buy a house now or wait a few years?

[chucklenut]

simple enough question but not really lol

im looking at buying a house in the next six months. sticking in atlanta and surrounding area, looking for a started house between 150 and 250K. ive heard nad got a small feeling the market for house may drop off int he next few years in which case i would want to buy my house then and do it when im even more cash heavy

so the idea is forgo the rent and what equity i could be putting into a home in the hopes that the value of homes will drop enough in 2 to 5 years that it would be more advantageous to buy then

any input

 

[BDR1]

If you can wait till they rig the election again and put democratic president in office...you can get a house dirt cheap.

 

[Chatsworth]

Lots of people with that same plan..Its a great time to sell but a very difficult time to buy.
Some people have decided now is the time to sell and are making a good Ca$h out and planning on 6-18months renting with thoughts of a downturn
As 1 woman put it "She and her husband were willing to Roll the Dice" that they could bank a lot of money and then rent until it was a buyers market and win both directions

( I wish her a lot of luck with that plan )

I have a friend who bought his place at the TOP of the last market in the fall of 07 and paid $290K..
After the collapse in spring of 08
and maybe another 12months?

His place was worth $190k

That would be a VERY hard pill to swallow..Losing $100K in value in 12 months and still just another 29 more years to pay on his 30 year MTG.



I caution you to step very carefully right now..

 

[Smiley]

I’m hoping/betting on a drop. It likely will not be huge, especially in town. I just sold my house in East Atlanta. We are wanting something bigger, so I put my 2/1 on the market and am now renting a 5/2.5 across the street.

Time will tell, but I just can’t stomach the thought of a $500k+ mortgage here in the Village. I am sitting on the sidelines with cash now watching for an opportunity.

 

[Chatsworth]

Its really not a time to buy retail..
Its really not even a level playing field and a person on the outside of the industry right now is gonna skinned.
Investors are lined up with agents and as soon as a agent gets a listing it is never even getting to the market if its priced low enough to be a "Deal"...
Its even getting to the point of people knocking on doors upon hearing a rumor of a house maybe being for sale..

The reason I say its not a good time to buy retail is that in a market like this you have to think outside the box..
Pre-Foreclosures or the weekly foreclosure notices that run in the paper..
Obituaries..
Estate sales?

I once bought a house at a estate sale
Wife was looking and buying items at the sale and I asked the guy running it if Mom or Dad had passed?
He said yes..I asked if house was for sale?
He said it would be in a few weeks...So I had him walk me around and we agreed on a all cash price close in 2weeks.

On the ride home my wife asked why I didn't buy anything?
I told her I bought the best/biggest sale of the day..
What?
I bought the house..

In a market like this you cant expect to finds anything worth buying at its true value without the risk of getting hurt (badly)

Look outside the box
Ask friends/relatives/church members..
Let people know you are looking
My State farm agent once told me about a house she knew about that was "going to be" for sale.

 

[Granite3]

Interest rates are very near a historical low.

You can buy a nicer house with a below 4% mortgage than a less expensive house for 6% interest.

$300k house at 3.92% is $1418 per month, $511k over 30 years.

$200k house at 6% is $1499 per month, $599k over 30 years.

$300k house at 3.125 is $2090 per month, $376k over 15 years.

Rates have not stayed this low for a long time.

https://www.macrotrends.net/2604/30-year-fixed-mortgage-rate-chart

 

[CBH13]

yah it is not a great time at all to buy right now. if you look at the prices for most homes vs what they went for only 5 years ago its staggering. i want to buy a second home but will 100% be waiting for the next bubble to burst

 

[10thmountain]

sellers market. Wait till bernie Crashes it all and burns it.

 

[jeep78]

If you can wait till they rig the election again and put democratic president in office...you can get a house dirt cheap.

Of course, you will be broke and unable to pay for that cheap house.

 

[Falcon1]

I don’t recommend buying a starter house now. You’ll end up blowing the budget in a house that needs a lot of work. Also remember never get emotional about a house when you do decide it is time to buy, expect to walk away from a few that you put an offer on.