Comments on: It’s Time to Buy a House (or a Car), If You Can http://www.moneyunder30.com/its-time-to-buy-a-house-or-a-car-if-you-can Personal Finance for the Young and Ambitious Fri, 19 Mar 2010 21:32:50 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: NickZ http://www.moneyunder30.com/its-time-to-buy-a-house-or-a-car-if-you-can/comment-page-1#comment-1912 NickZ Mon, 29 Dec 2008 04:56:14 +0000 http://www.moneyunder30.com/?p=956#comment-1912 In my opinion, I don’t think it is the best time for most people under the age of 30 to buy a home. Below are a few reasons why I think it may be prudent to sit on the sidelines for a little while and see how the current economic storm shakes out. 1. The incoming Obama Administration will try something to stabilize the housing industry, therefore I think there is a real possibility that mortgage rates may drop to 4.5% in the near future. 2. I don’t think homes are a steal at all right now. Prices continue to drop in most major metropolitan areas around the country. In places like South Florida and Southern California many real estate experts are predicting another 25% drop in home values in 2009. That means if you buy a $200,000 house or condo tomorrow, it will only be worth $150,000 a year from now. That is a loss of $50,000 in just a year. New homeowners will most likely have to stay in their home for a substantial amount of time to see any kind of positive return. And how many people under the age of 30 just getting out of college know where they will be living or working 5-10 years down the road. 3. The economy continues to worsen. Unfortunately, it looks like even more people will be losing their jobs in the next year. A job loss coupled with a new 30 year mortgage, on a depreciating asset, well that could be devastating. In my opinion, I don’t think it is the best time for most people under the age of 30 to buy a home. Below are a few reasons why I think it may be prudent to sit on the sidelines for a little while and see how the current economic storm shakes out.

1. The incoming Obama Administration will try something to stabilize the housing industry, therefore I think there is a real possibility that mortgage rates may drop to 4.5% in the near future.

2. I don’t think homes are a steal at all right now. Prices continue to drop in most major metropolitan areas around the country. In places like South Florida and Southern California many real estate experts are predicting another 25% drop in home values in 2009.

That means if you buy a $200,000 house or condo tomorrow, it will only be worth $150,000 a year from now. That is a loss of $50,000 in just a year.

New homeowners will most likely have to stay in their home for a substantial amount of time to see any kind of positive return. And how many people under the age of 30 just getting out of college know where they will be living or working 5-10 years down the road.

3. The economy continues to worsen. Unfortunately, it looks like even more people will be losing their jobs in the next year. A job loss coupled with a new 30 year mortgage, on a depreciating asset, well that could be devastating.

]]> By: Mark http://www.moneyunder30.com/its-time-to-buy-a-house-or-a-car-if-you-can/comment-page-1#comment-1914 Mark Sun, 21 Dec 2008 21:08:05 +0000 http://www.moneyunder30.com/?p=956#comment-1914 If you have the money you can get steals in homes and cars. Some auto dealers are offering buy one car get the second for a dollar. The problem is that money is just so tight right now that few can take advantage of these deals. If you have the money you can get steals in homes and cars. Some auto dealers are offering buy one car get the second for a dollar. The problem is that money is just so tight right now that few can take advantage of these deals.

]]> By: Money Under 30 http://www.moneyunder30.com/its-time-to-buy-a-house-or-a-car-if-you-can/comment-page-1#comment-1913 Money Under 30 Tue, 16 Dec 2008 19:27:29 +0000 http://www.moneyunder30.com/?p=956#comment-1913 I really don't know if the push for 4.5% rates will work or not. The reasoning seems sound (that the recession started with housing, so perhaps reversing housing will reverse the broader economy). Then again, 4.5% rates would be a result of government subsidies which is just MORE taxpayer money coming out of our pockets. I really don’t know if the push for 4.5% rates will work or not. The reasoning seems sound (that the recession started with housing, so perhaps reversing housing will reverse the broader economy). Then again, 4.5% rates would be a result of government subsidies which is just MORE taxpayer money coming out of our pockets.

]]> By: Live for Improvement http://www.moneyunder30.com/its-time-to-buy-a-house-or-a-car-if-you-can/comment-page-1#comment-1911 Live for Improvement Tue, 16 Dec 2008 18:14:48 +0000 http://www.moneyunder30.com/?p=956#comment-1911 I think now is a decent time to buy. Will rates and prices go lower? Maybe, but eventually they will get better. If they don't we will have nuch bigger problems to deal with. -Dan Malone- I think now is a decent time to buy. Will rates and prices go lower? Maybe, but eventually they will get better. If they don’t we will have nuch bigger problems to deal with.

-Dan Malone-

]]> By: Jason http://www.moneyunder30.com/its-time-to-buy-a-house-or-a-car-if-you-can/comment-page-1#comment-1915 Jason Tue, 16 Dec 2008 17:15:20 +0000 http://www.moneyunder30.com/?p=956#comment-1915 Do you think rates will end up dropping to 4.5? Do you think rates will end up dropping to 4.5?

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