Home Buying in Rego Park>Question Details

Blind Buyer, Home Buyer in Rego Park, Queens, NY

Buy now or wait to see whats gonna happen in a year or two? 20 out of 20 people i asked about the future trend

Asked by Blind Buyer, Rego Park, Queens, NY Tue Aug 31, 2010

First of all, thank you guys for all your valuable information and vital help! I really appreciate it! But i still have this giant ? mark hanging over my head. 20 out of 20 people i asked about the future trend of housing market in Queens in the next 2-3years have told me the housing price will definitely go down given current appalling economic condition and sky high unemployment rate. So it seems everyone is telling me to hold on to my cash and wait for another year or two. one of the theories i have been told is that when the interest rate is low the value of the property is somewhat still inflated and when the interest rate goes up the price will go to the opposite direction. It means if im buying a property now with full cash payment thinking i will save a few hundred $s on my monthly bill i will not only loose the benefit of exploiting the record-breaking low interest rate or the tax deduction benefit but also will see the price plunge sometimes soon when the interest rate is up

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I can't speak with real authority on the real estate market in Queens but I just answered this question in detail for the area that I live and work in a week ago on a blog I posted here on Trulia. Take a look; the math is pretty clear in terms of historic interest rates and how far prices wourld have to come down to offset interest rates going up.
1 vote Thank Flag Link Wed Sep 1, 2010
Hey Blind Buyer:
I think I answered on of your questions already but here goes. First of all, your Uncle Joe or Steve or Cousin Mary aren't real estate experts - although they may have plenty of advice on how to spend your money, no one really knows what the real estate market will do. First question: are you currently paying rent? If so, multiply that by 12 to 24 months and see how much money you're losing right there. Even if prices do go down, how much could you really save by waiting? More importantly, if you are a cash buyer, that gives you even more buying power. If you have a good buyer's agent that can find you an extremely motivated seller, you could also save a bundle. Finally, if you plan on staying in your next potential purchase for at least 5-7 years, it's a great time to buy.

Ralph Windschuh
Certified Buyer Representative
Senior Real Estate Specialist
Associate Broker
Century 21 Princeton Properties
631-467-0009
rwindschuh@c21princetonproperties.com
In The Top 2% of Century 21 Agents Nationwide!
1 vote Thank Flag Link Wed Sep 1, 2010
It's still unknown what the future will bring. Always has been and always will be. Real Estate, in my opinion is a good investment. However it is not a liquid asset and if you will need your cash in a hurry you may not be able to sell your real estate for the same amount you paid for it. That being said, interest rates are quite favorable and it's an opportunity to lock into a very low 30 year mortgage rate. If you are buying real estae to actually live in, then there are some good reasons to buy a property that you really want for a good price. If you wait for the reports to confirm a bottoming of the market....chances are that will already be 3 to 6 months after that actually happens. Prices may already be creeping back up and you may or may not be paying the same or more then youwould today. But, you may not find the ideal property if you wait...so you may want to consider whether or not you are willing to take a chance with a property that you really want , or pay less ( maybe) and end up with your second, third or even fourth choice of where you want to call home. Plus, if you buy now, you will be starting to pay off that mortgage that much sooner.
1 vote Thank Flag Link Tue Aug 31, 2010
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