There are some good deals in the area now. Sounds like you have your finances worked out. If you are thinking about buying, decide what your housing requirements are and what they will be in the next few years. See if there's anything on the market that meets those needs. I can provide a detailed analsis of the property, neighborhood and market trends.

I look at every client as an investor. It's my job to make sure that it's a sound investment. I've refused to submit an offer on an overpriced property. My buyers were shocked! We made up and found a property that was priced properly and made an offer.

I'll still be in business in 2011 and would like to list your property when you transfer or move up.

Thu May 15 2008, 08:25

Hey Jeremy,

There are a lot of answers on this topic! Ok, here is mine. First of all, real estate is a good investment (I do believe this) but the problem with it is it isn't very liquid (it can take years to sell). I agree that home sales are a regional thing but I'll just offer this: Even when homes do sell in my market, the average amount of days is over 100. Is this always the case? No. But you should plan accordingly. So should you buy? Most people are saying yes. I am not so quick to jump the gun on that answer. You are only staying till 2011 for sure then what will you want to do? If you want to live there for a long time it would be a great idea, but if you want to move soon after this, I am not sure how much the value would appreciate in three years. When you rent, you can save excess money in preparation for homeownership. I think this is a good idea. So if you are sure this is where you want to live for a long time then do it. If not, I would say don't. I don't look at my personal home-ownership as an investment opportunity (when you minus out the costs of living and home improvements over time you can see why). I count investment properties as investment properties. So with that said (sorry this took so long) if you want to live there for a long time do it. If not, wait.

Tue May 13 2008, 18:25

BEWARE OF THE USED HOUSE SALESMAN!!!

Tue May 13 2008, 12:37

I agree with Deborah. Real estate is regional not national. Also the Fed just dropped the interest rates again so as long as you can afford it, now may be a good time for you to buy. The rate of appreciation in Virginia Beach has slowed down but it is existent. Military folks also have the opportunity to have a rental property in a few years if they get transferred. With the right property, you can use it as a tax shelter and an investment. It may not appreciate by much in the next few years but over the long term it may pay off. You can always have a tenant pay the mortgage, use it as a tax shelter and then when you need the money, you can take out a second against it or sell it and make a profitable income. It all depends on the property and what you intend to do with it.

Let's say you rent something for $1000 a month for the next 3 years...that would be $36,000 in rent you will have paid out. Wouldn't you rather pay $36,000 over the next 3 years into a home that you own? When you rent somewhere and move out you are not entitled to anything. When you own and pay down the principal, you get to keep whatever the difference in your loan payoff and the sales price....that could be much more than the $36,000 you've paid into it.

In the end, you have to make the best decision for your family no matter where you are stationed.

Best of luck!

Tue Mar 18 2008, 13:15

I would suggest buy, as long as you do your market research. Not all towns are crashing, and not all areas in these towns are either. For example, in OK, home values are up (slightly). I'm sure you've heard about home values crashing in Tampa, FL. However, in the Citrus Park area of Tampa, home prices have actually doubled. Historically, money moves NW of a city. Look for areas where large homes are being built, and buy in the damage path (just ahead of builders). Ask around about the areas that have bad reputations or schools, and steer clear of them. More importantly, after you've done all your research, buy below your means. Also, think about buying a home warranty, or asking the seller to offer one (around $200 - 600). Ask how long the property has been on the market - and negotiate! Don't be afraid to give a low offer. The worst they can say is "no".

Mon Mar 17 2008, 16:11

Sorry my answer before did not post right & was too hard to understand all strung out like that. There is an explanation on my website that explains the whole "buy vs rent". www.TLC-RealEstate.com I am not trying to sell you anything ....I live in Omaha NE..... Renting is truly a waste of money though, it's good for the landlord/ owner. The market might be down right now but it is unlikely that it will stay down for long.

Tue Mar 11 2008, 18:43

Way to go Tman, I like your answer.

Tari Lynn's answer is the funniest. Like a little kid doing a magic trick--abra cadabra, and she pulls

Total Wealth Increase = $31,427
If you buy a home your wealth would increase by $31,427.

out of her hat.

Beware of the posts that have pictures. Seems like they are trying to sell you something.

