @ Master Your Card Fri, 16 May 2008 12:29:51 +0000 http://moneyning.com/?p=898#comment-6730 I think it depends on what type of house you want in what area. You may have your heart set on a particular type of house and if you find one then it might be best to get it while you can. Most people also say the sooner you can get on the housing ladder the better, but I am not sure how true that is in the current climate. I think it depends on what type of house you want in what area. You may have your heart set on a particular type of house and if you find one then it might be best to get it while you can. Most people also say the sooner you can get on the housing ladder the better, but I am not sure how true that is in the current climate.

]]> By: Mike Huang http://moneyning.com/housing/right-time-to-buy-a-house/comment-page-1/#comment-6694 Mike Huang Wed, 14 May 2008 17:50:51 +0000 http://moneyning.com/?p=898#comment-6694 House prices are in fact dropping as we speak. The economy has grown to an outrageous movement that no one wants to buy anything anymore. -Mike House prices are in fact dropping as we speak. The economy has grown to an outrageous movement that no one wants to buy anything anymore.

-Mike

]]> By: Certificate of Deposit Rates http://moneyning.com/housing/right-time-to-buy-a-house/comment-page-1/#comment-6693 Certificate of Deposit Rates Wed, 14 May 2008 16:44:04 +0000 http://moneyning.com/?p=898#comment-6693 Aaron, excellent comments and insight. I agree, completely. We've even experienced some of this. We live an in expensive area, and necessary cash outflows have locked us in to certain things for the time being. Aaron, excellent comments and insight. I agree, completely.

We’ve even experienced some of this. We live an in expensive area, and necessary cash outflows have locked us in to certain things for the time being.

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