Home Buying in Takoma Park>Question Details

Dream Team1, Real Estate Pro in 20745, MD

A question for renters, Why are you still renting??

Asked by Dream Team1, 20745, MD Sat Aug 6, 2011

With interest rates low, housing prices down and programs to help with closing and down payments even programs for bad credit, WHY are You still Renting???

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Answers

7
Because:

They plan to move within the next 5 years.

They hope to move within the next 5 years.

They don't want to pay the outrageous rates for buyers with poor credit.

They are concerned the home values will continue to drop, so they don't want to "catch a falling knife."

They're hoping home values will continue to drop, so they'll be able to get an even better bargain in a few months.

They are in an uncertain employment situation.

They recently lost a job.

They recently changed a job.

They recently graduated from school and don't have a job yet.

They will stop working soon. (A couple, perhaps, with a pregnant wife/partner.)

They had a recent short sale.

They had a recent foreclosure.

How about those for some reasons?
2 votes Thank Flag Link Sat Aug 6, 2011
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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Or they were underemployed from 2008 to 2010 & lost their home to foreclosure. Now they have a good job but don't trust the mortgage banking industry!
1 vote Thank Flag Link Tue Aug 7, 2012
Rhonda, does this include 3 years of looking (and learning the ropes)? Because this is precisely what I've been doing! Working every day in the heart of national economics and interest rate heaven (FRB), and after 4+ mortgage brokerage companies and too many agents to count (over a 3 year period), it's very difficult to trust those in directly in the housing market industry! This is a first for me and I intend to go into ownership smart and prepared! Although I've experienced some characters, I'm def not discouraged!
Flag Thu Oct 3, 2013
Rhonda, Sorry for your hardship, but once you are through the required time you can own again. you do control the type of mortgage you commit to. all things in life have an up side and a down but I hope this hasn't discouraged you from home ownership. Don't trust do your due diligence and know!
Flag Tue Aug 7, 2012
Not sure about everyone else, but I've been (desperately) trying to fine a SFH that isn't falling apart or need $30k renovations, or a condo that has fees less than I'm paying rent now! It's impossible in D.C.! Looking in Takoma Park MD, Hyattsville/Chillum (Avondale) area... need Metro bus and rail (need redline metro... work in the heart of K Street). Hoping to get away from paying someone else's mortgage really soon (like, by November!!!). If you have leads, please let me know! Sbsimms311@gmail.com

Appreciate it! sbs
0 votes Thank Flag Link Thu Oct 3, 2013
Silver Spring has great options and many are near metro... you'd be amazed what going outside of DC by 15 minutes can yield!
Flag Thu May 19, 2016
Thanks a lot DREAM TEAM;

You just re-generated the ubiquitous DAN!
0 votes Thank Flag Link Wed Aug 8, 2012
I guess your right Ron being I asked that question a year ago.
Flag Wed Aug 8, 2012
Home ownership - think about why you want to own a home. Just really take a step back and forget about all your biases. You think “renting is flushing money down the toilet”. You might think “home ownership is ‘roots’ for your family”. Why do you think these things? Isn’t it suspicious to you that everyone else says the same slogans? That I just wrote down the exact things that are you in your head when you try to justify buying a home?

Does it make sense at all that there is a trillion dollar industry (over 20 trillion to be exact when you add in mortgages plus the part of the economy that is dependent on home building) that wants you to own a home? Banks, the government, home builders, furniture makers, real estate agents, etc are all the priests and ministers of that religion. Don’t you think a small part of that 20 trillion goes into hammering again and again the marketing message that you need to own a home?

Just do the basic math on home ownership. It does not work. It will NEVER work. Maybe if home prices go down another 80% but that’s it.
0 votes Thank Flag Link Wed Aug 8, 2012
In response to the answers, one of the top ways for the country to get back on it's feet is new or first time buyers to buy homes in increases the city and states income base, each home purchased will create about 7 jobs, the Feds are leaving the interest rates low for the next 2 yr. ( read time to get a great deal NOW) real estate has proven to be a great long term investment, if you lose your job renting what do you have? if you stop working soon can you afford the rent increases the rest of your life? home ownership stabilizes the communities and a strong community makes a strong city etc.. etc.. as far a America not recovering I will always side with the red white and blue! God Bless America. just a few answers for more contact Me or N.A.R. Thanks
0 votes Thank Flag Link Wed Aug 10, 2011
Adding to Don's list:

The banc's shadow inventory is massive and will at some point be unleashed creating huge supply, huge variety, and huge price declines within the existing home markets.

Opportunity cost of the down payment is steep. $20,000 dumped in real estate as down payment will be lost inside 12 months via home price depreciation. Conversely, $20,000 put into precious metals will gain 20 to 40% in 12 months.

Home price declines consensus is much too low. I expect another 20% decline in 12 months and 20 to 50% declines thereafter. Americans are generally economic ignoramuses is why they expect homes to rebound if not appreciate. NOT GOING TO HAPPEN IN REAL TERMS.

Renting ultimately allows me to save copious amounts of money while I wait for home prices to accelerate to the downside.
0 votes Thank Flag Link Sat Aug 6, 2011
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