Tue Mar 11 2008, 17:05

So I've been into the housing bubble for 3 years or so. I've got friends who unfortunately didn't take my advice and now totally regret their purchases of their illiquid properties. Take it from me, RENT. Take your rent value and multiply it times 120. This is what it should cost to buy the place you are renting. Take a nearby home for sale, and divide it by 120. Yea. Look at how jacked up the difference is. This market is prime for a fall (you might need to figure in 20% downpayment on those earlier figures, it doesn't matter though, it's all out of wack). By renting, I save SOOO much money it's not funny. All those so called "home owners" (call them Home Moaners now) that puff their chests about how they own... own a load of debt with ZERO in the game! 103% CLTV loans and stuff. DEBT IS NOT WEALTH. I saw some statistic from airheads at NAR about how renters net worth on avg is $4,000 and home moaners are $184,000. Totally funny when you compare it to the insurance numbers (rental insurance). Loads of bung from air heads. You can take apart anything a realtor says and debunk it with real facts. Market is going to go DOWN for a WHILE, US Banks are getting LOANS from ARABS to remain SOLVENT. WAKE UP PEOPLE.

Wed Mar 5 2008, 10:12

Great call, Jo. Maybe if this gentleman does buy now, in six months he can be mentioned in an article like this one:
NEW YORK (Reuters) - One-tenth of U.S. homeowners hold mortgages that are larger than the worth of their homes, Moody's Economy.com said on Friday.

Nearly 8.8 million homeowners, or 10.3 percent, are in over their heads, its chief economist, Mark Zandi, estimates.

As a result, millions of U.S. homeowners have the incentive to abandon their properties.


http://www.reuters.com/article/domesticNews/idUSN2259847620080222

Jo, this is a classic line:
The ones that take advantage of it now will prosper unbelieveablly in the future.

If he buys now, the only person who will be prospering is this gentleman's bankruptcy attorney. Bankruptcy attorneys will be making large fees if he or anyone else buys a home now.

Sat Feb 23 2008, 13:02

Since in most areas this is a buyer's market and interest rates are sooooooo low, now may be the right time for your to buy. You have a couple of things going for you that put you in the driver's seat ahead of the crowd.

First you have nothing to sell - wow. That means you will not be taking a hit on the back end to move to better pastures. Second, you indicated that you have the means to invest (not depending on risky loan options to get into your investment).

The best strategy for someone in your position is to buy in a stable, appreciating area on a equity rich property. The old saying is still king..location, location. location. Enlist an agent that has the knowledge, expertise and the time to do the numbers for you. You may have to put in more than one offer(not at the same time) to get what you want.

Also, keep in mind your quality of life, lifestyle and the tax incentives you will enjoy from your purchase. I suggest you reading the book "The Dip". It will spell it out on why your should be purchasing now, unlike thoses who purchased when the market was at it's high end. Savvy investors and the millionaires I know are taking advantage of this market right now to set themselves up for a hefty return. This market is not new and I have been through it before. The ones that take advantage of it now will prosper unbelieveablly in the future.

Best wishes and happy hunting!

Jo Shaner

Sat Feb 23 2008, 10:17

Hi Jeremy. Looks as though you have received loads of answers and opinions concerning your question. The bottom line is that no one really knows for sure what the market will do in our area tomorrow, next month, or several years down the road. There are several facts that can not be disputed. As long as you rent you are paying the mortgage for someone else ( I have properties that I own and rent ) , there are tax advantages to home ownership, pride in home ownership, and the rates are as low as they have been in years. I am in the market purchasing investment properties myself because I personally feel things will improve. Some have said that you will over pay. That of course depends much on what the market does, however a reputable lender will not lend more for a home than they can get for the home if it is thrown back in their hands. Jeremy there are many folks that would love to help you purchase a home, and many that like to sit back in the loom and gloom camp and complain. Contact a REALTOR with whom you feel comfortable and get a pros help, usually at no cost to you should you and your wife decide to buy.

Thu Jan 31 2008, 21:24

So many great lines in this thread...here's a real gem:
"Forecasters predict that as our economy improves, the real estate market will as well."
Considering conditions are so bad, a recession so inevitable that the Fed cut rate twice in the past ten days (first time since 9/11 that they cut rates between meetings), assuming that the economy is improving is a real stretch.

Merrill Lynch announced that home prices are going to fall 30 percent by 2010. They have a vested interest in higher home prices since they have so much money caught up in mortgage-backed securities.

Take that for what it is worth...

Also, Tari presents a compelling statistical argument below. But I'll ignore all of her exaggerated assumptions except for one: The price of the home she presents is $90,000. The price of rent: $800.

