is it worth buying a home during the recession?

Asked by Francis84, Virginia Beach, VA Thu Nov 17, 2011

housing market, renting vs mortgage

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18
Shawn Ryan R…, Agent, Belleville, NJ
Sun Dec 11, 2011
using the nationally average, renting is currently quite expensive because the demand for rentals is high at the moment. conversely, homes in some areas are at prices not seen since 15-20 years ago and interest rates are at historic lows...therefore its a great time to buy
0 votes
AJ Heidmann, Agent, Arlington, VA
Sun Nov 20, 2011
The correct answer is... it depends on you and your situation. Some of these have already been mentioned below, but lets review; do you need a place to live, how confident are you in your current employment/financial situation, do you have a timeframe to hold for 5 years-ish, and how is your credit? If you can go through these and are pretty confident financially, have good credit and a realistic time frame, now is a good time to make purchase with historically low interest rates.

Now Virginia Beach is outside my service area, so you need to partner with someone who can help you analyze properties that fit your needs versus recent sold home and the rest of the available inventory to determine value. As an investor client always reminds me, "you make money on the purchase, 'cause if you over pay, you can't do nothing to make up for it". Find an agent that really knows the area you are looking in and develop a relationship that should get you into a home in the near future.

In investing, they say that the best time to buy "is when blood is in the streets", meaning when everyone is panicking. Everyone wanted to buy a place back in 2005-2006 at the peak, but now that prices have come down considerably in most places, they want to continue to wait and see for the perfect moment. Accept the fact that you will not buy at the absolute, positively bottom of the market, but close and then enjoy the property you have selected.

Best of luck!
Web Reference:  http://www.AJHeidmann.com
0 votes
Mack McCoy, Agent, Seattle, WA
Sat Nov 19, 2011
It has always been worthwhile to buy homes during recessions, depressions, corrections, times of crisis, whatever they want to call it.
0 votes
Mikel DeFran…, Agent, Canton, MA
Sat Nov 19, 2011
Francis, If you plan on being in the home for 5 years or more.. it is an incredibly good time to buy. Prices are low and interest rates are extremely low.
0 votes
, ,
Fri Nov 18, 2011
Watch which way the sheep are headed, turn around and run as fast as you can in the opposite direction, you are headed in the right direction. If others are sitting in the sidelines it is probably the right time to jump in.

Info on Lease Option or Rent to Own:
http://www.trulia.com/blog/jimsimms/2011/11/rent_option_or_r…
http://www.trulia.com/blog/jimsimms/2011/11/rent_to_own_continued

Criminal Credit Repair:
http://www.trulia.com/blog/jimsimms/2011/10/credit_repair_ca…

Down Payment Assistance in KY:
http://www.trulia.com/blog/jimsimms/2011/03/down_payment_ass…
0 votes
Larry and Lo…, Agent, Chesapeake, VA
Fri Nov 18, 2011
More money in a bear market than in a bear! That really lifted my day! Thanks Ron....Hope to see more of your posts.
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Vickie Young, Agent, Virginia Beach, VA
Fri Nov 18, 2011
Actually, now is the perfect time to purchase real estate. The prices of homes are unusually low and interest rate are less than 4%. So it is definitely a smart move to purchase a low cost home and lock yourself into a 30 year mortgage with an extremely low rate. Once the recession is over the cost of homes will rise and current buyers will find themselves in homes with plenty of equity.
Please visit http://searchpropertiesforsale.us to check out how inexpensive houses are right now.
0 votes
Ron Thomas, Agent, Fresno, CA
Fri Nov 18, 2011
It has been said, that more money is made in a BEAR market, than in a BEAR.

Good luck and may God bless
0 votes
Larry and Lo…, Agent, Chesapeake, VA
Fri Nov 18, 2011
Hi Francis,

I help people buy and sell houses and my team also offers professional property management. It is my experience that if you are somewhat secure in your job that this is an historic time to buy. When you are paying someone elses mortgage payment. That is ok because there are benefits to all parties but if you have a choice with home prices and interest rates as they are buying hasto be the best decision. There may be a few caveats; are you going to live in the home longer than 5-7 years. if not are you willing to become a landlord yourself. The housing ,market is simply experiencing a correction; much like the stock market does from time to time. I just had a young Naval Officer buy a duplex; he is living in one apartment and renting the other. His entire outlay for the month after you deduct the rent he receives will be about $350. What a deal. If he eventually rents both units he will have poistive cash flow of about $450. Good luck no matter what you decide!
0 votes
Joe McAvoy, Agent, Newport News, VA
Thu Nov 17, 2011
Hi Francis,

In this market, I find that in the price range most buyers can afford, the person who ventures out in this market to own instead of rent saves 10-20% or more on their monthly housing payment. Bargains abound and interest rates are literally at all-time historic lows. Not only that, but a portion of the payment helps you build equity in an asset instead of throwing money down the rent hole.

You’ll gain all this on top of big tax savings, the freedom of improving the home the way you want it, and the pride and satisfaction of owning your own piece of earth. Many people who rent find themselves forced out their leases earlier than desired because the owner needs to sell, falls behind on payments, or wants to move back into their home. Why put your lifestyle, comfort, and stability of residence at the whim and restriction of a landlord when you don't have to? I can recommend several trusted lenders to you that can likely have you ready to buy now or soon.

