Foreclosure in 90278>Question Details

.,  in Los Angeles, CA

Will I be better off or worse off if I Buy a home right now.?

Asked by ., Los Angeles, CA Fri Oct 16, 2009

The question leaves a lot to the imagination. But is it fact of fiction....Can anyone get ahead buying now, even at a great price?

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Hello Maher,

The market is like a roller coaster BUT i do think in the long run it's a great time to buy. In the long run real estate in LA is a safe bet.

Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
(323) 899-2900
1 vote Thank Flag Link Fri Oct 16, 2009
Even today buying a home does not guarantee it will hold value. Consumer confidence is low, and there are a lot of homeowners far behind on payments which means the future market isn't looking very bright at all in terms of the housing market.

If you have a definitive need to buy a home, and will hold onto it for years (no one ever really knows for sure), it is the best chance you will have at being better off buying now.
0 votes Thank Flag Link Fri Oct 1, 2010
Thank you for your question about today's buyers market conditions. No one can get ahead buying now, even at a great price because consumer confidence remains low. However, if you are looking for a great home for your family you can find one at a great price.
0 votes Thank Flag Link Fri Oct 1, 2010
It all depends on your real estate goals and how well you buy. There is right or wrong answer to your question.
0 votes Thank Flag Link Fri Oct 1, 2010
Like I saw mentioned earlier today. House prices have dropped by 18 or 19% over the past year. That is a loss of 1.5% every month over the past year. How can I make money on an asset that is losing that kind of value over time? It seem to be worse off at this time. Add in the 2+ million foreclosures already in the pipeline, the 7 million foreclosures to come and buying now looks like a losing proposition all the way around.
0 votes Thank Flag Link Sun Oct 25, 2009
If you can afford a home and have steady income - buy a home. Homes are quality of life purchases. Prices will go up and prices will go down.
Everyone wants a bargain, or the best deal they can get but i would not view a primary residence as an investment. If you factor in the current very low interest rates, lower prices in general across the board, and for most people - a mortgage interest tax deduction,...and many anxious sellers - you may find you can strike a better bargain than you expect.
Good luck!
Colin Campbell
Platinum Properties
DRE #01184302
Web Reference:
0 votes Thank Flag Link Sat Oct 24, 2009
I would wait. The $8k bribe is officially dead. No way to close in time now. The govn't may be foolish enough to add another one next year. So if you buy now you lose out on the next bribe.

If the buyers credit simply dies a natural death what will happen? House prices will DROP (at least enough)to make up the same $8k. The first time buyer pool is effectively drained by now. All of the frenzy in the past few months did that. Hud is going to be having serious financial problems before much longer. They are looking at going from 3.5% down to 5% or more. A lot of people used the $8k bribe along with seller concessions to effectively buy a house for NOTHING down. Some even walked away from closing with cash in hand. FHA has 14% loans now in default at some level.

Unless the program is put back up only QUALIFIED buyers will remain. Most either have a house already OR want to buy at very reasonable prices. Say circa 1999-2000 prices.

How many people are left who have 20% to put down? How many are left with good fico scores? How many are left that want to RISK seeing the house they buy today go down another 10-60% tomorrow? Finally, how many people have the income to pay for a house, AND trust that their income will stay.

Unemployment is to high. The GOOD news was that only a little over a half million people got laid off this time. It leaves everyone with a job wondering if they will be in the next half million in the next report. Put in fear of job loss, fear of greatly depreciating house prices, AND limited credit availablity how can you have a very big pool of people to buy at higher prices as we STILL have today? I can't see it.

I can not see how you could possibly buy a house today as an investment and get ahead unless hyperinflation ruins the dollar. Even then you lost money, just the dollar changed so you do not notice it.

The only exception would be if you bought a very cheap repo that no one else wanted. Then it could be possible. But it would need to be exceptionally cheap without major repairs needed.
0 votes Thank Flag Link Sat Oct 17, 2009
Dear Maher,
Great question. Those of us who have watched Real Estate for the last 10-20 years, and who have invested and worked with investors feel that Real Estate is still and will always be a solid investment.(long term)

Real Estate is attractive because home prices have dropped and mortgage interest rates are low, in addition to the first time home buyer incentives. There is also the additional REO and Foreclosure market that is strong as investors are willing to take the risk, that the Real Estate Market will it has in times past.
Some investors are waiting, while others are actively buying in this market. It all depends, upon your point of view.
0 votes Thank Flag Link Sat Oct 17, 2009
Location, location, location..... There in itself lies the answer.
0 votes Thank Flag Link Fri Oct 16, 2009
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