I don't know about your area, but in just about every area in the country I track (New York, LA, San Diego, northern California), it is nearly impossible to find a home priced anywhere near 100 times the rent of a comparable property. Where I live, homes are so overpriced that it is a shock to find a property priced at 250 times the rent. That might be something to look for if you do a preliminary search.

Good luck.

Thu Jan 31 2008, 12:11

Jeremy,

I agree with Franks answer. Houses in our market may not be appreciating at the rate they were a few years ago but that does not mean that now is not a good time to buy. Forecasters predict that as our economy improves, the real estate market will as well.

You have to determine what is best for you and your wife. If you can afford to purchase a home you will at least know that besides tax increases, your mortgage will not go up every year, the interest you pay is also tax deductible. My husband is also in the military and I am a Hampton Roads native. For his career track, he will most likely stay in Hampton Roads for many many years.

If and when you do get transferred out of the area, you can sell your home or rent it out. If it has not appreciated enough, you can rent it out until the market improves enough to sell it. No one can tell you what will happen in a few years but you have to make the best decision for you and your family.

My recommendation would be to talk to a reputable lender to determine how much you can afford and then take a look at what is on the market in that price range. If you hire a REALTOr(r) you can even have them do some research to tell you what the market value is right now and based on the rate of appreciation for the area, what it wil be worth in a year or so.

Best wishes.

Thu Jan 31 2008, 11:22

Jeremy,

Although Tman is correct that you can obtain a lot of the information you desire by doing the work yourself, I have to ask why? Licensed real estate professionals are here to provide you with the information you desire, and many agents will also provide this information to you for at no cost or obligation.

Receiving advice from those with such pessimistic outlooks on the market is completely unproductive to achieving your goals. Unless one specifically knows our local market, one cannot possibly provide you with an accurate answer to your question – novice or Realtor.

To keep this thread focused on your question, I will preface by saying *again* that our area is unique and unlike many other states that are experiencing a declining market place. Houses in Chesapeake VA that are priced in the $325,000 - $475,000 price range are not having any trouble selling in as little as 15-30 days - when priced to market.

As a buyer’s agent, I will say that you made the right choice by renting first. I rented too when I moved here from south Florida in 2003. But if you’re in a lease that will terminate this July 2008, then now is the time for you to begin speaking with licensed and certified professionals in the business, to help you ascertain which direction is right for you.

To receive an *unbiased* opinion about whether you should buy or continuing renting, I suggest that you speak with a certified financial advisor or with your CPA. I won’t be surprised with the answer you receive, but I’m sure Tman will.

In the recent words of Suze Orman, and a paraphrase here, if you can get a great deal on a home, receive seller concessions where seller pays for all or most of your closing costs, and receive a low fixed rate loan in the 5 percent range, then it would behoove anyone to purchase a home now rather than continue renting.

Respectfully,

Frank Biganski, Realtor ABR

Wed Jan 30 2008, 05:04

Jeremy, don't you just love it...? ..l.o.l..

"Buy now" -- "you buy now" -- "buy a home your wealth would increase" ....

Where's the balloons and the free hot dogs..? .. If you didn't know better, you'd think you were at one of those "Mega dealer car sales" .. (only 1 left at this low low low price.!) .l.o.l..

Let's be honest ...

1.) you're in the Military and anything could happen depending on the new administration that will roll in next year.

2.) interest rates are low and will be getting lower, we'll see 4ish% 30 year fixed rates in the next 12 months.

3.) This mortgage issue ain't over yet, and you have folks that have HUGE debt ... not just because of the value of their homes, it's those tiny little things that nobody likes (or won't) talk about: .. like those 2 new lease cars in the garage and their payments are $500 more a month than before .. and lets not forget that little 42 inch home theater in the rec room thats costing $265 a month ... and gosh darn it, we had to have those granite tops in both rooms thats hanging on the HELOC for an extra $412 a month, etc, etc, etc.

Depending on the area and when the home was purchased, you'll see home prices drop 25/40% in the next 10/15 months. I'm not telling you "not" to buy .. I'm just saying "not now".

Keep your cash, keep renting, keep saving and keep looking along the way .. believe me, I never found a house I couldn't live without.

Thank you for a job "Well Done".!


:^)

Tue Jan 29 2008, 20:44

I don't know the area you live in. However...my opinion is that you should buy based on the fact that I don't believe interest rates will go a lot lower than they are now. You can buy cheaper than rent...and get a great tax deduction. Go for it!

Tue Jan 29 2008, 18:34