I looking forward to hearing from you so I can share more and answer additional questions you may have. This way we can discuss your housing options together on a more personalized basis. Feel free to call me any time with questions or service requests. My mobile number is 757-268-5123. You can click on the link below to review my profile and professional services.
0 votes
Kevin Monette, Agent, Virginia Beach, VA
Thu Nov 17, 2011
As people have lost their homes to the bank's, they have turned into renters. The rental market has caught on to this fact and have raised their rental prices higher than, what a mortgage would be on the same house. With interest rates so low and the fair market value stable, it is a great time to buy. The market is moving and those that can "really" qualify are getting great deals right now.
I would love to meet you at my office and show you what is on the market for rentals and to purchase and show you the proof in the pudding, if you will. Give me a call and let's set something up.

Kevin Monette
757-735-2628
0 votes
Richard Tate, Agent, Virginia Beach, VA
Thu Nov 17, 2011
Hello Francis,
The short answer to your question is, YES! There are a number of things to consider when deciding whether or not to buy, in any market. I urge you to contact a Realtor, of your choice, to guide you through these issues and the purchase process. Give me a call, and I'll be more than happy to assist you.

Richard Tate
Rose & Womble Realty
757-705-0822
0 votes
Jonathan O'C…, Agent, Virginia Beach, VA
Thu Nov 17, 2011
http://www.kcmblog.com/2011/11/02/is-it-really-time-to-buy-a-home/
http://www.kcmblog.com/2011/10/17/wall-street-journal-forbes…
http://www.kcmblog.com/2011/10/21/long-term-benefits-of-buyi…

That, above, looks like ONE source.
That one source is a distillation of lots of sources.

But then it all depends on if you are going to live in it or rent it out.
If you are going to live in it, then you will always pay SOMEBODY's mortgage.
Do you want to pay YOUR mortgage or your landlord's? Your landlord wants you to pay his/her mortgage.
If you are going to rent it out, then it's how much will it cost you vs. how much you will make with it.

That mortgage rates are still at 60 year historic lows you cannot beat.
Then look at this...
http://www.kcmblog.com/2011/11/16/the-price-is-the-same-but-…
Price risk versus mortgage rate risk.

Or in the words of one of my happy clients....
"Jonathan, if it weren't for this economy we couldn't afford to be buying this house."

It does not take a lot of effort for me to set up a very non-commital saved search in the MLS search engine just so you can see what is available. Also, be certain that I have never turned a prospect into a client by becoming a royal pain.

Let me know I I may assist you.
Jonathan O'Connor , Wm E Wood and Assoc
757-373-9355
0 votes
Tyrone Hardy, Agent, VIRGINIA BEACH, VA
Thu Nov 17, 2011
Yes now is a perfect time to buy, interest rates are low, seller are pricing there houses to sell fast. You can get your agent to ask the seller for closing cost. If you are looking at new construction in some locations they are adding 40 inch tv's, frig, oven. I think that says it all. There are so many advantages to buying now. That if you don't you may regret it later. The best think I could tell you is call me. Let me know what area you would like to live in, Bedrooms, baths, garage,sqft, ect.... we can see how much it would be to rent in that area. Then see how much it would to buy. The you can decided.
Web Reference:  http://www.tyronehardy.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Thu Nov 17, 2011
If your finances are in order, you need to buy and are ready to buy, why not consider the idea now....
0 votes
Jonathan O'C…, Agent, Virginia Beach, VA
Thu Nov 17, 2011
http://www.kcmblog.com/2011/11/02/is-it-really-time-to-buy-a-home/
http://www.kcmblog.com/2011/10/17/wall-street-journal-forbes…
http://www.kcmblog.com/2011/10/21/long-term-benefits-of-buyi…

That, above, looks like ONE source.
That one source is a distillation of lots of sources.

But then it all depends on if you are going to live in it or rent it out.
If you are going to live in it, then you will always pay SOMEBODY's mortgage.
Do you want to pay YOUR mortgage or your landlord's? Your landlord wants you to pay his/her mortgage.
If you are going to rent it out, then it's how much will it cost you vs. how much you will make with it.

That mortgage rates are still at 60 year historic lows you cannot beat.
Then look at this...
http://www.kcmblog.com/2011/11/16/the-price-is-the-same-but-…
Price risk versus mortgage rate risk.

Or in the words of one of my happy clients....
"Jonathan, if it weren't for this economy we couldn't afford to be buying this house."

It does not take a lot of effort for me to set up a very non-commital saved search in the MLS search engine just so you can see what is available. Also, be certain that I have never turned a prospect into a client by becoming a royal pain.

Let me know I I may assist you.
Jonathan O'Connor , Wm E Wood and Assoc
757-373-9355
0 votes
Annette Levi…, , New York, NY
Thu Nov 17, 2011
Francis,
Do you need a place to live? Is renting at least 30% cheaper then owning? If not it would pay for you to buy. The tax benefits will save you money plus allow you to deduct other items like charity contributions, furthering lowering your taxes.
You usually get more space for your money when you own a house. Plus you have the advantage of being able what you want to do to the house.
0 votes
Sally Grenier, Agent, Boulder, CO
Thu Nov 17, 2011
Why not? Now is as good a time as any. Home prices are low and interest rates are low. If you have a stable job, good credit, and money for a down payment, then why not? Now is a GREAT time to buy a home! Plus, stabilization of the real estate market is one of the keys to overall economic recovery.
0 votes
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